By Rick Burgess, CEO, Connect Lending
America is built upon our entrepreneurial spirit. This spirit is what drives our great country to innovate and endure adversity in challenging the ways businesses are managed. Every day, individuals embark on setting up a business to capitalize on the advantages our great country has to offer. With changes to regulations, additional requirements and limited lending practices, traditional bank loans aren’t always available, and may not be accessible for the everyday business.
Fortunately, there are numerous types of alternative lending solutions in the marketplace. But, finding them by simply walking into your local bank or credit union isn’t going to be fruitful. Connect Lending provides an online platform to match small business owners to the right lender for their business solution. When using our platform, review these key factors with your client to ensure a smooth process for securing a loan:
When applying for access to capital, be as accurate as possible in your answers to our online questionnaire. Lenders will all have access to run credit reports, review references and see business cash flow. Any inaccuracies provided up front will be scrutinized as you begin developing a relationship with a lender. Do not provide information you think Lenders want to see on a questionnaire, as the Connect Lending platform is designed to match you to the appropriate lender based on your criteria. The more accurate and complete the information you provide up front is, the farther it will go in setting you up as a reliable borrower.
Prepare to take risks
For entrepreneurs, you must be prepared and willing to put your own collateral or cash on the table in order to secure a loan. Unless you’re willing to pay the added cost of a large interest rate, large payments, or short terms for repayment, you will need to put your own “skin in the game” to demonstrate you are committed to this business. This shows the lenders you are confident in taking on the risks associated with running your own business, as you are fully invested in making it successful.
Communicate in a timely fashion
You expect lenders to be responsive when making a loan application, as they’re going to reap the benefits of revenue. You should also be responsive to lenders reaching out to you, because your level of responsiveness signals your level of commitment. When asked for additional materials, ensure you’re communicating with the lender appropriately. If materials are not immediately available, let them know it may take you time to gather them. Be as responsive as you can to show you are an involved and committed business owner.
About Connect Lending: Connect Lending was created to bridge the gap between Businesses looking for loans and the Lenders that are actually lending money. The process of simply walking into “your bank” for a loan doesn’t always work or isn’t the best choice for the large number of businesses. Many banks have partnered with us because they recognize that no bank can give the best loan to every single client; it’s just impossible.