Finding a Credible Lender

When businesses need funding, there are a plethora of options available. Gone are the days of having to go through a traditional bank to get a strict and conditional loan. These days, alternative lending options have become the preferred choice for small business funding.

The downside of having so many alternative lenders to choose from is that scammers are able to sneak in. When looking for a lender, you’ll want to do some research and make sure you’re going with a reputable, reliable lender. Here are a few ways you can be sure you’re borrowing from a trusted source.

Find Them Across Social Media

While lenders may not necessarily be using social media heavily, a reputable lender likely has some sort of social media presence. If your lender has a website and a website only, that may be a red flag. Look for a LinkedIn business profile, a Twitter account and maybe a Facebook business page. If you see decent engagement, valuable content and consistencies across the board, you may have found a legitimate lender.

Read the Reviews

Reviews can be a great place to get real, honest feedback from consumers who have used the lender’s services. Of course, reading reviews with a bit of skepticism never hurts because there is rarely a rigorous vetting process for who is able to leave a review. However, more often than not, they’re a decent option to at least help inform your decision.

It’s human nature to be quick to leave a review for a poor experience versus a positive one, so if there are a handful of negative reviews, don’t let it deter you completely. If every single review is negative, you may want to look elsewhere.

You can also look to sources like the Better Business Bureau or other accredited, third-party verification sources. Any lender worth looking into will likely have a positive rating on these sites.

Set Up a Meeting

The easiest way to find out if your new potential lender is legitimate is to talk to them, directly. Their website should have some sort of contact option, so set up a meeting or schedule a call and get to know your potential lender first hand.

Alternative lending is a wonderful way to secure small business funding, especially if you’re in a situation where you may not be approved for a traditional bank loan. With a little research, you can find a credible lender and have access to borrowed funds quickly.

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