New Trends in Business Loans – Being Pre-Qualified

Oct. 4, 2010 - PRLog -- Alternative business lenders and brokers are starting to develop and promote new methods to allow small businesses the ability to pre-qualify for a business loan prior to wasting both their and the lender’s time and energy.

It all got started with fees.  And, it really comes down to fees.  Everyday new business lenders are starting to require upfront fees before discussing their business loan options with potential borrowers.  Fees that were not in place a few years ago.

The reason: Time.  Lenders and their business borrower counterparts are wasting immense amounts of time and energy chasing deals that just do not work for them.

Business borrowers are contacting and soliciting for business loans from lenders whose products or services will not work for them.  Lenders on the other hand are wasting countless hours turning away deals that do not fit their offerings and have no chance of being approved.

In the end, everyone is walking away frustrated and in no better position.

Thus, some lenders started to charge upfront fees as a way to get these potential borrowers to self-select; requiring them to be sure they fit the lenders business loan products or face both a loss of time and money – freeing the lender to focus on deals it would rather chase.

However, these fees are killing opportunities for both parties.  Lenders are seeing fewer deals – deals that might work for them - and borrowers are pulling up stakes and running at the first mention of fees – even if the lender has loan products to meet their needs.

To combat this, many lenders are now using technology to both free up their time and focus on deals they know they can close as well as to help ensure they are not missing out on those diamonds in the rough (those unexpected deals that can make or break a lender).

How?  By allowing businesses to pre-qualify.  Many lenders today have created web based pre-qualification apps.  These application allow borrowers to determine if these lenders will be able to meet their business loan needs without obligation or commitment (and no fees) while allowing the lender to select the deals that fit their lending models without wasting valuable time.

To that note, Business Money Today is now offering several of these new business loan pre-qualification apps on its website.  In keeping with its mission of helping businesses quickly and easily find business loans, these new tools are ideal in creating new efficiencies in the business loan capital markets.

Business owners can now simple input a few basic pieces of information and immediately know if they are pursuing the right financing avenues or simply wasting their time.

What could be better then knowing upfront and in minutes if you or your business qualifies for a certain loan product or for the offerings of specific lenders?

Much better to know what and how much you qualify for then to continuously beat your head against a wall that will never budge.

About Business Money Today:
Business Money Today is designed to help business owners find and obtain capital for their businesses.  Here, they can find information regarding business loans and capital products that are available to them as well as search for companies that offer these products and services – locally or nationwide.  Find better information so that you can make better choices!

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Business Money Today helps business owners find and obtain capital. They can find information regarding products that are available to them as well as search for companies that offer these products and services. Better information, Better choices!