Rowanwood Lenders, a small-business funding broker in Santa Fe, New Mexico, follows four stages: a call about the expense, a review of the business record, underwriting by a lending partner, and the owner's decision. Each lending partner reaches its own credit decision and fixes any rate and terms. Timing depends on the partner and on how complete the file is.
Stage one: the conversation
We start with the expense, not a product. What does the money pay for, when is it due, and when will the business earn it back? Those three answers usually narrow six options down to one or two. If a request falls outside what partners fund, such as consumer debt, agriculture or trucking, we say so on that first call.
If you used the online form, we already have your name, phone, email and business name, the ranges you picked for time in business, revenue and amount, and your consent. The purpose is the first question on our callback.
Stage two: the record review
Before any partner sees the request, we look at the record a partner will check: whether the business entity is active with the state, whether the tax registration matches the entity name, and whether UCC financing statements from earlier deals are already on file. Sorting out a mismatch here is far easier than explaining it later.
We also list the documents the chosen option usually needs. Working capital and lines of credit lean on bank statements; equipment financing needs a vendor quote; inventory financing needs supplier invoices and sales history.
Stage three: underwriting by the partner
Underwriting is the partner's assessment of whether to fund, how much, and on what terms. A business loan underwriter typically studies deposits and cash flow, credit history, existing debt, time in operation, collateral and the stated purpose. Commercial underwriting for larger or secured deals can add appraisals, lien searches and financial statements.
Underwriting a business loan: how many days? It depends on the partner, the option and how complete the file is. We do not promise a timeline, and nobody else should either; a missing statement can add days on its own.
Stage four: comparing offers and deciding
Offers can arrive in different languages. A term loan or working capital offer usually states an annual percentage rate or an interest rate; a merchant cash advance states a factor rate, which is not an interest rate. To compare them honestly, convert each to:
- total dollars repaid or remitted
- the size and frequency of each payment
- the length of the obligation, or for an advance an estimate based on your receipts
- collateral, liens and guarantees attached
Declining every offer is a legitimate outcome. Nothing obliges you to accept.
Warning signs anywhere along the way
- Talk of approval before any partner has opened the file
- Being asked to pay something before any offer is on paper
- Pressure to sign before you have read the full contract
- A factor rate presented as if it were an interest rate
- Refusal to put the total cost in writing
More short answers are on our FAQ page, and the broker disclosures set out where our role stops.
Free help outside the process
Some owners need advising before funding. Our northern New Mexico directory explains which kinds of free help to look for and how to prepare for a first meeting.
By Rowanwood Lenders · Updated