Applying for a business loan can involve a lot of research and time to find the right option. You have to determine what type of loan is best, how much to borrow, which lenders you could qualify for and which lender offers you the least expensive option. Not everyone has the kind of time to do the amount of research needed to find the best deals for their situation. That’s where a business loan provider can help.

A business loan provider makes searching for lenders simple. Instead of you reaching out and gathering the details for several lenders and sending in multiple applications, a provider presents you with options and helps you apply. 

A good business loan provider, like Llama Loan, can help you navigate the complex world of business loans to find the best option for your business. However, you also want to be careful not to work with a bad provider that could cost you time, money and even your credit score. Keep these things in mind when you search for a provider.

Why work with a business loan provider?

Business loan providers can save you money in several ways. First, they can help you find the lender that is the best fit for your needs, which can save you money on interest and fees. A provider can access a wide range of lending options and provide advice and guidance. A provider can help guide you through the application process, preventing you from making mistakes. 

Prevent mistakes

It is important to be careful about what business loan you apply to because the terms and conditions of a loan can have a major impact on your business. A loan with high interest rates and fees, for example, can be expensive and can make it difficult for you to repay your debt. On the other hand, a loan with favorable terms and a low interest rate can save you money and make it easier for you to manage your debt.

Taking out a loan that is not well-suited to your needs can cause financial problems for your business and may even put you at risk of defaulting on your loan. The wrong loan can even damage your credit score. If you default on your loan or make late payments, it can negatively impact your credit score, making it more difficult for you to secure financing in the future.

Save money

A major way a business loan provider can help is by helping you compare rates. It can be difficult to look at several options and make sure the parameters of the loans are the same and determine which offers you the best interest rates or terms. With a business loan provider, it is easier to see which loan will save you the most money.

Save time

A business loan provider can help you save time by narrowing down the long list of potential lenders and loan offers to the ones that are most likely to be a fit for your business. This can be especially vital if you have a particular funding need and need the provider to filter potential options.

A provider can also save you time with approval and funding times. Because providers have a relationship with lenders, loans you apply to through a provider can sometimes be approved and funded faster than average. Considering that some traditional loans can take weeks to process and longer to find, a faster timeline could make a big difference in your business plans.

Find the loans you qualify for

Few businesses, if any, will qualify for every possible loan. Eligibility depends on several factors, including how long the business has operated, the business’s credit score, type of business loan, industry, the owner’s credit score and location. A business loan provider can narrow the options so you can focus your search and not sift through options you won’t be eligible for. 

How to research business loan providers?

After you have identified potential providers, it’s time to do a deeper dive into those providers to make sure they have the expertise and services you need. Here are some important factors to consider.

Check the provider’s credentials

Ideally, you want to work with a licensed, experienced provider with a proven track record of success. 

This step is important to ensure that your provider is a legitimate company, not a scam. Confirm that the provider is working mutually with reputable lenders. You can also check with the appropriate regulatory body in your state to verify a provider’s license and credentials.

Make sure the provider can offer the loan you need

It’s important to find out what types of loans a provider specializes in. Some providers focus on traditional bank loans, while others may have expertise in alternative lending options such as SBA loans or online lenders. Many small business loan providers offer help with several types of loans.

Ask about fees and commissions

Some providers charge a flat fee for their services, while others may earn a commission based on the loan you ultimately secure from the lender. Be sure to understand the terms of the provider’s compensation, and make sure that it is reasonable and transparent. Note that legitimate providers do not charge a fee for applying. They will either charge a closing fee after a successful loan or get a commission from the lender.

Read reviews

It’s also a good idea to ask for references from other businesses that the provider has worked with. This can give you a sense of the provider’s reputation and the quality of their service. It may be helpful to ask for reviews from past clients or talk to other business owners about their loan experiences.

Information security

Applying for a loan means disclosing quite a bit of personal information. Loan applications generally involve details like your Social Security number, address, bank account information and credit history.

Make sure that your provider has security set up to keep your information safe. Providers should have a secure online portal for you to enter your information, upload documents and complete applications.

You should also find out the provider’s policy for retaining information. Is all of your information deleted automatically or on request? Do they ever sell information to third parties? Make sure you are comfortable with how the lender plans to use your data.

How does Llama Loan stack up?

Llama loan is a provider for small business loans. Our purpose is to make your loan experience easy and efficient. We’ll help you find potential lenders that match the needs of your business and save you time and money by showing you the most ideal options.

Overall, choosing the right business loan provider can be a challenging process. By researching and asking the right questions, you can find a provider who is experienced, reputable, and able to help you secure the best possible loan for your business.