Commercial Funding Options for Small Businesses

A Business loan broker (commercial Loan Broker) helps small business owners get a better deal on commercial loans by working with a network of different lenders and lending products that the broker has developed a relationship with. These lending companies typically have interest rates which are less than the interest rates offered by banks and credit unions and a Business loan broker will often be able to find a better interest rate by negotiating for a better deal with the lender. The Commercial Loan Broker also helps the lender in getting the best terms and interest rate possible for the loan which is usually faster because the Commercial Loan Broker has negotiated the terms. This means faster payoff of the debt which is important to a growing business. Negotiating the terms of the commercial loan can result in the Business loan Broker saving the borrower money as well as time and aggravation for both parties.

A business loan broker is a direct business lender. A direct business lender is one which supplies business loans to individual business owners. The indirect lenders that are often involved in lending to small businesses are sub-prime lenders and they often charge very high interest rates and require collateral. This is not a problem for a direct business lender. Because direct business lender supplies business loans directly, they often know which lending products will get the best financing terms for the borrowers.

In today’s economic environment, small business loan brokers play an increasingly important role as business owners try to secure commercial loans for their businesses. A well-established Small business loan broker can find the best financing available for your needs and is knowledgeable about the many options available to you. They can match you with the right lender for your business needs and negotiate terms that will benefit both you and the lender. With a well-established broker, small businesses can obtain the much-needed capital within a relatively short period of time.

The first step a broker will take is to determine your unique business situation and then determine how you plan to obtain short-term funding. Many entrepreneurs start their search with a simple search online for “commercial funding”. There are a wide variety of commercial funding options to choose from including unsecured loans, line of credit, lease-option agreements, merchant cash advances, and more. A good Small business loan broker will be able to locate the right commercial financing product for your unique business needs.

Once a lender has been located, the next step will be to obtain pre-approval for the funding. While many entrepreneurs believe that this step is the most important, it really depends on the type of venture you are starting. Some ventures require only cash or a personal guarantee, while others may need to provide business assets as collateral or be willing to provide a large down payment. Small business loan brokers have access to a variety of financing programs to match the needs of each individual client. Most offer entrepreneurs the ability to apply for one of several options directly through their website or via a toll-free phone number.

The final step in obtaining small business loans is to submit your application to various lenders for approval. Businesses are required to submit detailed business plans, meet lending criteria, and submit payment receipts and/or statements. Once approved, funds will usually be electronically deposited into your checking or savings account. Small businesses should expect to receive a decision from multiple lenders shortly, although some lenders do not post their decisions until later in the day. Business loan brokers can help expedite the application process by making sure that multiple lenders are applying for funding and by assisting with any questions or concerns that you may have regarding the funding.