Mossdale Lending Group, a small-business funding broker in Pasco, Washington, explains each step of a request: the first call, matching a structure to the cost, the partner's review and your decision. This page also covers what partners usually review, how to compare an APR with a factor rate, how a broker differs from a bank, and warning signs in any offer.
Step 1: a call about the cost
You call (509) 357-1754 or send the short form and we call back. We ask what the money is for, when the cost is due, how your business takes in revenue and whether anything is already being repaid. No documents are needed for this conversation.
Step 2: picking a structure
We match the cost to a structure: a short-term option for a short gap, a longer one for a lasting purchase. The products are explained on their own pages: working capital, term loans, lines of credit, inventory financing, equipment financing and merchant cash advances, which are not loans.
Step 3: the partner reads your file and decides
A lending partner that writes that kind of funding reviews the request. Partners commonly ask for:
- Business checking statements covering recent months.
- The entity record and business license.
- For bigger requests, tax returns or financials.
- Quotes or invoices for equipment or inventory.
- Every debt or advance still being repaid.
The partner decides, and any offer, with its price and terms, comes from the partner in writing.
Step 4: you decide
Read the offer, compare it with other options, ask questions, and accept or decline. Declining costs you nothing with Mossdale Lending Group. Nothing is final until you sign the partner's agreement.
APR versus factor rate: putting offers on one scale
Loan offers usually state an interest rate or an APR; merchant cash advances state a factor rate. The two are not directly comparable. Translate every offer into the same three numbers: the total you will pay back, how often payments leave your account, and how many months they last. Then compare a typical month's payment with a typical month's deposits.
A broker, a bank or a credit union
A bank or credit union lends its own money and offers its own products; many offer business loans to members or customers. A broker does not lend. It helps you shape a request and sends it to partners that write that kind of funding. Going straight to your bank is always an option, and for some owners it is the right first call.
Free help is also available from advisors with no stake in the outcome; the Tri-Cities resources guide lists where owners look.
Five reasons to put an offer down
- Pressure to sign before you have had time to read the agreement.
- No written total of what you will pay back.
- A request for your online banking password rather than statements.
- Promises of approval before anyone has reviewed the business.
- A new advance offered to pay off an advance you took last month.
Short answers to common questions are on the FAQ page; how the broker arrangement works is set out in the broker disclosures.
By Mossdale Lending Group ยท Updated