Shoreharbor Capital Group, a small-business funding broker in Wilson, North Carolina, works in four steps: learn what the funding must pay for, match it to a structure and to lending partners, let a partner underwrite and decide, then help the owner compare the offer on total cost and schedule. Partners make credit decisions and set rates and terms.
What does a loan broker do, and what does a lender do?
A lender, or a funder in the case of a merchant cash advance, puts up the money, reviews the application, decides and writes the contract. Those four jobs are never the broker's. A broker learns what the business needs, explains the options, and connects the business with lenders that offer the matching product. Shoreharbor Capital Group is a broker, not a lender.
Step 1: Describe the expense
Call (252) 318-3593 or send the short form, which asks only for your name, email, phone and business name. We ask about the purpose when we call you back: what the money will cover, roughly how much it costs, how long the business has been running, and how revenue comes in. Rough figures are fine at this stage.
Step 2: We match the need to a structure and to partners
We compare the six structures against the need: working capital, term loans, lines of credit, inventory financing, equipment financing and merchant cash advances. Then we identify lending partners that offer the chosen structure to businesses like yours, and explain what they are likely to ask for.
Step 3: Partner underwriting and the decision
The partner underwrites the request. Common documents include recent business bank statements, tax returns, a driver's license, equipment or supplier quotes and details of existing debts. The partner may run a credit check; ask whether it will be a soft or hard inquiry before you authorize it. The partner alone approves or declines and sets the amount, the rate or price, the term and any collateral or guarantee.
Step 4: Compare the offer before signing
When an offer comes back, read the entire contract rather than the cover sheet. Compare the total cost, the payment amount and frequency, the term, the collateral, the guarantees and the prepayment terms. Declining is always your choice.
APR, factor or total dollars: comparing offers
Loans are usually quoted with an interest rate and sometimes an APR, which folds certain fees into an annual figure. Merchant cash advances are usually quoted with a factor: the purchased amount divided by the advance. A factor is not an annual rate, and because collection can finish in months, an advance with a modest-looking factor can cost far more per year than a loan with a higher-looking rate. The most reliable comparison is the total dollar cost plus how fast the money must go back.
Warning signs to walk away from
- Anyone who promises approval before a lender has reviewed anything
- Pressure to sign the same day, or before you have read the full contract
- Requests for bank passwords, or for sensitive documents by ordinary email or text
- A merchant cash advance described as a loan, or a loan with no written cost figures
- Blank fields in a contract you are asked to sign
Where to go next
Short answers to common questions are on the FAQ page, the broker relationship is set out in the disclosures, and free, non-commercial help is listed in the Wilson County help directory.
By Shoreharbor Capital Group · Updated