Top 5 Criteria To Choose a Lender

If you’re asked to exit your bank and move to an asset based lender, how do you know which asset based lender is right for your business? Just as lenders use certain criteria to decide whom they take on as clients, there are certain criteria business owners can use to decide which lender is best for them.

To help you select an asset based lender that best meets your business needs, we’ve listed what we believe are the top 5 criteria to consider before making your choice.

Does the lender:

  1. Understand your business and the problem(s) you’re facing?
  2. Have a history of working through those types of issues?
  3. Create a loan structure that meets your specific needs?
  4. Provide access to decision-makers who will help you in a pinch?
  5. Evoke from you an overall comfort level with the relationship you’ll have with them?

Other things to think about are the size of the lender and the hierarchy of those you’ll have access to. Do you get a sense that the lender will react well if you have a shortfall or if you want to expand your credit line? Are there any covenants or restrictions placed on the business?

The best lender isn’t always the cheapest. Low cost doesn’t equate to being the best for meeting your needs. Remember, your relationship with an asset based lender is temporary. You’ll be returning to bank financing as soon as the business is able which is why lenders who can get you back to back financing quickly are not necessarily the cheapest; they’re the ones who meet the top 5 criteria listed above. Remember, too, when selecting a lender, to check references. Who better to tell you what you need to know than those who have walked in your shoes.

About Celtic Capital
Companies looking for working capital to cover operating expenses, fund growth, increase buying power and take advantage of vendor discounts and rebates turn to Celtic Capital. With an appetite for the more complex transactions, Celtic Capital has a history of success in crafting creative, flexible asset based financing solutions from $500,000 to $5 million with no financial covenants.

As an independent lender, working with companies nationwide, Celtic Capital is willing and able to alter price and deal structure and expand lines of credit to handle its clients’ increased revenues; and when cash flow is an issue, will look toward providing an inventory facility to help offset lost cash flow.

If you know of, or are, a business in need of non-traditional financing, contact Mark Hafner at 800.742.0733 or mhafner@celticcapital.com, or visit us at www.celticcapital.com.