Bellgrove Lenders, a small-business funding broker in Appleton, Wisconsin, moves each request through four steps: a first conversation about the cost, choosing the funding option, a lending partner's underwriting review, and comparing any offers. Partners rule on each request and price it; the business chooses whether to take an offer.
Who does what
A lender, or a funder in the case of an advance, supplies the money, underwrites the business and sets the price. A broker works earlier in the chain. Bellgrove Lenders figures out which kind of funding suits the cost, helps put the request together and takes it to partners that offer that kind.
Step 1: the first conversation
We ask what the money will pay for, roughly what it costs, when it is needed and how the business would repay it. We also ask how long the business has operated and whether it already carries loans or advances. It is a conversation, not an application, and it commits you to nothing.
Step 2: choosing the option
The purpose usually settles the structure. A machine points to equipment financing, stock to inventory financing, repeating bills to a credit line, a one-off gap to working capital and a long-lived project to a term loan. If you already hold a merchant cash advance offer, we help you put its total cost next to the alternatives.
Step 3: underwriting, explained
Once you agree, the request is sent to partners that offer the option chosen. A business loan underwriter is the person or team at the partner who reviews the request and recommends whether to approve it and on what terms. In commercial underwriting they usually look at:
- Recent bank statements for the business, read for deposits, low balances and recurring debits
- Business tax returns and financial statements, especially for larger or longer requests
- The owner's credit history
- Existing loans, advances and recorded liens
- The business's standing with the state, including its registered name
- Quotes, invoices or bids for what is being bought
Underwriting time varies with the partner, the product and how complete the file is on arrival. A missing statement or a name that does not match across documents slows everything down; our trade name guide covers the naming issue. Free advising before you apply is listed in the Fox Cities help directory.
Step 4: comparing offers priced differently
Offers can be expressed in different ways, and the headline number can mislead.
| Price shown as | What it tells you | What to add |
|---|---|---|
| Interest rate | The yearly cost of the borrowed balance | Fees, the payment schedule and the total repaid |
| APR | Interest plus certain fees, as a yearly rate | The total repaid in dollars |
| Factor rate (advances) | The total to be collected, as a multiple of the advance | How fast it will be collected |
| Payment only | Very little on its own | Number of payments, frequency and total |
The cleanest comparison is total cost and timing: how many dollars leave the business, and how quickly. Read the whole agreement, including collateral, guarantees and prepayment, before signing. Saying no is always allowed.
Red flags worth walking away from
- A promise of approval before any partner has seen the file
- Pressure to pay something before an offer exists
- A deadline to sign today, before you can read the contract overnight
- An offer that shows only a payment, with no total cost
- A contract handed over with sections left blank
A first hire is a common reason for a request; our first-hire post lists the cash-flow questions to answer first. More short answers are on the FAQ, and the formal statement of our role is in the broker disclosures.
By Bellgrove Lenders · Updated
