Commercial Loan Lender Smackdown: Making the Right Choice

First and foremost, you'll need to check the reputation of each commercial loan lender under consideration, particularly smaller lenders that perhaps you've never heard of. Do not hesitate to ask them for references, so that you can find out for yourself how trustworthy, reputable, and reliable they are. Learn as much as you can about the lender's history, company background, and customer service reputation.

Industry Knowledge

Be sure to select a commercial loan lender that has expert knowledge of, and experience in, your industry. It is important that they understand your business and its industry as much as possible, including trends, needs, limitations, and goals. The more the lender knows and understands about your business and industry, they better they'll be able to help you select the right loan for your needs.

Financing Options

In terms of financing, choose a commercial loan lender offering several flexible financing options that can satisfy your current and future requirements. It is important that you can easily access funds when you need them, whether it is right now or in five years.


Loan Types

Continue evaluating each possible commercial loan lender to find out the types of loans they offer, including:

  • Term Loan - Term loans are common commercial loans that can be used for a variety of purposes, including business development, purchases, or simply as capital. Term loans are simple and easy to understand, and are designed to help finance a specific business need. They can be short- or long-term loans that span for months or years, depending on your goals.
  • Credit Line - A credit line is more flexible than a term loan. Business owners do not have to state a specific need for credit line funds; the money is simply available for them to withdraw whenever they need it. Be sure to ask your commercial loan lender which type of credit line is right for you, and try to find the lowest interest rate possible!
  • Invoice Factoring - Invoice factoring is a good option for small companies needed quick cash. Factoring lets businesses turn their invoices into immediate funds. If you know that the money is coming in, but you have customers who take months and months pay their invoices, talk to your financial advisor about invoice factoring and find out if it is a good option for you.