Thistlepark Credit, a small-business funding broker in Youngstown, Ohio, works in four steps: a call about the purpose, matching the purpose to a structure, a lending partner's review, and your decision on any offer. The page explains the difference between a broker and a lender, what partners review, how to compare offers and warning signs.
Broker vs lender
A lender, or in the case of an advance a funder, supplies the money, underwrites the request and sets the price. None of that is a broker's job. A broker explains the structures, helps shape the request and introduces it to partners that offer what the business needs. Thistlepark Credit is a broker, not a lender, even though Credit is part of the name.
Step 1: the first call
Phone us, or fill in the short form and wait for our call. On that call we ask what the funding has to pay for, roughly how much it costs, and where repayment would come from. Paperwork can wait for now.
Step 2: matching the purpose to a structure
We explain which structure fits and which do not. A gap until receivables arrive points to working capital. A build-out or expansion points to a term loan. Repeated, uneven costs point to a line of credit. Stock points to inventory financing, and a machine to equipment financing. A merchant cash advance is not a loan and is considered only after loan options.
Step 3: the partner's review
With your go-ahead, the request goes to partners that offer the chosen structure. A partner may ask for:
- Recent business bank statements
- Business and personal tax returns
- Profit and loss figures and a balance sheet
- The entity's formation papers and proof of good standing
- A quote, an invoice or the project budget
- A schedule of existing debts and advances
The partner may check credit, approve, decline or ask for more. Each partner's criteria are its own.
Step 4: comparing what comes back
Offers are priced in different ways, so put them on the same footing:
| Pricing | What it measures | What to ask for |
|---|---|---|
| Interest rate | Annual borrowing cost on a loan or line | Fixed or variable, and the total of all payments |
| APR | A yearly cost that includes certain fees | Which fees are included and which are not |
| Factor rate | Multiplier on an advance that sets the total remitted | The total payback and the expected collection period |
Whatever the pricing, the two numbers that decide most comparisons are the total cost and the payment schedule. Stretching the term shrinks the payment but can raise the total. How to get a business loan in Ohio covers the preparation in more depth.
Red flags while you shop for funding
- A promise of approval before anyone has seen your numbers
- Being asked to pay upfront for an application without a written reason
- Being hurried to sign before you have read every page
- An offer that states a daily or weekly payment but never a total
- Requests to send Social Security or account numbers by email or text
Read our disclosures for the formal description of the broker relationship, and the FAQ for short answers on credit checks, LLCs and paying yourself.
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