Picking the Best SBA Lender
This is usually possible with banks as well, since most banks offer the 7(a) loan within their packages. However, it is important to ensure that you borrow from an experienced lender under the SBA program.
Lenders who have an impressive track record in the SBA lending program are called “Preferred” lenders. These lenders have special consideration to process a small business loan applications faster, with the help of their long term experience with the same. Besides, they also bring in a large volume of applications. Therefore, it is advisable to narrow your search down to the preferred lenders if possible.
Once you are in the clear about the fact that you are working with a reliable lender who offers the right program for your needs, you can get down to the specifics. Make sure you ask the following questions to see if you have the right partner.
- What are the average loan rates and average loan size?
- Specifically, what is the range of interest rates that they approve for borrowers?
- Are there pre-approval processes involved?
- What is the duration of the revenue-based funding process to be completed?