When your business needs additional money to make payroll, buy some needed equipment, pay for a new or expanded location, or satisfy bills, where do you turn to first? Most of us would usually go to our bank first. But what if the bank says ‘No’, or is taking too long to decide?
Capital brokers help business owners and real estate investors secure the financing they need, and on the timeline they need. We leverage our industry experience and knowledge, along with our network, to help clients get approved for the most favorable rates and terms they can qualify for.
We work across all industries and business types – Individuals, Partnerships, LLC’s and Sub-S and C corporations. We can help businesses get equipment, receivable, or contract financing, money to expand the operations, buy or enlarge their warehouse or store and, especially important in our market, help owners acquire housing units that they can rent to employees.
A loan broker works for you, the business owner or investor, not the lender. There are many hundreds of private lenders across the country that specialize in virtually every possible kind of lending, often with advances greater than most banks might consider. A broker works to find you those lenders that are a fit for your needs. In fact, the broker should only be paid if they deliver the loan that you want, just like a real estate broker doesn’t get paid unless the property they are representing sells.
So, if you think you may benefit from working with a loan broker, what should you look for when choosing one? Here are some considerations that will help you pick the right partner:
- Do they listen to you and try to really understand your business and what it needs? Be careful if you’re told that the same solution works for ‘almost everyone’. It doesn’t. The broker that really understands your needs is much more likely to find the right solution for you.
- Is the broker ready and willing to sign an NDA and a Non-Exclusive fee agreement? If they aren’t willing to guard your privacy and accept the risk that you may not accept the funding options they find for you, you should look elsewhere.
- Is the broker transparent, letting you know what he or she is hearing from potential lenders and what options may be available to you? Transparency always leads to the best available outcomes.
- On the topic of fees, you shouldn’t have to pay the broker anything up front. We are compensated when you close the loan you want. A reasonable range of fees for a brokers’ services is usually 1% -2% of the loan amount. If a fee materially lower or higher is quoted, you should ask why.
The next time your business needs funds and the bank says no, consider contacting a commercial loan broker to see what we can do for you and your business. Conversation is free, knowledge is powerful, and we’re here to help you!