Oakwick Lending Group, a small-business funding broker in Concord, NC, works in four steps: a call about the purpose, matching it to a funding type, sending the request to suitable lending partners, and helping you compare any offer. Partners make every credit decision and set rates and terms; you decide whether to accept.
Broker or lender: the difference
A lender, or a funder in the case of an advance, provides the money, underwrites the request and sets the price. A broker does neither. Our work is to understand the need, explain the options, choose partners that offer the right structure and present the request clearly. Oakwick Lending Group is a broker, not a lender.
Step 1: the first conversation
You call, or send the short form with your name, email, phone and business name, and we call you. On that call we ask what the money should pay for, how long the business has operated, roughly what it brings in and when repayment would come. No documents are needed yet.
Step 2: matching the need to a structure
We say which funding type fits and why, and which do not. A timing gap points to working capital or a credit line; an upfit to a term loan; stock to inventory financing; a machine to equipment financing. An advance comes up only after loan options have been weighed. We also tell you what partners usually ask to see. Nothing is sent anywhere without your agreement.
Step 3: the partner's review
With your go-ahead, the request goes to lending partners that offer that structure. A partner may ask for:
- Recent business bank statements
- Business and personal tax returns
- A profit and loss statement and balance sheet
- Formation documents and proof the entity is in good standing
- A quote, invoice or project budget
- A list of existing debts
The partner may check credit, decide, decline or ask for more. Criteria differ from partner to partner.
Step 4: comparing what comes back
Offers are not priced the same way, so compare them on the same footing:
| What it is | What to ask for | |
|---|---|---|
| Interest rate | The yearly cost of borrowing on a loan or line | Whether it is fixed or variable, and the total of all payments |
| APR | A yearly cost that folds in certain fees | Which fees it includes and which it leaves out |
| Factor rate | A multiplier on an advance that fixes the total collected | The total payback and the estimated collection period |
Whatever the pricing style, the two numbers that settle most comparisons are total cost and the payment or collection calendar. You can decline any offer.
Warning signs during any funding search
- A promise of approval made before anyone has looked at your numbers
- Requests for an upfront payment to process an application, without a written explanation you understand
- Pressure to sign the same day or before you have read the whole contract
- Offers that quote only a daily or weekly payment and never a total
- Being asked to email or text Social Security or account numbers
Free, independent advisers are listed in Cabarrus County small business resources. Short answers to common questions are on our FAQ, and the broker disclosures describe the relationship formally.
By Oakwick Lending Group ยท Updated