Choosing a lender for your small business is one of the most important decisions you’ll have to make as an entrepreneur. The growth and stability of your company may depend on your decision. When done right, your choice will involve much more than getting access to capital. A good lender not only will provide you all the information you need in a transparent and honest way; he will also provide you with ongoing assistance, tools, and resources to improve your financial performance and promote your growth. He has to be familiar with your industry and the peculiarities of your business. In other words, the right lender is a business partner and an ally on your way to success.
How to Approach Your Lender
Take into account these things you should be doing before approaching your selected lending institution. These actions will ease your future loan process:
- Always compare different lenders. There are several points you should compare, including loan features, benefits and of course interest rates.
- Approach your lender before you need the money. Don’t wait until the moment you urgently need funds for your business. You’ll be able to take advantage of everything a financial institution has to offer if you start building a relationship with your banker in advance.
- Keep your financials in order. You should always check your credit score since it’s one of the main requirements for a business loan and will determine the conditions of your future loan.
- You need to have a clear picture of the purpose of your loan. Therefore, before approaching a lender figure out how much you need to borrow. It’s not a good idea to borrow more than your actual needs (it can strain your finances) or less than the minimal amount you need (you won’t be able to cover the investments you want to make).
- Check online reviews. This will provide you with further, real insights about the lender of your choice.
What to Ask Your Lender
As in any other business you approach as a customer, you may need key information from your lender. Don’t hesitate to ask any question: it’s the only way to guarantee you make the right decision. The following list can help you. Make sure you ask your lender the following questions:
- “How many business owners have you helped up to date?” A lender with long experience and lots of success cases will always be a good choice.
- “What’s your experience in my industry?” Even a seasoned lender can make wrong decisions and give inaccurate advice if they are not familiar with your industry.
- “What other services do you provide?” From a variety of resources to webinars and exclusive access to benefits: your lender should be able to offer a wide range of resources beyond access to capital.
- “What’s your availability?” Does your lender provide remote or online assistance? Live chat? Is there a member portal where you can easily check the details of your loan at any time or on the go?
- “What’s your approval rate?” This will let you have an idea of how easy or hard it is to get a loan from your lender.
- “How does the loan process work and how fast can I receive my funds?” Make sure you can adapt to the length of the process and you can receive your funds in a timely manner.
- “Is there any late fee or prepayment fee?” Fees vary widely among lenders. Make sure the lender of your choice is absolutely transparent about the small print of your loan.
- “Do I need to put up collateral?” Not every lender requires collateral to secure a business loan. This could be a crucial factor when choosing a lender that best fits your needs and interests.
- “What are your requirements?” The approval requirements differ from lender to lender. Some will ask you to have been in operations for at least two years, while this could be shorter with others. Your company’s annual sales or your required minimum credit score are other figures that can vary. Check here this list with the most common business loan requirements.
- “What documents do you need from me?” Most lenders will want to see your bank statements, your recent tax returns, or your proof of business registration, among others. Make sure you are familiar with all the documents you’ll need to gather before you start your loan application.
Now, when it comes to the specific business loan you’re applying for, these are the points you should have absolutely clear before you sign the dotted line. Your lender has to be transparent and provide you with this information in written form so you can carefully review it before you make a decision.
- The loan amount you’ll receive: How different is this from the amount you intended to apply for?
- The term of your loan and number of payments: For how long will you be repaying the loan? What’s the frequency of the payments? (most lenders will set up monthly payments, but have in mind that this is not always the case)
- The interest rate you will be paying: Is the interest rate fixed or variable? Is it annual or monthly?
- The total amount of interest you’ll pay during the life of the loan.
- The total cost of the loan: This should include the total interest plus any other fees you could pay during the life of the loan.
- The closing fee and any other fees and penalties you may end up paying: Is there any documentation or processing fee? What about a late payment fee? I there any prepayment fee if you decide to pay off the loan at any time?
- The exact amount you’ll pay every month: Can this amount change at any point for any reason?
- If there is any web site, online account or portal where you can access and review the information above, or check your loan progress?
Camino Financial Can Be the Right Lender For You
Camino Financial can be your go-to funding solution to your business capital needs. These are some of the benefits you’ll receive when applying for a loan with us:
- Convenience: Our online loan process is easy, quick, and takes place from beginning to end online.
- Quick-Turnaround Processing: If you are approved for one of our loans, funding occurs within 10 days.
- Variety of products: Our business loan amounts range from $5,000 to $400,000. You can pay back your loan amount in fixed monthly payments for a total term that varies between 24 to 60 months. Besides a fixed monthly interest rate between 1 % to 2.5%, we charge a reasonable closing fee. No other fees are applied.
- Freedom and Flexibility to Use Funds: Camino Financial has limited restrictions on fund usage.
- No Collateral Needed: Camino Financial small business loans are unsecured. That means you don’t need to put up any collateral to receive your loan.
- Future Loans: After just 9 months making timely payments, you can graduate to a second loan for a higher amount at a better rate.
- Fixed Terms: You know exactly what you pay each month because the annual interest rate and monthly payment stay the same. That way you can avoid surprises and stay on top of your payments.
- Pay Off Loan Early: There are no prepayment penalties when paying off the loan in full before the loan term ends.
- No Credit History Required: Building credit history takes time. We understand many business owners haven’t established a credit history yet.
- No SSN Required: Camino Financial is one of the few lenders that accept applicants who only have an ITIN.
- Knowledgeable Customer Service: Our highly-trained, bilingual staff (English and Spanish) specializes in finding business solutions for our clients.
- Ongoing Education: You have access to tools, resources, and exclusive webinars providing valuable information on finances and business management.
- Personal Contact: At Camino Financial we value our customers and are proud of building long-term relationships with them. At any time, you can contact us if you have any question about your loan or your finances. We are driven by our motto: “No Business Left Behind”.
Before filling out the application, we invite you to use our business loan calculator. This is an excellent tool that allows you to calculate your monthly payments, the amount you’ll pay in interest, and the total price of your loan. That way you can make an informed decision before submitting your application. Simply use the calculator to input different figures and scenarios until you arrive at the numbers and terms you’re most comfortable with.
You can rest assure that Camino Financial helps small businesses achieve long-term financial success. We help pave the way for continued business growth by making the loan process simple and easy. In addition to the benefits already listed, we offer one-on-one business consultations via instant chat, SMS, email or by phone. At no charge, you become a member once you have a loan with Camino Financial. That membership makes available to you up to 20% savings on select business costs like commercial insurance, legal services, tax preparation, and more services. At any time of the day, you can use our library of online financial educational resources designed to help you succeed. And at your request, you can receive our newsletter that arrives weekly in your inbox with helpful tips and timely articles
Don’t wait any longer to apply for a Camino Financial small business loan and experience our exclusive benefits first hand.