What to Look For in an SBA Lender

It’s no secret that the entrepreneurial lifestyle is one that comes with plenty of freedom. After all, this is one of the primary factors why people choose to become business owners in the first place.

However, not everybody has the available capital necessary to start their own company. When looking for an SBA lender, there are certain factors that you need to keep in mind in order to connect with the one that is ideal for you.

Let’s get started.

How Is Their BBB Rating?

As you might expect, one of the most important pieces of information that you need to consider is the Better Business Bureau (BBB) rating of the lender you are looking to work with. This will provide you with valuable insight into what you can expect from them.

In general, it’s highly recommended that you do not work with a company that has less than an ‘A’ rating. Otherwise, there’s a risk that you may not get the results that you anticipate.

Similarly, you can also check whether or not your prospective lender is a member of any relevant financing groups. If they are, research whether or not they have received any national awards.

How Flexible Are They?

The ideal lender is one who is willing to work with you in spite of any unfavorable attributes and you might have. To clarify, let’s assume that you have a moderate credit score but no loan history.

From a lender’s perspective, you may appear to be a liability. For this reason, some lenders may refuse to work with you entirely.

Fortunately, there are plenty out there who exhibit a significant amount of flexibility when it comes to the type of borrowers they are able to accommodate.

It’s worth noting that you shouldn’t expect to establish ideal terms with a lender if you aren’t a superb candidate on paper. The main takeaway here is that you shouldn’t always assume that you won’t be able to find a flexible lender if you aren’t perceived to be a reliable borrower.

How Is Their Customer Service?

No matter how good the terms of the loan are, you won’t have a pleasant experience if the lender does not exhibit exceptional customer service. This is one of the most important attributes to keep in mind since you will likely have questions or concerns at some point during your loan duration.

The standard for lender customer service includes being accessible by email, phone, and perhaps live chat depending on who you work with. Additionally, you should feel comfortable communicating with them, and they should be more than willing to resolve any conflicts that arise.

Do They Offer the Type of Loan That You Need?

Ironically, many borrowers often fail to check whether or not the lender they are interested in offers the type of loan that they need. For instance, assume that you need a business cash advance for your company.

Since this isn’t a conventional loan, not every lender will offer it. The same can be said about expensive equipment financing or business lines of credit.

The ideal loan option for you will vary depending on your needs. As such, the ideal lender for you will be one who is able to easily fulfill those needs. This will ensure that you have a positive overall experience and don’t have to deal with any unnecessary financial strain.

Are The Terms of the Loan Reasonable?

It’s in your best interest to avoid working with a lender that is unable to accommodate you with their loan terms. But, it’s even more important to avoid lenders that have unreasonable loan terms.

For example, this could include an exorbitantly high interest rate that you simply won’t be able to handle during your repayment period. The same can be said when considering the term of the loan, as some lenders want borrowers to pay back what they owe as quickly as possible.

Unreasonable loan terms could easily place you in a position where you have to choose between paying other financial obligations or paying back the money you borrowed. In the event that you do not pay the money back to the lender, you will likely experience a large number of different complications that could adversely impact you in the future.

Are They Competitive Among Others Lenders?

When looking for the best deal, it’s not recommended to go with the first lender that you encounter. Instead, you should devote a bit of time to research other lenders that may be willing to work with you.

This could easily result in a scenario where you secure a much more favorable loan repayment term and interest rate.

Some lenders may even offer to beat other rates or repayment terms that you were able to secure with other lenders. In practice, this often involves you simply providing proof of what another lender offered, at which point they will adjust the terms they provide you accordingly.

So, keep this in mind when moving forward.

Finding the Right SBA Lender Can Seem Complicated

The above information will ensure that the process goes seamlessly. From here, you will likely find that you have little difficulty in finding the ideal SBA lender for your situation.

Want to learn more about what we have to offer? Feel free to get in touch with us today and see how we can help.