Whether you are looking at expansion for an existing business or are starting out with a new one, your choice of a lender should be given paramount importance. Your collaboration with your lender could spell the difference between a good decision and a dangerous mistake. Because of the crucial role that a lender plays in the financing of your business venture, choosing one to work with should definitely be taken seriously.
High lending limit
It would be a good move to nail an agreement with a lender who can be your primary source of credit. Having a lender with limited lending capacity may pose problems when you are in the middle of your expansion phase. You would surely not want to have your expansion phase half-baked because your lender has already exceeded his lending limit.
Understanding of the dynamics of your industry
Of course, you would not expect your lender to be well-versed with the intricate workings of the industry you belong to. However, working with a lender who understands the processes you have to go through would be a big help. With this, your lender will be more equipped to support you in your capitalization and financing needs.
Variety in financing terms
Some businesses would do well with 2- or 3- year intervals. However, some would require planning every 5 or 10 years. It is very important for a lender to provide flexible financing terms that will be tailor-fit to your business profile.
Business-oriented lending rather than asset-based loan
A good lender does not look at a loan as an asset that he could chop up and sell in pieces in the future. Instead, he should look at the business as worthy to be funded with.
Indeed, it could be very tricky to spot a lender you will not regret dealing with. Lenders are not just accounts you could source funds from. They are every businessman’s strategic partner.