Borrowers…What are You Looking For?
So, your company is acquiring new equipment and you’re ready to search for a lender, loan broker, leasing company or maybe even a supplier financing option. In today’s economy, the choices are many and growing fast. With such a vast array of financing providers how does a business sort them out? Maybe it’s simply a matter of deciding the best fit.
There are certainly any number of traditional big banks in your market, in addition to numerous loan shops, smaller community banks, equipment leasing specialists, internet lenders and captive financing companies. Only you can decide which is best for your needs.
To help you sort them out, start by making these comparisons:
- Do I need a traditional big bank with unlimited capacity or would a smaller community bank or perhaps non-traditional lender provide enough capacity?
- Do I prefer an on-line application or a face-to-face experience?
- Is an existing relationship best or someone new?
- Should I seek a provider with the lowest rate along with possible side fees and charges, or a provider offering a fair rate with no surprises?
- Do I need a quick credit decision (less than ten minutes) or would a processed decision based on mutual respect, trust and communication be fast enough?
- Is this a one-shot deal or is it better to line up future financing with a trusted credit partner for many deals over many years?
- Am I okay with a lender who will plug my company’s financial statements into their credit scoring model or one which will look beyond the numbers and ask questions to personally understand my story?
It all ties back to finding a lender that serves your needs first. How important is pricing? What about trust, timeliness, longevity, integrity, experience? How important is building a future relationship?
There is no right or wrong lender for your business. Most are very good at what they do. So, go find the one that best fits your needs.