Importance of Choosing the Right Business Loan Broker in the current economic climate, banks have tightened their lending standards for many reasons, partially due to the aftermath of both the pandemic and the Silicon Valley Bank collapse.
The decline in lending has impacted businesses looking to secure commercial loans, including commercial real estate loans, which has caused difficulties for business owners to get the funding they need to grow or sustain their businesses.
This is where business loan brokers come in as a positive solution for business owners seeking financing options.
Understanding the Current Economic Climate and the Impact on Business Loans
Yahoo Finance recently reported that bank lending in the United States has slumped most since the 2008 financial crisis. According to Yahoo, banks are tightening their lending standards due to the economic uncertainty brought on by the pandemic, not to mention the recent Silicon Valley Bank Collapse.
This has resulted in the decline of business loans and commercial loans, which has impacted businesses of all sizes, from startups to established businesses.
If you are a business owner seeking financing options but are finding it challenging to secure loans from banks due to stricter lending standards, you are not alone. At Innovative Capital, we have had business owners and real estate investors come to us to seek alternative financing options. Since we have a wide and varied network of referral partners, private lenders, and just about any finance option available under the sun, we are able to help. If you are seeking funding and are having trouble with the bank, reach out to our team.
Who Are Business Loan Brokers and What Is Their Role in the Lending Process?
Business loan brokers serve as the middlemen between lenders and borrowers, helping businesses and real estate investors secure funding when they are seeking funding outside of a traditional bank.
At Innovative Capital, we work with a network of lenders, including traditional banks, P2P lending, private equity, and alternative lenders to name a few, in order to find the best financing options for our clients. See examples of commercial loan types we can broker here.
When a client comes to us, we thoroughly assess their financial situation, business history, and the overall health of their business, to determine which lenders are the best fit for their specific needs. Then, we submit the client’s application to multiple lenders and negotiate the best terms to allow our clients to choose the best option.
Why Choose a Broker Over a Bank?
A huge benefit of working with a broker like ICC over a bank is the expertise that we provide. Our team thoroughly understands the lending process and has extensive experience working with a variety of lenders to secure funding for their clients across various industries.
We consider ourselves a “loan concierge.” At Innovative Capital, we guide you through the entire lending process and negotiate the best terms and rates before presenting options. The best part? If you do not choose to move forward with one of our deals, we do not take a fee.
The Importance of Choosing the Right Business Loan Broker
While working with a business loan broker can provide many benefits, it’s essential to choose the right broker for your business. Look for a broker with experience in securing financing for businesses in your industry, and one who has a proven track record of success.
It’s also important to choose a broker who is transparent about their fees and can provide clear and concise information about the financing options they are presenting. A good organization will be upfront about the costs associated with their services and will work to find financing options that are affordable and meet their client’s specific needs.
We are experiencing a volatile lending market. Business owners are having trouble securing financing from traditional banks due to stricter lending standards.
Innovative Capital can provide a positive solution for business owners and real estate investors seeking financing options.
Get in touch with us to request a free quote and one of our team members will get back to you shortly.