Rowanglen Business Loans, a small-business funding broker in Pocatello, ID, moves a request through four steps: a conversation about the need, matching it to a structure and lending partners, the partner's underwriting and decision, and your review of any offer. This page explains each step, what underwriting looks at and how to compare offers.
Broker or bank: who does what
A bank lends its own money, so it can say yes or no and set the price. A broker does neither. Rowanglen Business Loans gathers the facts about your request, explains which structures could fit, and sends the request to lending partners that offer those structures. The contract you sign, if you sign one, is with the partner.
Step 1: Tell us about the business and the cost
Call (208) 439-0428, or send the short form with your name, contact details and business name, and we call you back. On that call we ask what the money has to pay for, how much the cost is, when it is due, and where the repayment will come from. We also ask how long the business has operated and roughly what its monthly deposits look like. No paperwork is needed at this stage.
Step 2: Match the cost to a structure and to partners
Some needs point clearly to one structure, such as equipment financing for a quoted machine or inventory financing for stock. Others could fit working capital, a line of credit or a term loan, and we explain the trade-offs. If a merchant cash advance comes up, we explain that it is not a loan and how its total cost compares. We then tell you which documents the partner is likely to want.
Step 3: The partner underwrites and decides
Underwriting means the partner examining the request to decide if, and how, it will fund. It typically covers:
- Business bank statements: deposits, balances, overdrafts and existing payments. Our bank statement guide covers what reviewers read.
- The entity's status with the Idaho Secretary of State and any UCC filings against it.
- The owners' credit, usually with their authorization.
- Tax returns and financial statements for larger or longer requests.
- Quotes, invoices or stock lists for equipment and inventory requests.
How long underwriting takes depends on the partner, the structure and how quickly documents arrive. Shorter, simpler products usually move faster than large term loans; we cannot promise a timeline. The partner then approves, declines or makes a counter-offer.
Step 4: Weigh the offer, then decide
Read the whole contract, not the summary. Check the amount you will actually receive after any fees, the payment amount and frequency, the term, the total you will repay, the collateral, any personal guarantee, prepayment terms and default triggers. Turning an offer down is always your right.
Comparing APR, a factor and dollars repaid
Loans are often priced with an interest rate and, in many cases, an APR, which folds certain fees into an annual figure. Merchant cash advances use a factor instead, which is not an interest rate. Because the two are built differently, the most reliable comparison is in dollars: how much you receive, how much you pay back in total, and over what period. A shorter period with the same total costs more per year.
Red flags to watch for
- A promise of approval before anyone has seen your records.
- Pressure to sign the same day, or a contract you are not given time to read.
- A request for an upfront payment before an offer is made.
- Blank spaces in a contract, or terms that change between the offer and the signing.
- A second advance offered while the first is still being remitted, against the terms of the first.
Before you call
Short answers to common questions are on the owner questions page, the broker relationship is set out in the disclosures, and free help with business plans and projections is listed in the Southeast Idaho resources guide.
By Rowanglen Business Loans · Updated