26
February
2019

4 Signs that You’re Working with the WRONG Business Lender

Business Funding - 2 Min Read

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Qualifications: In business for at least 9 months with at least $120K in sales over the past 9-12 months

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In every industry – and the alternative lending marketplace is no exception – there are businesses that operate with professionalism and integrity, and those that are simply out to “make a buck”, and will do or say almost anything to make that happen.

Naturally, here at Mulligan Funding we proudly consider ourselves the former. After all, we’ve been in business since 2008, and have helped thousands of businesses keep their businesses strong – and in some cases, keep them alive. We wouldn’t be here if we took short cuts, or did things the wrong way.

However, we are aware that some firms in our marketplace aren’t as dedicated or disciplined as we are. Here are 4 signs that you are (or are on the verge of) working with the WRONG business lender:

1. They want up-front payments.

If a company, broker or consultant demands an up-front payment, then walk away – or better yet: RUN! There is no reason that you should pay a penny to have your application processed or evaluated, or for any other services credit checks, registration fees, and so on.

2.  They don’t have an actual office you can visit.

While millions of businesses operate “in the cloud” or virtually – including many of our own customers – you may want to check that your business lender has a physical office that you can visit if you wish. If they don’t have one or are vague and evasive about telling you where they are, then this is a huge red flag. Again, run — don’t walk away.

3. They make ridiculous promises.

Hopefully, your business funding partner (whether it’s Mulligan Funding or any other reputable company) will provide you with some uplifting and inspiring information – such as the fact that you don’t have to secure your loan with collateral, the application evaluation process takes 48 hours or less, and many other advantages.

However, these positive benefits are a far cry from some of the ridiculous and outrageous promises that some business lenders make. As you know from being a seasoned business professional: if it sounds too-good-to-be-true, then it almost always IS. At the very least, be sure to perform your due diligence, ask tough questions, and trust your instincts.

4. They want to loan you more than you need or even want.

This is a tricky one, because on the surface, a business lender that offers you $200,000 when you only need $100,000 may seem like they’re on YOUR side. But that’s not the case.

They want to lend you more than you need for two reasons: so they can generate more interest from you, and because it’s cheaper for them to administrate (why loan $100,000 to two customers when you can loan $200,000 to one?).

Never fall for this tactic! A reputable business funding partner will help you identify the right amount to borrow. And if you need additional funds down the road, that same reputable business lender will work with you to make that happen – and WITHOUT charging double fees.

The Bottom Line

At Mulligan Funding, we’re proud to say that we have never done any of the above – and we never will. Yes, we’re a business and we have staff salaries to pay, overhead to cover, and reasonable rates of profit to generate. But we aren’t in this for the short-term. Helping small and mid-sized businesses thrive – and in some cases survive – isn’t just our profession. It’s our passion!

Call Mulligan Funding at 855-326-3564 to discuss your financing options today!

The information shared is intended to be used for informational purposes only and you should independently research and verify.

Note: Prior to January 23, 2020, Mulligan Funding operated solely as a direct lender, originating all of its own loans and Merchant Cash Advance contracts. From that date onwards, the majority of funding offered by Mulligan Funding will be by Loans originated by FinWise Bank, a Utah-chartered Bank, pursuant to a Loan Program conducted jointly by Mulligan Funding and FinWise Bank.