There are so many types of business funding out there it can be difficult to identify the best option for your business. Understanding this comes down to asking the right questions in order to ascertain if the funding provider is up to scratch. So we have put together a list of the key questions you should be asking all potential business funders. As specialised funding providers we have very high standards for both ourselves and our competitors so we want to make sure that you receive the very best possible deal for your business. So what are the hard questions you should be asking your funding provider?
Do you need me to submit a mountain of paperwork when requesting an offer?
Traditionally the process of acquiring funding has been notoriously time consuming due to the documentation and associated administrative work. For example, banks require an extensive amount of paperwork and certifications on every aspect of your business. In other cases, you are led to believe that the process only requires a handful of documents, only to be called every two days with additional requests for fine tuning. Not only is this frustrating and misleading but it adds to the time taken to complete the process.
Can you give me a firm offer within 48 hours?
As mentioned above, acquiring funding can be a complicated procedure due to the extensive documentation required and credit checks. This can take a lot of time, which is a scarce commodity for any business owner. But did you know that waiting to receive a firm offer doesn’t need to take months or even weeks. In fact if your funding provider has efficient processes and systems in place, you should be able to receive a resolute offer in as little as 48 hours.
Can I make repayments in line with my turnover?
Many funding providers will say that they do allow you to pay in line with your turnover, but this is not always an accurate representation of their actual process. So it’s vital to ask for details about how they claim that percentage of your turnover and what they use to determine this amount.
Does your funding model keep my business’s financial health in mind?
Some funding providers will offer you a pay out of 150% of your turnover which ends up overextending your businesses due to over lending. This may occur when funders use the previous week’s trading figures to determine the percentage taken, which results in disproportionate amounts claimed. This is a red flag because your funding provider may be inadvertently putting your business at risk.
Can I expect personalised customer service or will I just feel like a number?
Your enthusiasm and commitment is what makes you a successful entrepreneur, but sometimes service providers forget how much your business means to you. When it comes to the finance industry, interactions with service providers tend to feel distant and impersonal, when in fact it should be quite the opposite. Building a relationship with your funding provider creates an efficient and transparent way of doing business. Ideally your funding provider should be as committed to the success of your business as you are, ensuring that every interaction is personalised, considered and caring.
The bottom line
Funding partners are exactly that - partners! So you need to ensure that you have an open dialogue and that they are able to answer your hard questions in a transparent way. Merchant Capital will give you the right answers to all these vital questions. Our funding products are tailor made for retail businesses, our application process is simple and fast with funding available in 48 hours. We care about your business and will never let you over extend by ensuring that repayments work directly in line with your turnover. Most importantly you are never just a number - you are an important entrepreneur and a partner in every transaction.
To get in touch with all your important questions about how we can fund your ambitious growth, contact Merchant Capital today.