Is Your Funding Provider Up To Our Standards?

With so many types of business funding available, it can be challenging to identify the best option for your needs. The key is to ask the right questions to determine if your funding provider meets high standards. To help you navigate this process, we’ve compiled a list of essential questions to ask potential business funders. As specialized funding providers, we hold ourselves and our competitors to high standards, ensuring you receive the best possible deal for your business. Here are the hard questions you should be asking your funding provider:

1. Do you need me to submit a mountain of paperwork when requesting an offer?
Traditionally, acquiring funding has been a time-consuming process due to extensive documentation requirements. For example, banks often ask for a large amount of paperwork and certifications for every aspect of your business. In some cases, you may be told that only a few documents are necessary, only to be inundated with additional requests later. This can be frustrating and misleading, adding unnecessary time to the process.

2. Can you give me a firm offer within 48 hours?
Acquiring funding can be complicated and lengthy, often taking months or weeks due to extensive documentation and credit checks. However, waiting for a firm offer doesn’t need to take that long. If your funding provider has efficient processes in place, you should be able to receive a definitive offer in as little as 48 hours.

3. Can I make repayments in line with my turnover?
Many funding providers claim to allow repayments aligned with your turnover, but this isn't always accurate. It’s crucial to ask for specifics about how they determine this percentage and what factors they consider.

4. Does your funding model keep my business’s financial health in mind?
Some funding providers may offer payouts of 150% of your turnover, which can lead to overextending your business due to excessive lending. This often happens when funders base their claims on the previous week’s trading figures, resulting in disproportionate amounts. This is a red flag, as it could inadvertently put your business at risk.

5. Can I expect personalized customer service, or will I just feel like a number?
Your enthusiasm and commitment are vital to your success as an entrepreneur, but some service providers forget how much your business means to you. Interactions in the finance industry can often feel distant and impersonal, whereas they should be the opposite. Building a relationship with your funding provider fosters efficiency and transparency. Ideally, your provider should be as committed to your business's success as you are, ensuring every interaction is personalized and caring.

The Bottom Line
Funding partners should be just that—partners! It’s essential to have open dialogue and for them to answer your tough questions transparently. Merchant Capital provides the right answers to all these vital questions. Our funding products are tailored for retail businesses, our application process is simple and fast, with funding available within 48 hours. We care about your business and ensure that repayments align with your turnover, so you never overextend yourself. Most importantly, you are never just a number—you are an important entrepreneur and a partner in every transaction.

To get in touch with your important questions about how we can fund your ambitious growth, contact Merchant Capital today.

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