3 Questions to Ask Financing Companies Before Making Your Choice

Last Updated on November 15, 2017

As you know or will soon discover, there are many financing companies in the marketplace — and probably far more than you expected. This is good news, because it means you have plenty of choices, and various companies will compete for your business and loyalty. Ironically however, this can also present a challenge, because at first glance many financing companies seem to offer the same (or very similar) funding products. And of course, each company claims to be “the best” or “number one.”
When it comes to obtaining critical funding for your business, choosing the wrong financing company isn’t just agitating: it can be devastating, especially if your business is currently facing a serious capital shortfall and time is of the essence. To help you make a choice that that is rewarding instead of regrettable, here are 3 key questions to ask prospective financing companies:  

  1. What is the total cost of borrowing? Some lenders — and banks in particular — will direct you to the APR or interest rate, because it seems relatively low. Frankly however, the interest rate isn’t what matters most here: the total cost of borrowing is what matters. This includes all fees and charges that are either automatically associated with the funding. For example, banks typically oblige borrowers to pay for collateral valuation. What’s more, this fee is due up-front when the loan is executed, and not spread out over the term (i.e. you can’t finance the fees).
  2. What are the terms and conditions? Reputable financing companies will not only clearly and transparently answer this question, but they will proactively share this information with you even if you forget to inquire. This is because it’s not in their interest — and it’s certainly not in yours, either — if you aren’t fully aware and on board with all terms and conditions.Remember: trustworthy financing companies want and need you to succeed, because that means you’ll borrow again in the future when the need arises, and you’ll tell your professional and personal network about your positive experience. Neither of these things will happen if you determine that you were misinformed or misled.
  3. What do your customers say about you? Last but certainly not least: a financing company that is worthy of your business should be willing — make that delighted — to share testimonials and reviews from real customers. And of course, the company should be registered with the BBB and have a stellar rating. If you get any pushback or runaround when looking for testimonials and reviews, then see this as a very big red flag.
Questions to ask financing companies and get the facts

Choose a Financing Company You Can Trust

At National Business Capital, we’re proud to be among the country’s most reputable business financing companies. We openly and transparently share all information before an agreement is made, and unlike many other firms in this field, we never persuade or push customers to borrow more than they need. On the contrary, we work with our customers to ensure that their funding needs are met, and their repayment amounts are affordable and sustainable.

To learn more, contact our team today. Your consultation with us is free, and there’s never any obligation to apply. We don’t “sell” business funding. We build strong relationships that last — and the glowing testimonials and reviews from our satisfied customers prove it!  

National Business Capital & Services is the #1 FinTech marketplace offering small business loans and services. Harnessing the power of smart technology and even smarter people, we’ve streamlined the approval process to secure over $1 billion in financing for small business owners to date.

Our expert Business Financing Advisors work within our 75+ Lender Marketplace in real time to give you easy access to the best low-interest SBA loans, short and long-term loans and business lines of credit, as well as a full suite of revenue-driving business services.

We strengthen local communities one small business loan at a time. For every deal we fund, we donate 10 meals to Feeding America!


About the Author, Megan Capobianco

Megan is passionate about helping business owners along their journey - providing them with relevant content they can use in their day-to-day operations.

Disclaimer: The information and insights in this article are provided for informational purposes only, and do not constitute financial, legal, tax, business or personal advise from National Business Capital & Services and the author. Do no rely on this information as advice and please consult with your financial advisor, accountant and/or attorney before making any decisions. If you rely solely in this information it is at your own risk. The information is true and accurate to the best of our knowledge, but there maybe errors, omissions, or mistakes.