Any small business owner that has applied for a small business loan in the past knows the power it generates and the possibility it brings for their small business to reach new heights. But with the immense choices, it can be somewhat overwhelming and time-consuming for any entrepreneur focused on growing their business to take on more responsibility.
Nowadays, a business’s future can very well be decided on acquiring business financing or not. With the difficulties small business owners face nowadays, an injection of working capital could help them survive and thrive in an uncertain time, and attend to their many business needs.
But while deciding to acquire a loan or not is hard in and of itself, it’s even harder to see your loan request accepted. That’s where a business loan expert comes in. Not only will a business loan expert help you increase the chances of seeing it accepted, but it will also save you precious time to allocate to your small business and guarantee its success and survivability.
With this article, you’ll learn:
And more. So, without further ado, let’s look into this topic and, after it, you can decide if acquiring a business loan expert’s services is the best call for you and your small business.
What is a Business Loan Expert:
Business loan experts — sometimes also known as business loan brokers — act as intermediaries between business owners and different lenders. When you reach out to a business loan expert, he firstly will get to know you, your small business, and your financial goals.
Most business loan experts have good relations with a variety of lenders. With their industry knowledge, they can par business owners with the best possible lender for their business goals and discuss various lenders and programs. Business loan experts will help you find the most suitable type of loan for your small business goals.
For any small business owner, their primary focus is on their business, and most times, they don’t have the time to look for the best possible business financing available. A business loan expert will do this on your behalf, and once they get a clear-cut vision of your business goals, he will directly reach out to business lenders and arrange the best possible loan for you and your small business. Business loan experts then charge a fee for their service — normally from 1%-6% of the loan amount.
When Should a Small Business Owner Look for a Business Loan Expert:
Any small business owner that has tried to acquire a small business loan in the past can speak of the number of loan products and offers available to him. Also, how difficult and time-consuming a loan application process is — plus the uncertainty of approval. A new small business owner without a polished credit history, good financial statements, and a not-so-impressive cash flow can see its request ignored and its business loan application denied.
A business loan expert can be a tremendous help for a new business or startup that needs a crucial injection of capital. Whilst new business owners can have a tremendously hard time looking for a good business financing option — and an even harder time seeing it approved — a business loan expert’s good relations with lenders can play a tremendous role. Using their network to their advantage, they can improve your business eligibility in the eyes of the lenders and might even improve the repayment terms and eligibility in the eyes of the lenders and might even improve the repayment terms, as well as the loan’s interest rates.
As small business owners look to lawyers for judicial help and accountants for any accounting needs, a business owner can have a professional look into their loan troubles or help them acquire the best funding possible.
If your number one priority is saving time and spending it on growing your business and achieving your goals, a business loan expert’s services could be a tremendously helpful choice. For new business owners looking to acquire a loan without pitch-perfect credit history or credit reports, a loan expert’s connections and expertise can play a tremendous role in your loan request’s approval process. More so, a business loan expert can also help you create or improve your business plans if the loan request is approved.
Different Types of Business Loan Experts:
As with many things in the business world, there are experts in every field of work. That’s no different in the loan industry — in this case, in the business loan expert industry.
There are several loan options to opt for, as well as an equal number of loan experts specializing in offering business owners the best possible financing option on those same loan options.
Let’s look at some of the different types of business loan experts a small business owner can look for:
- Commercial Loan Expert: As a small business owner concerned over their business needs, knowing what’s the best loan option might not be a top priority. A commercial loan expert can help you decide what’s the best financing option for your business. If you’re looking for a higher amount of working capital, he can help you enroll on a bank term loan or an SBA 7 loan. Overall, it’s a good first choice if a business owner is unsure of what’s the best loan option for their small business.
- Startup Loan Expert: A startup owner or a new business owner typically has a hard time seeing a loan request accepted. A startup loan expert is a business loan expert that specializes solely in helping these branches of small business owners see their business requests go through. They take into consideration your credit score, annual revenue, and more to help you access the best loan offer available, be it for higher amounts or smaller short-term loans.
- Merchant Cash Advance Loan Expert: As the name implies, a merchant cash advance loan expert focuses solely on helping business owners acquire a merchant cash advance loan. A merchant cash advance company gives an amount of cash upfront, then takes a percentage of the sales, which can be quite expensive to repay. An MCA loan expert can help you acquire the best option possible and also help you decide if this expensive loan option is the best for your small business.
- Equipment Financing Loan Expert: Equipment financing is a great option for a small business owner looking to acquire new equipment. This type of loan works similarly to a lease, but you’ll own the equipment at the end of the loan. In these types of loans, an equipment financing lender upfronts 80%-90% of the capital. As these loan types require collateral — in the form of the equipment itself — a loan expert’s specialization could lead them to tip the repayment terms and conditions of the collateral in your favor.
