An article on ‘Choosing your Commercial Lender‘ at the www.BusinessZone.com Buyer’s Guide, the lists five steps for a business borrower to consider. The fifth is to ask for and check references. Here are the details:
A standard approach to evaluating any business purchase decision is to check references, and this applies to loans, as well. Have your prospective lender give you contact information for four or five references, preferably businesses similar to yours in size and industry. When you speak to them, ask questions such as these:
- Did the commercial lender treat you fairly?
- Did you get the entire amount you needed?
- Did the commercial lender provide help on your application and paperwork?
- Have you had any trouble making loan payments? If you did, how did the vendor react?
- Would you work with this lender again?
What would your clients say? What would you want them to say?