Business Coaching

The Business Coach/Mentor and Parenting 

Business coaching and parenting share striking similarities, as both involve guiding someone toward their goals, developing their skills, and fostering their growth. Just as a business coach provides mentorship to entrepreneurs, parents act as lifelong mentors to their children, shaping their personal and professional success. 

 In both cases, the foundation is built on trust and support. Business coaches create an environment where entrepreneurs feel safe to discuss challenges and failures, offering feedback and guidance. Similarly, parents establish an atmosphere of unconditional love and support, enabling children to explore and learn without fear of judgment. In both roles, constructive feedback is crucial, helping individuals recognize their weaknesses and improve. 

 Another parallel lies in the need for accountability. A coach keeps an entrepreneur focused on their business goals, ensuring they remain on track and meet their targets. In parenting, accountability comes in the form of instilling responsibility in children, whether through chores, homework, or behavior. Both roles aim to ensure long-term success, whether that’s growing a business or developing well-rounded individuals. 

 Moreover, both coaching and parenting require adaptability. Just as parents must adjust their approach as their child grows, business coaches tailor their methods to the unique needs and evolving situations of each entrepreneur. Both processes involve continuous learning, where the mentor adjusts based on the individual’s changing circumstances. 

 Lastly, both business coaches and parents aim to empower rather than control. Their goal is to equip the individual with the skills and confidence needed to make independent decisions, whether that’s in business or in life. In this sense, the nurturing role of a parent mirrors that of a business coach, guiding someone toward their fullest potential while encouraging self-reliance. 

close up photography two brown cards

500 Credit Score?

Getting a loan with a 500 credit score can be challenging, as it is considered a poor credit score by most lenders. However, it is still possible to secure financing if you understand the options and requirements. Here’s a step-by-step overview of the process:

1. Understand Your Credit Situation

Before seeking a loan, check your credit report to understand why your score is low. A score of 500 may be due to missed payments, high credit utilization, or defaults. While it is considered “bad credit,” there are lenders that specialize in working with subprime borrowers.

2. Consider Different Loan Types

With a 500 credit score, traditional loans may be out of reach, but there are several alternative loan options:

  • Secured Loans: These loans require collateral, such as a car or savings account, which lowers the lender’s risk. Common options include secured personal loans or auto loans.
  • Bad Credit Personal Loans: Some lenders specialize in loans for people with bad credit. These loans typically come with higher interest rates to compensate for the increased risk.
  • Payday Loans: Short-term, high-interest loans that are relatively easy to qualify for, though they should be used cautiously due to their high fees and short repayment periods.
  • Credit Union Loans: Credit unions often provide more flexible terms and lower interest rates compared to traditional banks, and may be more willing to work with borrowers who have lower credit scores.
  • Peer-to-Peer Loans: Online platforms that connect borrowers directly with individual lenders. They may be more lenient regarding credit scores.
  • Cosigner Loans: Getting a cosigner with a better credit score can improve your chances of approval and may help you secure better loan terms.

3. Prepare for High Interest Rates and Fees

Lenders will charge higher interest rates to borrowers with a low credit score, sometimes upwards of 25% or more. Be aware that your monthly payments may be higher, and some loans may come with additional fees, such as origination or processing fees.

4. Look for Lenders that Cater to Bad Credit

Not all lenders are willing to approve loans for someone with a credit score of 500, so it’s important to focus on those that specialize in bad credit loans. Some reputable lenders in this space include:

  • Online lenders: Many online platforms offer personal loans to people with bad credit, but it’s crucial to compare interest rates and read the terms carefully.
  • Subprime Lenders: These lenders specifically work with borrowers who have low credit scores, but their terms may be more expensive.

5. Provide Collateral or a Cosigner

If you’re struggling to get approved for a loan, offering collateral (like a car or home) or asking someone with good credit to cosign for the loan can increase your chances. A cosigner takes on the risk with you, which reassures the lender.

