With the lending environment being as strict as it is, information about alternative financing options can sound too good to be true. And while it isn’t always the case, sometimes lenders really are offering something too good to be true. We encourage business owners to do their homework and carefully consider a company before jumping on board with their program. Here are a few questions to ask about a lender as you pursue business funding with them.
How long have they been in business?
Longevity tells you a lot about a company, especially in the financial industry. Standing the test of time indicates a tried and true method that is reliable. You don’t want your company’s finances hanging in the balance with a fly-by-night lender. If they haven’t been around that long, just make sure other credentials are in place to give you confidence.
What is their track record?
Look for real-life testimonials from other businesses who worked with the company to get alternative financing. Ask about their success rate. If applicable, ask around in your business community to get a feel for their reputation.
How accessible are they?
While you want to avoid micro-managers, you want to align yourself with a company who will be involved while working with you. Early on pay attention to communication styles and evaluate whether they will contribute to a good working relationship. If the company is out of your area, pay extra attention to this. As questions and issues may arise, you need to know you’ll be able to talk to someone.
If you’ve heard rumors about alternative business financing and you’re unsure about how to proceed, consider contacting Alliance Commercial Credit Group. We have more than a ten-year track record of reliably providing businesses with the funding they need. We have the experience, knowledge and longevity in our industry that mean you’re in good hands. Still have questions? We’re more than happy to discuss your concerns and questions and give you information.