Firleaf Lending Group, a small-business funding broker in Bowling Green, Kentucky, takes each request through four steps: a first conversation, choosing the option, a lending partner's review, and comparing any offer. Partners make every credit decision and set rates and terms; the business decides whether to accept.
Broker and lender: two separate jobs
A lender, or for advances a funder, puts up the money, underwrites the business and sets the price. A broker like Firleaf Lending Group sits before that: we work out what kind of funding fits, prepare the request and take it to partners that offer that kind.
Step 1: the first conversation
We ask what the money will pay for, how much it costs, when it is needed, and where the repayment will come from. We also ask how long the business has operated and whether it already has loans or advances. This is a conversation, not an application, and it creates no obligation.
Step 2: choosing the option
The purpose usually decides the option. A machine points to equipment financing; repeating costs to a line of credit; a single gap to working capital; a long-lived project to a term loan; stock to inventory financing. If an advance is on the table, we explain how a merchant cash advance differs.
Step 3: the partner's review
With your agreement, the request goes to partners that offer the chosen option. Partners typically review:
- Recent business bank statements
- Tax returns and financial statements, for larger or longer requests
- The owner's credit history
- Existing debts and liens
- The business's standing with the state and the city
- Quotes or invoices for what is being bought
The documents checklist has the full list, and the Kentucky loan guide covers the state records.
Step 4: weighing the offers side by side
Offers can be priced in different ways, and the headline figure can mislead.
| Pricing | Used for | How to compare |
|---|---|---|
| APR | Many loans and lines | Includes interest and some fees over a year |
| Interest rate | Loans and lines | Excludes fees; ask for the total of payments |
| Factor rate | Merchant cash advances | A multiplier, not interest; compare the total collected |
The fairest comparison is total cost and timing: how much leaves the business in total, and how quickly. Read the full agreement, including collateral, guarantees and prepayment, before signing.
Red flags Warren County, KY owners should watch for
- Talk of a sure approval before any partner has opened the file
- Requests to pay before any offer exists
- A push to sign before you have read the contract overnight
- Offers that quote only a payment, with no total cost
- Blank spaces in a contract
More answers are on the FAQ, and the formal statement of our role is in the broker disclosures.
By Firleaf Lending Group · Updated