10 Questions You Should Ask Every Lender

Small Business Finance Companies
Reading Time: 2 minutes

If money is the lifeblood of a small business, loans are the plasma. They’re an essential part of keeping the cash flowing throughout your company.

Getting a loan—or a lease—can be simple and cost-effective, but you have to choose the right lender. Direct Capital could give you some advice on that front, but let us be PointBlank: It’s better if you choose for yourself.

As you research and vet finance companies, banks and independent lenders, you’ll need some way to reliably distinguish between them. You’ll need a way to get the best possible deal you can find. One way to do that? Ask the following ten questions, plus a few useful follow-ups.

  1. How long have you been in business?
  2. What’s your website?
  3. What separates you from the pack? Rewards, Better Business Bureau scores?
  4. How lengthy is your application process?
  5. How long would it take me to get my financing?
  6. What are the payback terms? Are they variable?
  7. What are your rates?
  8. Why should I choose you over your competitors?
  9. If I’m unhappy with anything during this process, what are my options?
  10. Do you have any deals currently going that would entice me?

There’s obviously a million other questions you could ask, but this gives you a good start. It will tell you rough pricing, how flexible the lender is, how quickly you can get the lending you need and give you resources to call on in order to further research the company or follow up with them. By asking #9, you can ensure that if you do sign on, you’re not at a loss for where to go to have your issues resolved.

One question that will also be answered by having a conversation with a salesperson from a finance company and asking these questions and how you’ll be treated. If the sales rep is kind, patient and answers your questions without evasiveness, that’s probably another point in their favor.

How do you choose lenders?

 


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