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A natural question to ask yourself when planning your business expansion through an SBA loan is “Should I go to a bank for an SBA loan?” or should I go through a broker/consultant?
Since Business Funding Group (BFG) is a broker/consultant of SBA loans, you might expect us to tell you not to apply directly from a bank—however, the opposite is true!
At BFG, we believe that it’s wise to explore all options that are available to you – and encourage our clients to do what feels right for them!
Through our lender relationships we have found that not only do we get you the funds quicker than if you had gone directly to a lender, but we are also often able to maximize the amount you can borrow.
Key Reason to Apply for an SBA Loan through Business Funding Group
The key difference between going directly to a lender and applying for an SBA loan vs. applying through Business Funding Group is that we have a team of experienced consultants ready to answer any questions you may have.
BFG is usually able to get you pre-qualified for a loan through a 10–15-minute phone call!
All you have to do to prepare is:
- Have an idea of how much you want to borrow and how you want to utilize the funds
- Know how much money your business made this year, this year, and your current debt(s) is
Other key factors you should consider are:
Ease of Process
If you have an existing relationship with your lender, it could be beneficial to leverage that connection – However, much of today’s banking is done online, often without close personal ties to a specific banker.
It can be very difficult to know what your bank’s appetite for an SBA loan is, they might not even have anyone at their offices who can guide you through the process.
An issue many of our past clients have faced when applying for an SBA loan directly from a bank is that the person who is accepting the application is not the decision maker at the bank. We have even had bankers tell us they got paid commissions on applications submitted, not approved or funded loans.
When working with a broker who works with a network of lenders, they will be able to pair you with a lender who is eager to lend to a business such as yours, either by the type of industry you are in, the type of loan you are looking for, etc.
Hands on Expertise
SBA loans, being backed by the government, involve a lot of paperwork. Most banks will give you a list of documents they need, and paperwork to fill out, but will not guide you through how to fill things out.
When you work with a broker, not only will you get much more support throughout the process – we also know the complexities around filling out the paperwork and what the common pitfalls are.
Overall Timeline
Working with a broker usually ends up being faster than applying directly with a lender because they will help you throughout the whole application, take the heavy lifting off you as a business owner working hard to grow your business.
If the lender you decided to apply with denies your loan, you would have to start all over with a new lender, running the risk of repeating a lot of the work.
Rates, Terms and Fees
All the rates, terms and fees associated with getting an SBA loan are regulated by the federal government.
The only additional fee when applying for an SBA loan through a broker vs. going straight to a lender is the referral fee.
Business Funding Group does not charge any up front out of pocket fees – we are a success fee company only; you only pay us if, and when, you get the money!
Contact Us if You Are Considering Approaching a Bank for an SBA Loan
If you have experience with the SBA, are familiar with the process and have time to research which lender would best fit your needs, you should apply directly with a lender.
At BFG, we work diligently to match clients with the right lenders who understand the loan rules and simplify the process. If you are asking yourself, “Should I go to a bank for an SBA loan?” exploring all available lending options could help you make the best decision for your business.
Obtaining an SBA loan through Business Funding Group could save you a lot of time and effort!
Call us today to get more information!