6. Improve Your Credit (If Possible)

If you’re not in urgent need of a loan, consider taking steps to improve your credit score before applying. Simple strategies include paying down outstanding debts, disputing any errors on your credit report, and making timely payments going forward.

7. Apply for the Loan

Once you’ve identified the right type of loan and lender:

  • Submit the Application: Be ready to provide proof of income, employment, and identification. If you’re applying for a secured loan, you’ll need to provide documentation for the collateral.
  • Loan Review and Approval: Lenders will evaluate your application and may request additional documents. For subprime or secured loans, the approval process may be quicker, though you should expect to see higher interest rates.

8. Carefully Review the Terms

If approved, review the loan terms carefully before accepting. Ensure you understand the repayment schedule, interest rate, and any penalties for missed payments. If the terms are unfavorable, you might consider delaying your loan application and improving your credit first.

Conclusion

While getting a loan with a 500 credit score is possible, it comes with higher costs and potential risks. You may need to explore specialized lenders or opt for secured loans. Improving your credit before applying can also help you access better terms in the future.

Good Options for Bad Credit

Business owners with low credit scores can still access various loan options, though the terms may differ from those offered to those with better credit. Here’s a breakdown of the primary options available:

1. Business Term Loans from Alternative Lenders

  • Description: Unlike traditional banks, alternative lenders may offer business term loans to low-credit applicants.
  • Loan Amount: Typically ranges from $5,000 to $500,000.
  • Interest Rates: Higher rates, usually ranging from 10% to 30%+.
  • Repayment Terms: Usually 1 to 5 years.
  • Eligibility: Requires business financials, consistent revenue, and sometimes a personal guarantee.
  • Notable Lenders: OnDeck, BlueVine, Fundbox.

2. Merchant Cash Advances (MCAs)

  • Description: A lump-sum advance repaid through a percentage of future sales.
  • Loan Amount: Ranges from $5,000 to $250,000.
  • Interest Rates: Factor rates instead of APR; typically 1.2 to 1.5 times the advance.
  • Repayment Terms: Daily or weekly deductions from revenue until repayment.
  • Eligibility: Based on daily credit card sales rather than credit score.
  • Notable Lenders: Rapid Finance, Credibly, CAN Capital.

3. Invoice Financing (Factoring)

  • Description: Borrowing against unpaid invoices; lenders advance funds for invoices due in the future.
  • Loan Amount: Typically 70% to 90% of invoice value.
  • Interest Rates: Factor fees (1% to 5% of invoice value).
  • Repayment Terms: Loan repaid when the customer pays the invoice.
  • Eligibility: Based on the creditworthiness of clients rather than the business owner’s credit score.
  • Notable Lenders: Fundbox, BlueVine, Triumph Business Capital.

4. Equipment Financing

  • Description: Loans or leases to purchase business equipment, using the equipment as collateral.
  • Loan Amount: Up to 100% of the equipment’s value.
  • Interest Rates: Generally 8% to 30% depending on creditworthiness.
  • Repayment Terms: 1 to 7 years.
  • Eligibility: Low credit scores can be accepted if the equipment value covers the loan.
  • Notable Lenders: Crest Capital, Balboa Capital.

5. Microloans

  • Description: Smaller loans from nonprofit organizations or community development financial institutions (CDFIs).
  • Loan Amount: Up to $50,000.
  • Interest Rates: Typically lower than alternative lenders, around 8% to 15%.
  • Repayment Terms: 1 to 6 years.
  • Eligibility: More lenient toward low credit scores but require a strong business plan.
  • Notable Lenders: Kiva, Accion Opportunity Fund, Grameen America.

6. Personal Loans for Business

  • Description: Personal loans used to fund a business, often a last resort.
  • Loan Amount: $1,000 to $100,000.
  • Interest Rates: Vary widely but typically 10% to 35% for low-credit borrowers.
  • Repayment Terms: 1 to 7 years.
  • Eligibility: Based solely on the personal credit score, with higher rates for low scores.
  • Notable Lenders: LendingClub, Upgrade, Upstart.

