Four Criteria for Selecting the Right Lender for Your Business

What to look for in a business lender, and why it’s important to find the best lender and not just the best rate.

The financing options available to smaller businesses have been steadily increasing. The small and lower middle market lending arena is now busier than ever, with a wide spread of lenders keen to promote their individual products. One common mistake is for a CFO to accept the first lender that offers its help, and another is to focus solely on a lender’s interest rate. Below are four key criteria CFOs of smaller businesses may wish to consider in seeking intelligent liquidity for their business.

1. Variety of Funding Options

Small businesses usually have very individual needs. Some lenders try to fit small-business customers into one of their traditional business loan products. By contrast, other more innovative lenders are increasingly offering a wide array of financing choices, and are able to tailor their products to meet the individual needs of their customers.

2. Scalability

In securing appropriate financing, it’s important not only to consider your company’s immediate needs, but also its future needs. Some lenders will tie a company into an inappropriate financing structure that later hampers that company’s growth. The right lender for your smaller business will look ahead and provide financing with sufficient flexibility to support your evolving needs.

3. Partnership and Dependability

In seeking a lender, it’s helpful to regard the relationship as a long-term strategic partnership. The best partners are those who understand your business model well, are dependable, and can offer various loan structures to accommodate changing circumstances—including any financial bumps on the way to profitability or growth.

4. Short Cycle Time

In today’s fast-paced environment, cycle time is critical. This is the time it takes for a lender to complete a financing transaction, from the initial request, to negotiating the terms, to securing necessary documentation, to the closing and funding. A responsive, experienced lender can compress this cycle time and deliver funds more quickly, allowing a company to take advantage of time-sensitive opportunities.

Finding the Right Lender for Your Business

All too often, what small businesses require is a mix of financing, intelligently structured to meet their specific requirements. US Capital Partners Inc. originates, structures, and manages loans, and is able to “engineer” the most appropriate mix of financing for you quickly and efficiently. Often, US Capital Partners is able to increase availability through the discovery of credit enhancers and ways to mitigate credit risks, ensuring you get optimal and custom financing for your business.

To learn more about how your business can secure the funding it needs, email Jeffrey Sweeney, Chairman and CEO, at or call (415) 889-1010.

Jeffrey Sweeney