LoanBox is the Business Owner's Crystal for Selecting a Lender

LoanBox is the Business Owner's Crystal for Selecting a Lender

Getting it right the first time holds immense value for small business owners. LoanBox empowers entrepreneurs to select the right business loan and lender, from the outset. This is why LoanBox shines for big small business loans, when delays from not getting it right can result in losing out on the deal all together. Use LoanBox to get your big small business loan done right, with the right lender, the first time around.

Each year, thousands of small business owners seeks financing from banks having a low probability of approving their loan. They tend to randomly select lenders that don’t specialize in their industry, business type, or loan amount, mistakenly believing all banks are alike in the context of SBA loans or small business financing, and that the only difference lies in interest rates.

Choosing an incompatible lender is a leading cause of the frustrating and stressful lending experiences faced by many small business owners. So why do entrepreneurs often find themselves on the wrong path, wasting weeks only to have to start over elsewhere? The obvious answer is because most business owners don't have access to a crystal ball. With the launch of LoanBox business owners now have something much more reliable.

SBA Lenders Are All Different, Sometimes Very Different

It’s the lender, not the SBA, that provides the loan. The SBA guarantees it but doesn’t provide the loan. The SBA provides standard operating procedures for banks to follow but also defers certain aspects to the lender’s individual bank policies, and each lender’s bank policies are layered on top of that of the SBA’s rules and procedures. All SBA lenders are different, sometimes very different.

Each SBA bank/lender has different levels of expertise, experience (and therefore comfort level) with different industries, locations and loan amounts. If you’re a a franchise startup seeking a multi-million SBA loan why are you applying with a lender who has never approved a multi-million franchise loan, or a multi-million startup loan, or a loan in your industry, or an SBA loan over $300k for that matter? This is just scraping the surface.

Even more convoluted is each bank has a different combination of dozens of “make-or-break” criteria which if any one of them doesn’t meet the individual bank’s criteria it results in a denial. Many of the basic criteria like loan amount, purpose, location, business age, and credit score are quickly and easily screened for. Other details don’t usually show up until the analyst reviews the loan like DTI, DSC, and debt-to-equity calculations.

So while the loan officer may have been initially optimistic during the application process the business owner finds out weeks later the loan can’t be approved and the owner has to then start anew somewhere else. While some of these banks only waste a week or two instead of two or three but a wasted week or two is too long.

LoanBox is More Reliable Than a Crystal Ball

We utilized our analytics platform to compile the top small business lenders in the country based on a host of different categories and criteria. We collected their approval variables on dozens of components for exactly the type of loan, business, and borrowers they are targeting and the key approval criteria for both general purpose and specific purpose loans.

When you complete your loan package the LoanBox algorithms go to work and you instantly see the SBA lenders you match 100% of their dozens of criteria variables. Select one or all of the lenders to access your LoanBox package from their LoanBox. Interested lenders (they all usually are since you match 100% of their criteria and is exactly who they are targeting) generates loan proposals and the borrower selects the winner, executes the proposal, and continues the LoanBox process to closing, receiving alerts whenever the loan advances to the next process stage.

Getting it right the first time can have immeasurable value with many things to a small business owner. LoanBox helps a business owner get their choice of business loan and lender matched correctly from the outset. It's why LoanBox is for business owners seeking big small business loans, when delays from not getting it right can end up losing out on the deal all together.

Use LoanBox to get your big small business loan done right with the right lender the first time around.

This article is authored by Darin Manis, founder of LoanBox.