What do you dislike about SBA loan brokers?

May 20, 2024

by an intermediary from Creighton University in Los Angeles, CA, USA

I've heard from various sources that loan brokers are a necessary evil for obtaining SBA funding. What has been your experience with them? How have you gone about securing SBA loans?

1 Like

10 Replies

106 Views

Replies

Reply by a professional
in Richland, WA, USA

My opinion is that brokers bring lots of value. 1) helping you find the right lender for your specific deal. Lenders have different credit appetites and they may not actually share that with you. Brokers have enough deal volume they know the "inside scoop" 2) Getting you to the front of the line with lenders (since they bring so much volume to their lending partners they get more attention for their clients 3) helping you through the process - it really helps to have an advocate 4) to help you actually close and to navigate deal obstacles. This REALLY matters. Especially very proactive brokers who are available in the closing process to help you navigate and overcome problems. Including by calling their lenders and talking to the right people to problem solve. Deals are often messy and it really helps to have someone who works directly for you on the lending side.

Reply by a professional
from Hofstra University in North Carolina, USA

Would not consider them a necessary evil - they get paid when you get financing so they want to help you get the financing - they're usually a great strategic partner in these endeavors and just help you make sure you get your business in a position thats healthy and not bogged down too much with debt payments where you dont have enough cash flow to reap the benefits

I'm not a broker or SBA lender but think that they actually help you work the system to get the financing you need - happy to make some intros if you want - https://calendly.com/dealmavenpm/searcher-acquisitions-sync

+8 more replies.

Join the discussion