Choosing a finance company for your business may feel overwhelming amid the sea of options that now exist online and via traditional financial institutions, but it’s also one of the most important business decisions you’ll make when your goal is to find a financial partner that’s committed to supporting your businesses financial health, and ability to grow.
Here are a few tips for small to midsize business owners who may be wondering how to choose a finance company.
Is the company led by those who understand small business financing? Your initial search for an online finance company may begin with the help of a search engine, but choosing a finance company should extend beyond a company’s search engine page rank, or the online marketing tactics intended to draw visitors to their site.
As you vet potential options, research an online finance company’s basic history, including:
- When it was founded, and why
- Whether leaders in the online finance company have expertise in the financial services industry
- If the company has a well-defined mission and vision for the type of businesses they’re equipped to serve
- If the company explains what criteria they use in their application/approval process, and how fees and rates for various types of financing are determined
All of these elements are critical when it comes to choosing a finance company that can provide customized and cost-effective options that align with your business financial reality, revenue cycles and cash flow demands, and future goals.
How does the company compare to other financing options? You’re not the only small business owner to be stumped with questions of how to choose a finance company. For that reason, there are many online resources dedicated to helping entrepreneurs decipher how various financing options are similar, how they’re different, and for what type of businesses they tend to be most appropriate.
Once you’ve narrowed your options to a few potential financing companies, research their names individually in online search engines and on social media. You’ll likely find reviews prepared by reputable small business publications along with published feedback from customers who may own a business similar to yours. The more unbiased research you perform to understand the pros and cons each financing option has to offer, the better empowered you are to determine which feels like the right fit for your unique needs.
Does the online model provide adequate customer support? A secure application process, swift approval, and electronic funds transfer and ease of repayment are all benefits to working with an online finance company. However, choosing a finance company that’s equipped to provide personalized, customized service is critical for business owners who wear many proverbial hats in their business operations (which may include that of chief financial officer).
Not only will choosing a financing company that prioritizes customer service provide you with a more positive experience over the long term, it will help you feel like you’ve partnered with a trusted business adviser. With the support of a knowledgeable financing provider, you can best determine how to leverage various financing solutions for your business based on your challenges and goals — even when that relationship takes place primarily online.