How to Choose the Right Lender
As members of a large industry, we want to help clients find the right financial partner with the right solutions to help their business grow. With hundreds of different options out there, we are often asked by potential clients “what should I be looking for in a lender?”
We recommend clients look for 3 key characteristics before entering a relationship:
(2) Mutual benefits
(3) Multiple funding options.
For us, those three characteristics are where we spend a lot of our time. Two of our core values are to “be curious” and bring a “win-win” mentality to each prospective relationship. This is to ensure we listen to understand your business, financial situation, and goals so each party benefits at the end of the day. The problem some clients find with other lenders is they only offer one solution. We think it is important for lenders to offer a couple of different solutions because your funding needs can change as your company grows and evolves.
For example, let us assume a company has won new customer contracts that are going to double its revenue, but they need more working capital to fulfill them. In that situation, a bridge loan can be leveraged to purchase more equipment or material to create more products. In a different example, a business could work with a number of suppliers, who often request to be paid faster. In that instance, look for a supplier quick pay program customized to meet your suppliers’ needs. On the contrary, if you have a lot of accounts receivable building up and have slow-paying customers, invoice funding can be a solution to improve cash flow and provide professional invoice management.
All of these examples can occur in just one business and that is why it is important for a lender to offer multiple solutions. This allows you to rely on their relationship and expertise to determine what makes the most sense at that time. If your goal is to grow your company, your lender should want to grow with you.
Kompass Funding offers a full stack of capital and we care about people and their business goals first to determine the right funding solution.