7. Business Credit Cards for Bad Credit

  • Description: Credit cards designed for business owners with poor credit, often with lower credit limits.
  • Loan Amount: $500 to $10,000 in revolving credit.
  • Interest Rates: 20% to 30% APR.
  • Repayment Terms: Ongoing, based on usage and monthly payments.
  • Eligibility: Easier to qualify, though higher interest and fees apply.
  • Notable Lenders: Capital One Spark Classic, Wells Fargo Business Secured.

Key Considerations for Low-Credit Borrowers:

  • Collateral: Many of these loans require collateral (e.g., equipment, invoices) to secure the loan.
  • Higher Costs: Low-credit loans often come with higher interest rates and fees.
  • Revenue-Based: Some options, like MCAs and invoice factoring, focus on cash flow rather than credit.
  • Improve Credit: Taking steps to improve your credit score can expand financing options and lower future costs.

While these loans offer access to capital, business owners should carefully assess the terms, as high rates and fees can be challenging to manage if the business’s cash flow is inconsistent.

american flag with rolled dollar bills

What Disqualifies You from Getting an SBA Loan

Small Business Administration (SBA) loans are a valuable resource for entrepreneurs looking to finance their business ventures. With competitive terms and government backing, these loans can be a lifeline for businesses that meet the eligibility requirements. However, not all applicants qualify. There are several factors that can disqualify you from securing an SBA loan, and understanding them ahead of time can save you both time and effort. Here are some common disqualifiers:

1. Poor Personal or Business Credit History

One of the biggest factors that can disqualify you from receiving an SBA loan is poor credit. Both your personal and business credit scores play a significant role in the application process. Typically, SBA lenders prefer to see a minimum personal credit score of around 650, although some may require higher. If you’ve experienced a bankruptcy, foreclosure, or have significant unpaid debts, it can raise red flags for lenders.

A strong credit history is an indicator that you are financially responsible, and it assures lenders that you will repay the loan on time. Businesses or individuals with poor credit may struggle to qualify unless they take steps to improve their credit standing before applying.

2. Ineligibility Due to Industry

The type of business you run can also disqualify you from getting an SBA loan. The SBA restricts loans to certain industries, including those involved in illegal activities, gambling, and speculative ventures. Other industries, like multi-level marketing and pyramid schemes, are also typically excluded.

Additionally, if your business is engaged in lending, life insurance, or any activity of a sexual nature, it may not be eligible for an SBA loan. It’s essential to check the SBA’s list of restricted industries before applying to ensure your business qualifies.

3. Lack of Repayment Ability

SBA loans are designed for businesses that have the ability to repay. Lenders will thoroughly examine your financials to ensure you have sufficient cash flow to cover loan payments. If your business is struggling with debt or doesn’t generate enough revenue, it may be difficult to prove your ability to repay the loan.

SBA lenders often evaluate your debt-to-income ratio to determine your financial health. If your business is over-leveraged or doesn’t have a history of steady income, it can hurt your chances of loan approval. You’ll need to show a solid repayment plan that demonstrates your capacity to manage both the loan and your existing obligations.

4. Non-U.S. Citizenship

While SBA loans are open to a wide range of businesses, they are reserved for U.S. citizens or lawful permanent residents. If you are not a U.S. citizen or do not have the proper legal status, you could be disqualified. Business owners with foreign ownership may also face hurdles unless they have an established U.S. entity and meet specific requirements.

It’s crucial to verify your eligibility based on your residency or citizenship status before applying for an SBA loan, as this is a non-negotiable criterion for loan approval.

5. Past Criminal History

Having a criminal record doesn’t automatically disqualify you from receiving an SBA loan, but certain offenses can. Lenders are less likely to approve loans for individuals with convictions related to financial fraud, embezzlement, or crimes involving dishonesty.

