So I was just talking a walk and one of my brokers from another state called me. Long story short they had a deal where a buyer didnt use their recommended lender and went with their own…Long Story short…biz came back undervalued.
Banks are not your friend. Remember they lend money not cause they like you but because they want to make money off you…and despite their positioning of authority (fancy degrees et al) are generally a necessary evil. The product they are selling you is designed to make them money…they dont lend you money cause they love you or love Jesus either.
Just an FYI….shop them and make them compete against each other.
Lenders approved by the Small Business Administration (SBA) vary in their lending criteria and risk tolerance due to several key factors:
1.Risk Tolerance: Each lender has its own approach to risk, impacting the types of businesses and industries they’re willing to finance.
2.Credit Policies: While the SBA sets guidelines, individual lenders may have stricter credit policies based on their experience, portfolio, and risk management practices.
3.Profitability Goals: Different lenders target specific returns, which influences the types of SBA loans they offer and the terms they extend to borrowers.
4.Market Specialization: Some lenders may focus on particular sectors or regions where they have expertise, leading to more favorable terms for businesses in those areas or industries.
5.Regulatory Compliance: Lenders interpret and apply regulatory requirements based on their internal policies, affecting their lending standards.
This flexibility allows SBA lenders to cater to a range of businesses, but it also means loan eligibility and terms can vary widely between lenders.