Business funding through a broker moves in four steps: describe the need, match it to a funding type and partners, partner underwriting and decision, and your own review of any offer. Sandland Credit, a small-business funding broker in Grand Junction, CO, handles the first two steps and explains the fourth; lending partners make credit decisions and set rates and terms.
Broker and lender: who does what
| Task | Sandland Credit (broker) | Lending partner |
|---|---|---|
| Talk through the need | Yes | Sometimes, during review |
| Suggest funding types | Yes | Offers its own products |
| Approve or decline | No | Yes |
| Set rate, fees and terms | No | Yes |
| Sign the contract with you | No | Yes |
A broker's value is in the preparation: putting a clear request in front of partners that fund that kind of need, and helping you read what comes back.
Step 1: Describe the business and the need
Call (970) 238-2048, visit 516 Main St, or use the online request form. We ask what the money is for, roughly how much it costs, how the business earns its revenue and how long it has been operating. You do not need documents for this conversation. If the business is new and still registering with the state and city, the Grand Junction, CO registration checklist and starting a Colorado LLC are worth reading first.
Step 2: We match the need to funding types and partners
We work out which of the six funding types fits: working capital, a term loan, a line of credit, inventory financing, equipment financing or, after the others, a merchant cash advance, which is not a loan. Then we send the request to lending partners that offer that type. We will tell you if we think the need is better served by a free adviser, or by not borrowing at all.
Step 3: A partner underwrites and decides
The partner reviews the request using its own criteria and usually asks for documents at this stage:
- Recent business bank statements.
- Business and sometimes personal tax returns.
- Financial statements, such as a profit and loss statement and balance sheet.
- A quote, invoice or contract for what the money will pay for.
- Identification and ownership details for each major owner.
The partner may check business and personal credit. It decides whether to make an offer and on what terms. Sandland Credit cannot influence that decision or promise any outcome.
Step 4: Compare the offer before you sign
If an offer arrives, read the whole contract, not just the summary. Ask for the amount you will actually receive, the total you will pay or remit, every fee, the payment schedule, any balloon payment, the collateral and any personal guarantee. You are free to decline, to ask questions, or to have an accountant or attorney review it.
Comparing APR, factor rates and total cost
Offers state their cost in different ways, which makes side-by-side comparison hard:
- APR expresses the yearly cost of a loan, including some fees, as a percentage. It lets you compare loans with different terms.
- Note rate is the interest rate on the loan itself, which may leave out fees.
- Factor is a multiplier used mostly for merchant cash advances and some short-term products. It shows the total due relative to the amount advanced, but not how fast it is collected.
The most reliable common measure is total cost in dollars alongside the payment schedule: how much you will pay in all, and how much leaves the account each week or month. Balloon payments and short versus long terms both change that picture.
Warning signs in any funding offer
- A promise of approval before anyone has reviewed the business.
- Pressure to sign on the spot, or a refusal to send the contract in advance.
- A request for an upfront payment before any offer exists.
- Blank spaces in the contract, or terms that differ from what you were told.
- No clear statement of the total amount you will pay or remit.
By Sandland Credit · Updated