Why using a Business Financing Broker is Very Beneficial to You:
Our Proven Approach to Servicing Your Needs
Peartree is a full service Small Business Financing Brokerage that has built partnerships with the largest and most reputable financing companies within the industry. Our wealth of knowledge and experience allows us to quickly evaluate a client file and determine which company will provide the “best fit” for financing and get the “APPROVAL” stamp on the file quickly!
We also have the ability to get companies “bidding” for your business which could potentially get you a better rate and save you hundreds or even thousands of dollars!
The problem with going to a direct lender is if you are declined, your personal credit score is effected negatively and you are still without the financing you need. If you apply to 3 or more in any given 30 day period, this has a significant detrimental effect on your credit.
Not all funding companies are the same
In fact, most of the companies that provide Business Financing are quite different in their underwriting policies and guidelines. They differ in the area’s of eligibility, rates and term based on the following:
Length of Time in Business – This varies from lender to lender and can be anywhere from 3 months to a minimum 1 year in business.
Bank Statement Strength – All lenders have a minimum number of negative days as well as NSF’s and varies from lender to lender.
Business Type/Industry – Not all companies fund all business types/industries. While some companies will outright decline certain industries, other’s use the industry type in determining such things as rates and terms. The type of industry that your business is in, can have a dramatic effect on approval, rates and the terms.
Business Location – Not all companies offer Business Financing in all 10 provinces and 3 territories.
Number of Stores – Some companies will combine the total volume of all business locations in determining eligibility while others view each location separately. This can have a dramatic effect on the amount a company is willing to offer.
Business Volume – Each lender uses a different “percentage of gross” factor when determining the maximum eligible amount. Some will lend up to 125% of the total volume while others will only lend up to 60%. Some lenders ONLY use the credit card processing volume in determining funding amount while others will use total sales.
Personal Credit Score of the Owner(s) – Almost every company pulls the personal credit of the owner(s) of the company in order to determine rates, terms, eligibility etc. Depending on the company, you may or may not be declined solely based on your credit score.
Your Lease or Mortgage – Each financing company views this differently. There are companies that won’t allow the merchant to be behind even 1 day while other companies allow as much as 90 days in arrears.
Tax Liens – Some companies will do an automatic decline of a file with a Tax Lien in place while others don’t care as long as there are re-payments arrangements made.
Bankruptcy – Each company views this differently and most will decline any past or present bankruptcy. We have access to lenders that will still fund this type of merchant given some of the other factors in their decision process.
How Our Brokerage Can Help
While the above list serves as the majority of the “Decision Criterion” used by companies, it is not an exhaustive list. Prism takes your file, analysis it and then sends it off to the company that best fits your businesses situation. This process increases your businesses chances of being approved with the first company your application is sent to. THIS PROTECTS THE OWNERS AND THE BUSINESSES CREDIT!
How Can I find out If and How Much my Business Would Qualify For
Simply fill-out the “Free Consultation” form to the right and one of our Business Financing Specialists will get back to you within 24 hours.