The lending environment in Southern Nevada is constantly evolving, which means more options for small-business owners. In the past few years, online nonbank lenders have entered the market, adding more choices and making it as important as ever for business owners to closely evaluate what each lender offers, including the rates and terms of their products and pricing.
Here are five of the top questions to ask yourself as you evaluate lenders in Southern Nevada:
• Do they have a track record of serving local small businesses in our community? When choosing a lender, make sure it has a local team focused on helping small-business owners at every stage, from those starting up and expanding to those looking to transition or sell their business. It can demonstrate the lender is focused on more than booking loans and shows commitment to serving and helping small businesses in Southern Nevada.
• Do they offer comprehensive support? When you’re looking for funding, it’s important to thoroughly research and assess your options. It’s helpful to prioritize those lenders who provide a full array of small-business offerings.
• Do they offer a range of lending options? Right now, you might need a traditional loan, credit card, line of credit, community development microloan, grant or U.S. Small Business Administration-backed loan. But you’ll want a lender that offers a variety of funding options to meet you wherever you are in the business life cycle.
Consider making time to meet with your banker in person to learn more about the various financing options.
• Do they offer fast and convenient lending products? While numerous factors can affect the length of time it takes to get a decision on a small-business loan application, the best lenders make it as easy as possible and keep customers informed throughout the process.
• Are they transparent about terms and pricing? Borrowers should look for a loan product that clearly states its terms and pricing up front. Take time to fully understand how much the loan will cost, frequency of payments and any additional fees associated with the loan. As you pursue credit for your business, be sure lenders provide the interest rate as well as how much you would owe each payment period. Compare all of your options to ensure you’re getting the product that best meets your financial needs.
Obtaining funding for your business may seem challenging, but business owners in Southern Nevada have more options today than ever. It’s important to take the time early on to research and assess all your options so you can determine what type of lender you want to work with and which financing option is best suited to meet your business, and our community’s, needs.
Lester Romero is the small-business manager for Wells Fargo in Southern Nevada.