Getting business funding through a broker follows four steps: describe the need, choose a structure, let a partner review, then compare offers. Orchardmark Financial, a small-business funding broker in Scranton, Pennsylvania, handles the first two for Lackawanna County owners; lending partners handle the review and set every rate and term, and you decide whether to accept.
Where a broker's job ends and a lender's begins
A lender reviews an application, makes the decision and supplies the money. A broker does neither. A loan broker prepares the request, explains the structures and introduces the business to lenders or funders that offer the right kind of funding. Orchardmark Financial is a broker, not a lender, and stops at the introduction; the credit decision and every price belong to the partner.
Step 1: Say what the money is for
Phone (570) 512-9977, or send the short form with your name, email, phone and business name. We call back and ask about the purpose: what the funding has to pay for, what it costs, and which income will pay it back. Have a rough idea of monthly deposits and existing debt payments; you do not need documents yet.
Step 2: We match the purpose to a structure
In most cases the purpose settles the structure. A temporary payroll gap points to working capital; a renovation to a term loan; varying monthly costs to a line of credit; stock purchases to inventory financing; a machine to equipment financing. A merchant cash advance is not a loan and is explained separately when it comes up. With your permission, we then send the request to partners that offer that structure.
Step 3: The partner examines the file
Each partner has its own process. Most ask for some of the following:
- Recent business bank statements.
- Business and personal tax returns.
- A year-to-date profit and loss statement and a current balance sheet.
- A quote, bid, lease or purchase order for the project.
- Formation and registration records, including any fictitious name.
- Permission to check business and personal credit.
The decision and any terms are the partner's. Neither the request nor our involvement commits a partner to approve.
LLCs and business loans: what partners check
Yes. Partners lend to LLCs, corporations, partnerships and sole proprietors alike. With an LLC, the partner checks that the entity is properly registered and that the person signing has authority, and it often asks the owners for personal guarantees. Make sure the legal name, any trade name, the bank account and the tax records all match; the Pennsylvania fictitious name guide covers why.
Step 4: Comparing offers
Offers in different structures use different pricing language, so compare them in dollars.
| Term | Used for | What to ask |
|---|---|---|
| APR or interest rate | Loans and credit lines | Total interest and fees over the full term |
| Factor rate | Merchant cash advances (not a loan) | Total to be collected and the collection schedule |
| Total cost | Every structure | Everything repaid or remitted, minus the amount received |
Set each offer's payment schedule against your weakest recent month, and read the default and guarantee clauses before signing. Declining every offer is always allowed. Further questions are covered in the common questions and the broker disclosures.
Warning signs while you shop
- Someone promising approval before a partner has seen a single statement.
- A request for a fee before an offer is made.
- Being hurried to sign a contract you have not finished reading.
- An offer that will not state the total cost in dollars.
- A merchant cash advance described as a loan, or a loan described without its total cost.
Free, independent advice is available too; Lackawanna County small business help lists where to look.
By Orchardmark Financial · Updated
