Summitreach Capital, a small-business funding broker in Jacksonville, North Carolina, handles the first half of a funding request: understanding the purpose, matching it to one of six funding types and sending it to lending partners. The partner underwrites, decides and sets rates and terms, and the business decides whether to accept. Offers are best compared by total cost in dollars.
What a loan broker does, and what the lender does
A funding broker sits between a business and the companies that provide the money. Summitreach Capital is a broker, not a lender. Our work is the front end: understanding the need, matching it to a funding type, and sending the request to lending partners that offer that type. The partner does the underwriting, makes the credit decision, sets the rate and terms, writes the contract and funds the business.
For a closer look at how a broker compares with going straight to a bank or a credit union, see broker, bank or credit union.
Step 1: Tell us about the business and the purpose
Call (910) 348-5386, visit 614 Court St or send the short request form. We ask what the money would pay for, roughly what it costs, how the business earns its revenue and what would pay the funding back. No documents are needed at this stage.
Step 2: We match the purpose to a funding type and partners
Most needs point clearly to one or two of the six options: working capital, a term loan, a line of credit, inventory financing, equipment financing or a merchant cash advance, which is not a loan. We explain how each candidate is repaid and what partners typically ask for, then take the request to partners that offer that type.
Step 3: A partner underwrites and decides
The partner reviews the business on its own criteria. Typical requests include recent business bank statements, tax returns, financial statements, a debt schedule, identification for the owners and, for equipment, a quote. Many partners check business and personal credit; a partner should tell you what kind of inquiry it will make before you authorize it. The partner may approve, decline or offer something different from the request. Nobody can promise an outcome in advance.
Step 4: Compare the offer, then decide
If an offer comes, read it in full before you sign. Look at the total amount you will pay back, how often payments are taken, the term, any fees deducted at funding, whether there is collateral or a personal guarantee, and what happens if you pay early or fall behind. Accepting is your decision alone, and declining costs you nothing with us.
Comparing offers: APR, factor rate and total cost
Offers describe their price in different ways, which makes them hard to compare at a glance:
- APR expresses the yearly cost of a loan, including some fees, as a percentage. It is the most useful single number for comparing loans with each other.
- An interest rate on its own leaves out fees, so two loans with the same rate can cost different amounts.
- A factor rate is used for merchant cash advances. It is a multiplier applied once to the advance, not a yearly rate, so it cannot be compared directly with an APR.
The common denominator is total cost in dollars: everything you will pay minus the amount you actually receive. Put every offer into dollars and into a payment schedule, and the comparison becomes straightforward.
Warning signs in any funding offer
- Someone promises approval before any review has taken place.
- You are asked to pay a fee before anything is approved.
- Pressure to sign today, or a refusal to give you the agreement to read in advance.
- The total repayment, the payment frequency or the fees are not stated in writing.
- A merchant cash advance is described as a loan, or a loan is described as an advance.
If you see any of these, slow down and ask questions. The owner questions page and the broker disclosures say what to expect from us.
Free help outside the broker
Owners who want independent, no-cost advice can turn to public programs. Free help in Onslow County lists where to start, including the NC SBTDC office that serves the county.
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