Working with a business funding broker takes four steps: describe the need, choose a structure, let a lending partner review the request, and compare what comes back. Rainhaven Business Funding, a small-business funding broker in Columbia, Tennessee, handles the first two and introduces requests to partners, which make credit decisions and set rates and terms.
What a loan broker does, and what a lender does
A lender or funder puts up the money, decides whether to approve a request and sets the price. Brokers do none of the three. Rainhaven Business Funding is a broker, not a lender: it learns what the business needs, explains which structures fit and introduces the request to lending partners that offer them. The difference matters because only the partner can say yes, and only the partner's contract binds you.
Step 1: the opening conversation
Phone (931) 213-5647, or leave the short form with your contact details, business name and three range picks, and Rainhaven calls back. We ask about the purpose when we call: what the money will pay for, roughly how much, and which income will repay it or, for an advance, from which receipts it will be collected. Nothing needs to be sent at this stage.
Step 2: match the expense to a structure
With the purpose pinned down, the matching structure tends to be obvious. A one-time purchase points to a term loan or equipment financing; a recurring gap points to a line of credit; a short gap to working capital; stock ahead of sales to inventory financing. A merchant cash advance is not a loan and is compared on its total collected. If none fits, Rainhaven says so.
Step 3: partner underwriting
With your agreement, the request goes to partners that offer the chosen structure. Each applies its own criteria. Most look at some combination of:
- time in business and recent revenue, usually from bank statements
- what the business already owes, including advances and liens
- personal and business credit
- the purpose and, where relevant, the collateral
- returns and statements when the request is larger
The partner may contact you directly for documents. Whether an offer follows, and on what terms, is its call alone.
Step 4: line the offers up in dollars
Each offer type is priced its own way, which makes side-by-side reading hard. Put each one into the same three numbers: the amount you receive after any fees, the total you will pay back or have collected, and how long it takes.
| Offer type | Priced as | Turn it into dollars by |
|---|---|---|
| Term loan or line | A rate or APR with fees on top | Adding up every scheduled payment and fee |
| Equipment lease | Payment plus end-of-term terms | Adding all payments and any buyout |
| Merchant cash advance | Factor rate | Multiplying the advance by the factor |
The offer with the lowest monthly payment is not always the cheapest; a longer term can cost more in total. Short answers cover other comparison questions.
Red flags from any lender, funder or broker
- A promise of approval before anyone has reviewed your file
- Pressure to sign the same day or before you have read the agreement
- A request for an upfront payment before any offer exists
- An offer that will not state the total amount you will pay back
- An advance pitched to you as if it were a loan
Free, independent advice is available from the organizations in the Maury County directory, and the broker disclosures set out Rainhaven's role formally.
By Rainhaven Business Funding ยท Updated