If you have a criminal history, the SBA requires you to disclose it during the application process. In some cases, a past offense might not be a deal-breaker, but transparency is essential. Some applicants may be asked to submit additional documentation or evidence of rehabilitation to support their application.

6. Non-Compliance with SBA Guidelines

Failure to comply with specific SBA guidelines is another major disqualifier. For instance, if you have outstanding federal debts, such as tax liens or defaulted student loans, you may be disqualified from receiving an SBA loan. It’s essential to ensure all of your financial obligations are current and in good standing.

Additionally, incomplete or incorrect documentation during the loan application process can cause delays or outright denials. Lenders will require a variety of financial records, business plans, and legal documents to assess your eligibility. If you fail to provide the necessary paperwork or don’t meet the SBA’s standards, your application could be rejected.

7. Business is Too New or Not Established

While startups can qualify for SBA loans, newer businesses often face more scrutiny. Lenders prefer to work with businesses that have a proven track record of generating revenue. If your business has been operating for a short period or lacks the necessary financial documentation, it may be difficult to get approved.

Most SBA loans require businesses to be operational for at least two years. If your business is younger than that, you might need to provide a detailed business plan, financial forecasts, and a strong case for why your business will succeed. Otherwise, you risk being disqualified due to lack of business history.

Conclusion

SBA loans offer a fantastic opportunity for small businesses to access the funding they need. However, several factors can disqualify applicants from getting approved, ranging from poor credit and lack of financial strength to operating in a restricted industry or failing to meet legal requirements. By understanding these disqualifiers ahead of time, you can take steps to improve your eligibility and increase your chances of securing an SBA loan.

If you’re unsure about your qualifications, it’s wise to consult with a financial advisor or SBA-approved lender before starting the application process. By addressing any potential red flags in advance, you’ll be better positioned to obtain the funding your business needs to grow.

Lead Generation Trends

Recent studies highlight several trends in lead generation that businesses can leverage for growth:

  1. Content Marketing: Content marketing is the most effective channel for lead generation, accounting for over 50% of leads in 2023. High-quality, relevant content like blogs, guides, and whitepapers attracts potential customers and helps establish trust. SEO plays a key role, with 35% of high-value leads coming from search engine optimization efforts​(CIENCE Leads)​(Databox).
  2. Account-Based Marketing (ABM): ABM is increasingly popular in B2B markets, focusing on targeting specific accounts rather than individual leads. This approach is particularly effective when engaging decision-makers within a company. 67% of brands now use ABM to drive more personalized and focused interactions​(CIENCE Leads)​(Datamatics Business Solutions Ltd.).
  3. Intent Data: Marketers are using intent data to track and understand customer behavior, helping them identify prospects who are actively looking for solutions. By analyzing customer interactions, companies can better target leads who are more likely to convert​(CIENCE Leads)​(Datamatics Business Solutions Ltd.).
  4. Digital-First Lead Generation: The shift toward digital engagement post-COVID has made digital channels like chatbots, video marketing, and social media more critical for lead generation. Businesses are increasingly prioritizing online strategies to capture and nurture leads​(Datamatics Business Solutions Ltd.).

These trends underscore the importance of personalized, data-driven strategies in modern lead generation efforts, helping businesses grow by attracting and converting higher-quality leads.

#LeadGeneration #BusinessGrowth #DigitalMarketing #ContentMarketing #AccountBasedMarketing

Invoice Factoring

The Dynamics of Invoice Factoring and Its Business Implications

Invoice factoring is a financial transaction where a business sells its accounts receivable (invoices) to a third party, called a factor, at a discount in exchange for immediate cash. This mechanism helps businesses maintain cash flow without waiting for customers to pay their invoices, which often take 30 to 90 days or longer. While invoice factoring can provide several benefits, businesses must assess whether it is a good fit based on their specific needs, financial health, and long-term strategy.

