Canyonwick Finance, a small-business funding broker in New Braunfels, TX, works in four steps: a first call about the purpose, matching the purpose to a funding type, a partner's review and decision, and your comparison of any offers. Partners make credit decisions and set every rate and term; you decide whether to accept.
Broker or lender
The lender (or, for an advance, the funder) puts up the money, underwrites the file and names the price. Canyonwick does none of the three. Our work is to understand the need, explain the options and send the request to partners that offer the right type. Owners searching for what a loan broker does usually want to know who is accountable for what. The answer: the partner decides and prices, and you choose.
Step 1: the first call
Ring us, or leave your contact details, business name and three quick range picks on the short form and we ring you. We ask what the money is for, roughly what it costs, when it is needed and where repayment would come from. There is no obligation, and nothing goes to a partner without your agreement.
Step 2: matching the purpose to a funding type
We explain which option fits and which do not. A timing gap points to working capital; a long-lived project to a term loan; repeat gaps to a credit line; stock to inventory financing; machines to equipment financing. A merchant cash advance, which is not a loan, comes up only when the loan options do not fit.
Step 3: the partner's review
With your go-ahead, the request goes to partners that offer that type of funding. A partner may ask for:
- Recent business bank statements
- Business tax returns or financial statements
- A debt schedule
- Quotes, invoices or a lease for the purchase
- Owner identification
- Consent to a credit check
The partner may approve, decline or ask for more. Criteria vary from one partner to the next.
Step 4: weighing any offers side by side
Partners price offers differently, so translate each into the same terms:
| Pricing style | Used by | What to ask for |
|---|---|---|
| APR | Most loans and lines of credit | The APR, the total of all payments and the payment schedule |
| Fixed fee or simple interest | Some short-term working capital products | The total repaid and how often payments are collected |
| Factor rate | Merchant cash advances (not a loan) | The total collected, the holdback or debit amount and the expected period |
Whatever the pricing style, total cost and the payment or collection calendar settle most comparisons. You may decline any offer, and declining costs nothing.
Red flags when shopping for business funding
- Approval promised before anyone has read your statements
- Being pushed to sign before you can read the contract
- A request for payment before an offer exists
- Reluctance to put the total cost in writing
- A merchant cash advance described as a loan
Free, independent advisers are listed in Comal County small business resources. Short answers to common questions are on the FAQ page, and the formal terms of our role are in the broker disclosures.
By Canyonwick Finance · Updated