Importance of transparency in the working capital industry
When applying for a small business loan, it is pivotal that you have confidence in the lender you’re working with. They should exhibit complete transparency, and be honest about your business’s funding options. Check out these four aspects of the funding process that your lender should share with you.
When a small business applies for additional working capital, they are putting their trust in the lender. This trust is not only for their financial needs, but also that their business will be handled in an honest, straightforward manner. With almost 8 years in the working capital industry, Fora Financial has gained a reputation for transparency in business. We know that our customers trust us to provide them with capital that fits their needs, and will help to grow their business in the future. In this post, we’ll explain why it is pivotal for lenders to have financial transparency, and the specific components they should be upfront about.
1. Lending and payback amounts – The lender that you’re working with should be honest about your funding options, from loan and payback amount to term and fees. Each lender will be different, and some lenders providing a small business loan may offer you more options than others. Regardless, you should feel comfortable with the funding amount and term, and not stressed that your business won’t be able to financially handle it.
2. Their previous lending experience – You should be confident in your lender’s previous experience in the working capital industry. Their website should detail the industries they work with, and how they have worked with businesses similar to yours. It will give you peace of mind to know that the lender has helped other businesses similar to your own get small business loans to grow their companies.
3. Funding process details – Throughout your application and funding process, you should be kept in the loop. A trustworthy lender will ensure you are kept up to speed throughout the entire funding process, so that there are no surprises once it comes time to provide you with a small business loan.
4. Other questions or concerns – A responsible lender will be accessible to you, answer questions and address concerns. They’ll provide your small business with one-on-one support, so that you feel content with your decision. If you feel like the lender you’re working with isn’t being honest with you or exhibiting transparency in business, it may be better to cut ties and apply elsewhere.
Receiving additional working capital for your small business can provide you with many new opportunities. The lender you work with should be direct with you when going through the funding process, and provide transparent financial services. Lenders have the responsibility to ensure that the small businesses they supply funding to can responsibly handle the amount they are providing them. Being truthful and exhibiting transparency in business should be a lender’s main priority, so look for a company that exhibits these qualities!