There are plenty of companies which work as lending specialists. These lending specialists help all types of small businesses in obtaining different financing required. Lending specialists or these financial services help in matching borrowers seeking loans to the lenders. These companies work by receiving a referral fee once the loan agreement is complete. Even though the government is offering all kinds of specialized loans for small businesses, sometimes they even need help from these financial services or brokers. These loan brokers help to obtain the loan quickly and on time and they make the process hassle-free.
Why Loan brokers?
These loan brokers are an alternative for financing from traditional banks. In most cases, small businesses find it hard to obtain loans from banks since it has to go through several steps and it takes a lot of time. It is said that over 50 percent of the small businesses will need some kind of financing every year. But among them, only less than 30 percent of the small businesses get approval for loans from banks. There will be one or other constraints that make the remaining small businesses not get approval from a loan from the bank. So, where should they go and how they should get their finance. This is where loan brokers play a major role.
They come in and help small businesses to get the finance they need. They make the loan process less complicated and they make sure small businesses are getting everything they needed.
Loan brokers and their role
These loan brokers are tied up with many partners. They make the loan process less complicated because most of their partners are not traditional banks. This is the main they offer less stringent loan processes for small businesses. These partners offer loan requirements that will be simple and straightforward. They consider many other factors other than basic financial evaluation metrics commonly followed by traditional banks. This is the reason small businesses find it easy to complete and submit the loan requirements. More than that, loan brokers will also be there for any help.
Most of the loan brokers expect that the small business applying for finance should be operational at least for two years. Apart from that, they may expect small businesses to generate a minimum of $10,000 in revenue every month. Prospective borrowers like small businesses contact these loan brokers and they match them with lenders. Loan brokers work as loan-matching service for these small businesses. The best part is, these loan brokers offer a single loan application and once this is filled, the application will be submitted to multiple lenders. Being a small business owner you need not contact and apply multiple lenders yourself. Loan brokers play a major role in the loan application and they take care of the big percentage of the loan application process.
Loan brokers-Do they offer loans?
No, loan brokers don’t offer or make small businesses loan. They are not lenders but they can be called loan facilitators. Loan brokers provide an online platform that helps in connecting with lenders. They play a major role in matching potential lenders and loan seeking borrowers. Along with that, consultants or lending specialists in the loan broker team help in evaluating and exploring different financing and loan options available for borrowers. With their help, it becomes easy for borrowers to find a loan or financing option.
The consultants even assist borrowers in every step of the loan application process. These consultants play a major role in submitting the loan application to the appropriate lending partner. These loan brokers will have established a relationship with multiple lenders and it helps them to coordinate with them easily. In most of the cases, the borrowers are connected to at least three different lenders.
Types of Financing Offered
Loan brokers offer small businesses with all possible types of financing options. They offer term loans in the standard range like from $25,000 up to $500,000. The best part is they provide a loan repayment period of 1-5 years. This is the most common type of loan available for small businesses. But, along with term loans, they even offer other financing options. There will be an option to opt for short term loans for example loan amount of up to $250,000. These short term loans should be paid back over 3-18 months.
Loan brokers also assist small businesses in applying for loans offered by the government. Small businesses can request loan brokers help in applying for a loan and financing methods offered by small business administration or SBA. SBA loans are commonly available in the range from $5,000 to $5 million. The loan repayment period with these loans will be usually from 5-15 years. Loan brokers come in to help in the loan application and they streamline the loan application process of SBA loan. This is the reason SBA loans will be in the hand of borrowers within 30 days.
Loan brokers also open opportunities for business line of credit. This is another type of financing and small businesses can take their assistance for this financing type as well. They may even assist and offer other financing methods like account receivable or invoice receivable financing. For this method account receivable of the company may act as collateral for the loan.
Yes, these loan brokers but 75 Capital LLC has a ZERO FEE. We work with you to make sure you get the best rate possible.
Even though the government offers varieties of loans and financing methods for small businesses, the application process will be a little complicated. This is the reason; the majority of the small business owners seek help from loan brokers. The loan brokers assist them in loan processes like SBA loans. Apart from this, they also match the loan seeking borrowers with other third party lenders. Since loan brokers streamline the loan application process it becomes easy for the borrowers to get the loan in the expected time. A single loan application from the borrower will be submitted to the multiple lenders. Loan brokers assure that loan agreement happens on time and as per the needs of borrowers.