- Invoice Factoring Loan Expert: Invoice factoring allows business owners to sell their client’s unpaid invoices to a factoring agency. This agency will front around 80% – 90% of the capital of their clients’ invoices and move to collect payment. Once the payment is collected, a business owner will receive the value of the invoices minus a fee. An invoice factoring loan expert can help you pair with the best invoice factoring company for your small business and help you choose the best terms.
Advantages and Disadvantages of Using a Business Loan Expert:
While there are advantages to hiring professional help to look after a small business owner’s loan request, there are also a few risks or negative steps involved. Here we look at some of the advantages and disadvantages of hiring a business loan expert and what a small business owner must pay attention to if they’re looking to hire the best professional help available.
- Time Saved: A business loan expert will save precious time and effort for a borrower that chooses to opt for their services. He will look for loan offers on your behalf while you look for the best ways to grow your small business.
- Easier Loan Application Process: Thanks to a loan expert’s network and good relations with lenders and financial institutions, a borrower will have a tremendously easier time applying for a small business loan than if he directly applied for a bank loan or an SBA loan. Even if you have bad credit or don’t have collateral to back the loan — like commercial real estate — you can still have a very good chance of seeing your loan request approved.
- Improved Loan Obligations: Other than saving time for a small business owner and easing the loan application process, a business loan expert can also quite heavily minimize the obligations of a loan program. He can re-negotiate refinancing terms, improve tax returns, and smooth the monthly payments to best suit your small business.
- Business Loan Experts Charge a Fee: A loan expert gets paid for their services through a fee that he charges to the loan request — adding even more to the loan’s monthly payments. While this fee can be worthwhile for the amount of time and work an expert saves you, it can also add up to be quite expensive if the loan request takes too much of their time and effort.
- Applying for a Loan is Significantly Easier Nowadays: While applying for loans directly still takes time and effort, there are more options nowadays than asking for a loan from a financial institution or the U.S. small business administration. Online term loans offer a good amount of working capital with an easy application process. In the case of Biz2Credit, you can have up to $2 million in working capital and get approved within as little as 24 hours, with the best repayment terms possible.
- You Have to Research the Business Loan Expert’s Proficiency: Just because small business owners don’t have to research loan options, it doesn’t mean they don’t have to do any research. As a small business owner, you need to know if that loan expert is proficient in the type of loan your business requires. Also, know if the loan expert has worked with similar types of small businesses or not. You must also know if the business loan expert is trustworthy, which brings us to the next step.
Looking Out for a Business Loan Expert’s Red Flags:
Many business loan experts, unfortunately, can be quite untrustworthy. Here are a few ways to identify a possible untrustworthy expert:
- It guarantees loan funding: While he can facilitate the loan acceptance, it’s never guaranteed. A trustworthy loan expert will tell you so and walk you through the process. If he ignores this process and guarantees you capital, it’s best to look for other options.
- It’s not concerned about your credit: Whilst, as said above, a trustworthy loan expert can offer you a loan option with bad credit, he considers it very seriously. He will offer the best option available for your credit score, but if he ignores the subject, it could mean he will offer you a high-interest option and receive a hefty fee.
- Has limited contact information: If you can’t find basic information on their website — phone number, address, e-mail, etc. — It’s best to avoid it.
- Doesn’t have referrals or reviews available: If a loan expert doesn’t have any information about his past work or satisfied borrowers on their website, the best thing to do is to avoid it too. It might mean that he might offer you bad credit options and charge a significant fee for them, and you don’t have the past review of clients to tell you so.
Picking the Best Business Loan Expert for Your Small Business:
When looking for a business loan expert, a small business owner must keep in mind all the advantages and drawbacks of acquiring their services.
It also means that, as a business owner, you have to do your research on who’s the best option for you. Look through their website and see if they’re proficient with the type of loan you’re requesting, or ask if they can help you with other options if they deem it a better choice.
Read their referrals and past work, see if they seem trustworthy and professional, and don’t be afraid to ask any questions you want because any reputable loan expert will gladly answer them all.
If You’re Not Satisfied with a Business Loan Expert’s Terms, Reach Out to Business Lenders Directly:
A business loan expert can offer any small business owner significant help with a loan request, but it doesn’t come cheap or easily. There are quite a few steps small business owners have to take into consideration, as seen above, and sometimes it’s best to look for an option on their own.
With the advent of the internet and private lenders, acquiring a business loan is significantly easier, and the repayment terms are much smoother than they used to be. Here at Biz2Credit, our expertise is to provide the best financing option available for small businesses.
From acquiring working capital, term loans, and commercial real estate loans, you’ll find the best option for your small business, without forgetting to give you the best possible repayment terms! Apply with as little as 4 minutes of your time, and hear from us within as little as 24 hours. You can have the capital in your bank account within 72 hours without having any extra fees.
Don’t hesitate and apply today! Feel free to reach out to our team, and they’ll walk you through the best option available for your small business.