The Dynamics of Invoice Factoring

The fundamental structure of invoice factoring involves three parties: the business (also known as the seller), the customer (the debtor), and the factoring company (the factor). Once a business issues an invoice to a customer, it can choose to sell that invoice to a factoring company, which typically pays the business a percentage of the invoice value upfront, usually around 70-90%. When the customer eventually pays the invoice, the factoring company releases the remaining amount to the business, minus a fee for the service.

The fee structure depends on the risk the factor assumes, the size of the invoice, the creditworthiness of the customers, and the time it takes for the customer to pay. Factoring fees can range from 1% to 5% of the invoice value or more. The factor also assumes responsibility for collecting the payment from the customer, reducing the burden of collection on the business.

When to Take Advantage of Invoice Factoring

Invoice factoring is beneficial in specific situations where cash flow is essential, and waiting for payment would harm the business’s operations. Here are some scenarios in which businesses can take advantage of invoice factoring:

1. Cash Flow Gaps: Invoice factoring can be particularly useful for businesses with long payment cycles but immediate operating expenses. Industries like manufacturing, logistics, and staffing often rely on factoring because they must pay suppliers and employees long before they receive payment from their customers.

2. Business Growth: When businesses experience rapid growth, they may face a strain on working capital. Factoring provides immediate liquidity, enabling the company to meet rising demand, invest in production, and take on new clients without taking on traditional debt.

3. Limited Credit Access: For small and medium-sized enterprises (SMEs) or startups with limited access to bank loans or lines of credit, factoring is a viable alternative. Businesses that cannot qualify for traditional financing due to a lack of collateral or a short credit history can use their accounts receivable as a form of collateral through factoring.

4. Seasonal Businesses: Businesses that experience seasonal fluctuations in revenue, such as retail or agriculture, can benefit from factoring to cover off-season expenses. Factoring allows them to access funds without waiting for their high-revenue period to return.

5. Customer Payment Delays: Companies with customers who take extended time to pay their invoices can use factoring to accelerate payment. Instead of relying on customers’ payment schedules, businesses can receive cash immediately, improving liquidity.

How to Know if Invoice Factoring is a Good Fit

While invoice factoring offers several advantages, it may not be the best fit for every business. Several factors must be considered before committing to a factoring arrangement.

1. Cost vs. Cash Flow Need: Factoring can be more expensive than other financing options due to fees, which reduce the total amount collected from invoices. Businesses must assess whether the cost of factoring is justified by the immediate cash flow needs. If the business can afford to wait for payments and has other financing options, factoring may not be the most cost-effective solution.

2. Creditworthiness of Customers: Factoring companies evaluate the creditworthiness of a business’s customers before agreeing to purchase invoices. If a business has a customer base with poor payment histories or credit issues, it may be difficult to qualify for factoring or the fees may be significantly higher. Businesses that rely on factoring must have customers who pay their invoices reliably.

3. Frequency of Use: Factoring is usually most beneficial for businesses that need to bridge cash flow gaps occasionally. For businesses that need constant cash infusions, factoring costs may add up quickly, making it less attractive as a long-term solution. In such cases, other forms of financing like bank loans or lines of credit might be more sustainable.

4. Customer Relations: Since factoring companies handle collections, this could potentially affect the relationship between a business and its customers. Some customers may perceive the involvement of a third party in collections negatively, particularly if they feel pressured to pay. Businesses that prioritize maintaining close, personal relationships with their customers should carefully consider whether factoring aligns with their customer management strategy.

5. Business Stability and Growth Plans: If a business is experiencing stable growth with consistent cash flow, it might not need the immediate liquidity that factoring provides. Factoring is best suited for companies experiencing cash flow challenges or facing growth opportunities that require immediate working capital. Businesses with strong cash reserves and a well-balanced cash flow may not need to rely on factoring.

