So, you need a business loan and you think the process should be fairly straightforward. You decide to start the process by making calls to several banks to ask the one question lenders absolutely hate to answer.

And it will probably go something like this:

You: What is your interest rate?
Banker: sigh It depends
You: Depends on what?

And that’s when the conversation becomes clear as mud on a rainy day. By asking this question up front, you essentially risk your personal reputation and that of your company because no lender wants to start a conversation feeling like they’re just another transaction.

What you really want to know is:

• Are you lending money to businesses like mine?

• How much capital are you willing to lend to my business?

• How much time and work will it take for me to get approved and funded?

• What is this going to cost me?

The problem is that there is no banker in America who can legally answer these types of questions on the first call. Think about it, would you quote your lowest price to a potential client without first finding out more about who that prospect is, what they want from your business, and are they capable of paying for your product or service? Not likely. This is why bankers say the two dreaded words: “it depends”.

What lenders really want to know from you is:

• Why do you need the capital?

• How will the requested capital make your business better?

• How much risk, workload, stress, and time are you going to cause?

• Will this be a good relationship or just another transaction?

Asking about interest rates on initial calls for a business loan can harm your reputation and transaction. Before quoting a rate, lenders need to understand the prospect’s needs and capacities. The process is not a mere transaction but involves knowing the purpose of the capital, how it would enhance the business, the workload involved, and the potential for a good relationship. Improve your chances of loan approval by demonstrating financial acumen and possibly seeking debt advisory assistance.

What are you waiting for? Complete our simple Capital Inquiry form and let’s set up a call right away to learn more about each other. Green Zone Capital Advisors works with companies that value having a business loan expert in their corner to help them throughout the business financing process.