By now, you know that business financing is a need. You’ve either read those words from PointBlank approximately six hojillion times or you’ve had to get financing for your business. In the end, either way, you recognize why it’s necessary.
What’s even more necessary is finding a reputable lending firm or bank to do business with. A skeevy lender can rush you cash, surely, but the shock of finding out that they’re ripping you off or not providing you with everything promised is a shock no small business can afford to experience. You need trust.
This isn’t going to be an advertisement for Direct Capital, though I hope you’ll check us out if you need financing. What this post is for, to put it simply, is to help you avoid illegitimate lenders. The alternative is miserable.
Avoiding The Worst
- Before making contact, do your homework. Does the company’s site look legitimate? Can you get a human being on the phone when you call? Are there testimonials to peruse? Be sure to check out consumer report sites for any red flags. If the company has no physical address and no website, that’s a giant crimson semaphore.
- Once you’ve made contact, inquire about rates, length of terms, tailoring plans to fit your business and what your needs are. Don’t make any commitments, and be wary of any business that aggressively upsells right off the bat. Beware impossibly great offers—a financing company with zero interest or a same-day turnaround time is, to put it mildly, wildly unrealistic.
- Closely read any paperwork you’re given. Even if companies seem reputable up until that point, be sure to look everything over twice and get answers to any questions that crop up. If a company answers vaguely or has blatantly predatory language in their agreements, look elsewhere.
Using these three simple tips, you can avoid the worst of the worst lenders and hopefully forge a partnership that works for your business. We all know how important that is.
Have you had a bad experience with a lender? Let us know!
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