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Submitting the package to inappropriate lenders can cause considerable delays.  Without professional guidance, the average buyer usually takes the loan request to his personal banker.  That quite often results in substantial delays. 

Most banks have definite “footprints” and criteria that determine what kind of projects they will and will not finance.  For example, some banks will consider only projects with substantial real estate for security.  Some will not fund start-up ventures.  Others do not deal with certain types of businesses, such as bars and restaurants.  Many institutions only make small business loans backed by SBA guarantees. 

Unfortunately, bankers generally are reluctant to tell their customers “NO” immediately—even if they rarely handle certain types of loans.  That means eager borrowers often are left “hanging, but hopeful,” for a couple of weeks before being told the project doesn’t meet the lender’s criteria.  Then the hopeful borrower must start the whole process over again, without really knowing the probability of success with the next bank approached.

BFN submits loan applications only to several lenders that actively deal in the industry or the type of business for sale.  The submissions are made simultaneously to increase funding probabilities and to obtain better rates and terms for clients. 

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