Those who own and operate small businesses understand that every dollar counts when it comes to balancing the ledger. Additionally, there are times when you need money on hand but it’s simply not there. Whether you need a loan to help you get by for a few months in a slow season or you need to expand to accommodate growth, small business lenders in NYC can be lifesavers. At Capital Dude, we understand that there’s sometimes a necessity to take out a business loan to meet your immediate needs. However, it’s important to have a certain level of discretion when working with lenders, so we’ve put together a list of some questions you should ask before applying for a loan.
Do you work in my industry?
Every industry has its nuances. If a lender has never worked with a business in your industry, they might not fully understand where you’re coming from by asking for a certain dollar amount, what you need money for, or even why your payment patterns are the way they are. Seek out lenders who are familiar with the work you do so they can fully understand why you’re applying for a loan in the first place.
What documents do you need to see with my application?
Ask early in the process what kinds of documents a lender needs to see to verify your business and its income. This will keep from prolonging the process and stalling at certain stages. This also helps because it can help to ensure that your financial documents are current and up-to-date.
How quickly will I get the funds?
When you’re on a tight budget, knowing when money is coming in can be an incredibly important question. It doesn’t matter if it’s because you’re trying to make payroll for the month or there’s a piece of property that you need to secure, timelines are important. Ask the lender how quickly they can get your money so you can have a budget. This not only makes it easier to plan what’s coming up, but you can ensure that you have the money when you need it.
Do you limit what I can use the funds for?
There are times when you apply for a loan that the lender will try to decide whether what you’re spending the funds on is worth it. For instance, if you run a small film production studio and want to include a new basketball hoop and a skateboard ramp in your expenses with the loan, the lender might not see why this is necessary. What they might not take into account is that you work with a variety of athletic companies and these are necessary for filming B roll and taking stock photos.
Do you charge an early pay-off fee?
It’s not uncommon for lenders to penalize loanees for paying off their debts before the term has matured. This is often done because the lender is losing money on interest so the early pay-off fee is implemented as a way to mitigate some of those losses. Ask your lender if you can pay off your loan early without penalty. If there is a penalty attached, consider that against what other lenders might be offering.
Ask us these and more
If you’re considering working with small business lenders in NYC, speak with our team at Capital Dude. We’re here to help you get the funding you need to get through that slow season or take your business to the next level. Feel free to ask us all of these questions and more when you call our team at 877-485-2779. You can also email us at info@capitaldude.com or send a message via our contact form. We look forward to hearing from you.
