Many small businesses across the US are going through financial problems as they are having a hard time finding the right financing options they need. Many lenders promise them low rates and long terms but instead they receive high-risk loans with high closing fees and very high factor rates. Sometimes they don’t have much choice and they are pressured into taking cash advances to pay their bills. This leads to them becoming overleveraged, barely surviving the high payments.

Why does this happen? The first problem is that most business owners don’t know how to search for the right lender. They do not have the industry knowledge and expertise to know which programs to target for their business in order to receive the best possible offer. Also, once they start working with someone, most of the time they don’t do any research on the “lender” they are dealing with. Unfortunately most of these “lenders” are just brokers that send the file to a real Direct Lender like Z&R Funding. Small business lending is essential for our economy to flourish and grow but it has to be done right with the right people.

Secondly, many small business owners don’t go over the numbers and agreements they sign themselves and fail to ask questions when confused. It’s very important that when receiving a cash advance, term loan, line of credit or any other financial product, small business owners take their time to understand the terms of the agreement. If something is unclear, every sales representative is responsible to properly explain to their client the terms and the language in the agreement.

Another reason why many small business owners are presented with unsatisfactory offers which ultimately turns them off the entire idea of alternative lending is that the underwriter working on the deal simply misses the ball. Many clients with good credit and good businesses receive bad offers because of strict underwriting guidelines and lack of training and experience working with individuals. Many underwriters fail to properly analyze and asses the risk of small businesses for term loans, cash advance or line of credit because they simply do not have enough real world experience to know and understand how certain businesses operate. They fail to understand the ins and outs of someone’s business by sticking to their one dimensional guidelines and not thinking outside of the box when necessary. This leads to bad offers being given to good clients.

Z&R Funding provides smart offers to small business owners by first carefully identifying the situation the client is in and most importantly identifying what kind of a client he/she is. We make sure that the offers we provide to our clients make business sense and are affordable. We take a careful approach to make sure we don’t overleverage the business and that the offers we present will be beneficial to the small business in the long run. It’s very important to us that our clients are satisfied with our service and that our relationship grows with their business.