Choosing a lender goes well beyond finding the first bank that will extend you an offer for a commercial loan. If you are in need of capital to fund a large purchase or to pay for day-to-day operations while you build your customer base, it is important to choose the right lender so that you can build a strong business relationship that will last. For business owners who are not familiar with the factors that they should consider as they sift through their financing options, here are four secrets that will help you close the best loan from the best lender.
Not All Loan Types are Best for Your Business
You need to consider your business needs when you select a product. If you are meeting with a lender, they should be open to presenting you with several different loan options and not just the product that they think is best for you. The lender should be willing to ask you about your long-term goals so that they can show you the options, and then you can make the selection based on how the options fit into your long-term goals.
It Is About How Well the Lender Knows Your Industry
If you are not finding lenders who understand your needs, it is probably because the lenders you are meeting with do not know your market well enough. Commercial lenders have their own niches and you can benefit from doing business with a lender that can understand your particular needs for cash flow and funding. By trusting a commercial lender who is experienced in your industry, you will have peace of mind in knowing you have a relationship with a company who can fund you as your business and need for financing grow.
Loans May be a Product, But Do Not Forget About the Services
Commercial lenders offer more than just financial products, they must offer their borrowers a menu of services to separate themselves from other companies. You need to consider what commercial services are offered and what you value. Some credit unions, like PenFinancial Credit Union, offer you access to Commercial Account Managers so that they can help you make the right decisions and give you counsel. Other lenders may offer multiple locations for easy servicing or FDIC-insured products.
What is the Lender’s Relationship Like with Other Clients?
It can be very helpful to ask for references when you are looking for the right lender or loan officer. If they want your business and they are reputable, they will have references to give. Verify that the lender has a close relationship with their clients and that they can deal with situations that are common in your industry. Also be sure to find a lender that will be invested in your business in the long-term.
Choosing a commercial loan is one of the most important funding decisions you will make. Not only do you need to be sure that you are ready for funding, you need to be sure that you are ready to commit to a lender. Do your homework, and keep these secrets in the back of your mind.