 Conclusion

Invoice factoring can be a powerful tool for businesses looking to maintain steady cash flow, especially in industries with long payment cycles or during periods of rapid growth. It offers flexibility and access to cash without taking on debt, making it a viable option for businesses with limited access to traditional financing. However, the costs associated with factoring, the impact on customer relationships, and the creditworthiness of customers must all be carefully considered. Businesses that assess their cash flow needs, evaluate the cost of factoring, and understand the implications for customer relations can determine whether invoice factoring is the right fit for their operational strategy.

Ultimately, invoice factoring is not a one-size-fits-all solution. It can provide significant benefits when used strategically, but it is essential for business owners to weigh the pros and cons to ensure it aligns with their long-term goals.

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StartUp Financing Options

BASICS OF STARTUP FUNDING FOR SMALL BUSINESS

Startup funding is not like other forms of business funding. Since we are working with a business
that either has very little to no time in business and very little to no revenue, the criteria we look
for are tied to the borrower themselves instead of the business.
The distinction between an established business and a startup is very important to be able to identify.

There are 3 general rules to distinguish between a startup and an established business, which involves looking at their time in business and revenue.


Syndicated Line of Credit otherwise known as a SLOC:

This is a very unique way of getting a startup funding, and it is the easiest option to qualify for out
of the four. A SLOC uses the borrower’s credit to go to specific banks in a specific order to secure
multiple offers which makes up the total available line of credit. These offers are in the form of multiple
credit cards so the borrower receives 2-6 credit cards which equals the approval amount. These credit cards typically come with 12-24 months of 0% interest. There is also added flexibility due to the fact that as cards get paid off they can keep using them, but they also can get money directly from the cards’ deposited directly into your bank account as well.

Personal Term Loan

A personal term loan can typically only be gotten if the client also has two years of tax returns with $50k+ in W-2 income. It is just a loan that is directly deposited into the client’s account.

Business Line of Credit

Similar to the SLOC, this is the same concept except the cards are business cards. This can also only be given if  the borrower has two years of $50k+ in W-2 income. The amount approved for these business cards is usually less than the personal version.

401k/IRA Disbursement

This is a specific technique to pull money out of a retirement fund earlier without
having to pay the early disbursements fees. This will only work if the client already has
a 401k/IRA. If a business has less than $5,000 per month revenue, then they would automatically be
considered a Startup. If a business has been making revenue for less than 3 months no matter the amount of
revenue, that also means they are a startup. If a business owner uses the term “Pre-revenue” that typically means they have no revenue right now, which will also mean they are a startup

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EQUIPMENT FINANCING

Equipment Financing Outline

What: Current business owners and startups can get approved for equipment leasing or
financing in order to grow their business or replace broken equipment.


Why: Get financed for equipment in as little as 24hrs for non titled equipment and 5 days for
titled. Simple credit qualification with 12 to 60 month payback terms. Ability to buy the
equipment at the end of the lease or purchase a new one. For financed equipment keep the
equipment you financed at the end of the term. Startups can receive up to 50k or more.

Non-Startups can finance up to 150k per application


Who’s Eligible: Minimum personal credit score is 580 with emphasis on depth of credit.
Business credit score based on the paydex score of 70 or above. For startups a minimum score of
680 is required.


Who is not: Restricted industries are planes, ships, boats, and guns.


Documents Needed: 3 months bank statements and invoice for equipment the client plans to
purchase.


Key Things To Remember About Equipment Financing
And Leasing

When a company seeks financing, it means they want a loan to buy equipment for ownership.
When a company wants to lease equipment, they are generally looking to rent equipment. As
mentioned in the last article, the lease can specify whether the lessee is leasing to own, and
provides contingencies should they decide to terminate the lease early.
Here’s some things to remember about equipment financing and leasing:


● Equipment Financing Requires Less Up-Front Capital
Anyone who’s ever tried to buy something that costs more than they have recognizes a loan.
That is exactly what equipment financing is. It is using someone else’s money to afford
something. Less capital is required up front because the equipment isn’t being purchased with
cash.


