What to Look for When Deciding
Small business owners often face the dilemma of picking a business financing lender. There are many options, whether it is a private lender or a bank. What should you look for? Is there something that matters more? Do you want a finance lender that is good at one thing or has a broad spectrum of financing options? Is the rate you are receiving competitive? How is the customer service?
Choosing the right business lender can be nerve wrecking. You want to make sure that they will fully be able to help you with your needs and are reliable. We are here to help your process of deciding on a business lender a little less nerve wrecking.
Here are 5 tips to help you choose:
1. Research the company! Find reviews or contact known customers of that company to get some feedback. Everyone has a different situation so make sure you get a few different perspectives. Direct Capital has a 4.7 out of 5 review score on Google.
2. Compare companies! Don’t just look at one financer, find a few and compare them. How long are their loan terms? What is their average rate? Direct Capital offers competitive rates and has been in business for more than 20 years.
3. Learn their track record! Learn more about the company. Find out if they are part of any financing groups that relate to your needs. See if they are recognized nationally by any magazines or awards. Direct Capital is recognized by Inc. 500/5000.
4. Find loans that meet your needs! Does the company offer a variety of loans? If you haven’t decided between a working capital* and equipment financing maybe you should find a company that can handle both and help you choose the right loan for your needs. Direct Capital offers a variety of financing options.
5. Customer service! Make sure the company provides strong customer service. You might be calling them for a better understanding about your loan or taking out a new loan. Financing can be stressful so you want a company that is patient and knowledgeable. Most companies provide a NPS (Net Promoter Score) which is feedback given by current customers. Direct Capital has a Net Promoter Score of 62.
Before you research lenders you should make sure you know what you want. Are you looking to upgrade your business? Renovate? Hire more employees? Get new equipment? Do you know what your credit is? Research your PAYDEX score with Dun & Bradstreet to make sure it is accurate.
There are different types of financing options available to business owners that won’t affect their cash flow:
They each have their own benefits and can be tailored to suit your needs differently, whether it is term length, rate, uses, amount borrowed, funding speed, and repayment. Different financing options can also benefit your book keeping or even taxes. Make sure to check with a tax professional before receiving financing to learn which one is the best option for your situation.
What advice would you give a business owner when it comes to choosing the right lender? Leave a comment below with your guidance.
Direct Capital is here to answer any questions you may have about your financing options. Fill out a form online to learn more or call us at 866-777-0117.
*Working capital not available in the following states: AK, DE, ND, VT