Starway Business Loans, a small-business funding broker in Valdosta, GA, turns a funding need into a clear request, matches it to a structure and introduces it to lending partners that offer that structure. Partners review the file, make the credit decision and set rates and terms. This page lists the steps, what partners review and how to compare offers.
Broker or lender: who does what
| Task | Starway Business Loans (broker) | Lending partner |
|---|---|---|
| Explains the structures | Yes | For its own products |
| Prepares and routes the request | Yes | No |
| Reviews credit and documents | No | Yes |
| Approves or declines | No | Yes |
| Sets the rate, fees and terms | No | Yes |
| Signs the agreement with you | No | Yes |
A loan broker's job is to save you from sending the wrong request to the wrong place.
The four steps
- You tell us the purpose. Phone us, or send the short form (contact details plus time-in-business, revenue and amount ranges) and expect our call. We ask what the money will pay for, roughly what it costs and how it would be repaid.
- We match a structure. The purpose points to one of six structures: working capital, a term loan, a line of credit, inventory financing, equipment financing or a merchant cash advance, which is not a loan.
- A partner reviews. Once you agree, we pass the request to partners that provide that structure. They may contact you for documents.
- You decide. If a partner makes an offer, compare its total cost and payment rhythm, ask questions, and accept or walk away.
Nobody can promise in advance that a partner will approve, how much it will offer, or what it will charge.
What partners usually review
- Recent business bank statements, often several months.
- Time in business, revenue and existing debt or advances.
- Owner credit history; most partners check it.
- For larger or longer requests, tax returns and financial statements.
- For equipment or projects, the seller's quote, a contractor bid or a lease.
Partners also compare names across documents. The legal name, any trade name and the name on the bank account should line up, and local licenses should be current. Free advice on getting records in order is listed in the Lowndes County resource directory.
Reading offers side by side: APR, factor rate, total cost
Offers arrive in different languages. A loan may quote an annual percentage rate or an interest rate; a merchant cash advance quotes a factor rate; some products quote a fee. The safe common denominator is total cost: everything you will pay, minus what you receive. Then look at the rhythm, monthly, weekly or daily, and at what happens if you pay off early or miss a payment.
A short term with a modest-looking factor can cost more per year than a longer loan with a higher stated rate. Do the arithmetic on every offer before choosing one.
Red flags anywhere in the market
- Talk of approval before anyone has looked at your numbers.
- Pressure to sign before the end of the call, or an agreement you are not given time to read.
- Requests to send bank login details rather than statements.
- A total payback nobody will state in dollars.
More short answers are on the answers page, and the broker disclosures cover the relationship formally.
By Starway Business Loans · Updated