● There Are Tax Advantages Available For Equipment Financing
Annual tax deductions for small businesses can be pretty generous in the United States.
Equipment financing can be written off as a small business expenses for up to $500K every
year. So there is both a clear logic and financial incentive to get equipment financing.


● Fewer Documents When Using Equipment Financing
When a company applies for equipment financing and leasing, the lenders want to see specific
documents. They will want to see fewer documents when a company is looking to purchase
equipment rather than lease it. Documentation for a company’s credit score and financial history
is less important for equipment financing. It is more important for equipment leasing.


About Equipment Leasing & The Differences


Unlike equipment financing, the company needing equipment becomes the lessee, and has an
agreement with a lessor. The purpose of an equipment lease is to rent equipment rather than
buy it. There are advantages to this which we’ll cover here.


● Flexibility To Stay Current With Technology
Many companies (especially technology companies) consistently upgrade their equipment every
few years. It makes little sense to buy something only to have to replace it so soon.
Industries in construction aren’t always having to change their equipment, but there are highly
specialized equipment which some companies don’t need regularly. They may use a lease for
those.


● No Down Payment For An Equipment Lease
There are certainly exceptions, but many equipment leases don’t require a down-payment. This
means less money invested for a small business, freeing up capital for other needs.
This is highly attractive to startup companies or businesses that don’t have a lot of working
capital. The less they spend on expenses the better.


● Similar Tax Incentive
Just like equipment financing, a company can write off the expenses of the lease for tax
reimbursement. This is also important since many companies use tax-relief to their advantage.


● Lower Up-Front Costs Or None At All
As mentioned before, most of these leases don’t require up-front cash. Also, the leases will
usually have a lower monthly payment. (But the interest paid means you are probably going to
pay more in the long run)


How To Find The Right Lender Or Loan


The lending industry has become flooded with companies looking for ways to finance or acquire
essential equipment. A study found that in 2017 the demand for leasing equipment vs
purchasing was rapidly fluctuating. But the demand was always there.


A majority of companies were using cash as a preferred method from 2012 to 2016, however, in
2021 a survey was completed which indicated that 79% of small businesses had an outstanding
debt. 44% of those owed anywhere from $100K to 1 Million dollars. It is now documented that
2020 was officially a global recession, causing worldwide financial hardships. Millions of
businesses were forced to seek financing to stay afloat and acquire essential equipment.
When this occurred, businesses were either surviving because their industry was in-demand, or
it was deemed non-essential and sunk. During this troublesome period of financial volatility, loan
brokers were highly valued by businesses. A broker could connect a lender/lessor with a needy
business or lessee.


Furthermore, lending institutions like traditional banks (large or small) were the first place that
businesses went to get the funds they needed… and were often declined.
Alternative lending options have a significantly higher rate of approval and provide more
flexibility with payments.


A Broker Has The Connections


Brokers are invaluable for both equipment financing and leasing. It can be a frustrating process
to qualify for loans or leases. Brokers make this process much simpler and will work on your
behalf, making sure you get the best options possible.


So When Do I Use A Broker?


● When you are unsure of your credit history.
● When you haven’t been in business for very long.
● If you need a large budget loan or lease.
● If you need a lease with specific terms.
● In the event that you need a loan faster than traditional banks.
There are other benefits to having a broker, but the ones listed above are pretty common
reasons that businesses use a loan broker.


How Long Does Equipment Financing And Leasing Take
To Complete?


A broker can make the application time and arrangement time shorter. Assuming you company
uses a broker, there are less things to worry about:
● Your company doesn’t have to search for a lender or lessor. Brokers already have
contacts in place.
● The broker determines what you can qualify for, you don’t have to waste time working
with a client who can’t help you.
● Brokers have all of the legal documents and contracts ready for deals. You don’t need to
get those created.
● The broker’s interests align with yours. The broker gets paid after the deal closes.
● The broker handles the negotiations for you.
● Online lending is proven to have a higher rate of success than all banks. Brokers often
use online lending to meet a variety of business needs. (Big or small)