When you’re trying to get a business loan online, every lender on the internet claims to have what you need. It’s overwhelming and time-consuming to sort through each claim. But it doesn’t have to be. You can effectively compare different funding companies using review platforms.
Review platforms help you get a clear picture of how lenders really operate through expert analysis and customer reviews. Used correctly, they can act like your own team of secret shoppers. Use these seven tips to strategically compare funding companies through review platforms.
#1: Start with Your Needs
Reviews offer real-world insight into what it’s like to work with a lender, but they won’t tell you what kind of business loan you need. Start your search by figuring out what financing you need with questions like:
- How much capital do you need to borrow?
- Do you need funding in a few hours, days, weeks, or months?
- Do you want a short, medium, or long-term loan?
- Are you looking for fixed or flexible repayments?
- Do you need monthly payments, or can you afford daily or weekly repayments?
- Is this a one-time loan or an ongoing capital need?
- How much support do you want from your lender?
- Are your financing needs industry-specific?
- Do you want to work with a bank, fintech lender, or online funding company?
You may not know exactly which loan product you want. That’s okay. You only need a general idea before diving into a review platform to guide you to a reputable lender. The most trusted working capital providers can help you find the right product for your needs.
#2: Use an Expert Review Platform
Some review platforms ask experts to compare funding companies. At a glance, you can see rankings and ratings for top loan providers. Most expert review platforms include easy-to-read tables that compare each company side-by-side. Looking through these sites can kick-start your search.
Experts for these websites usually include breakdowns about different lenders’ strengths and weaknesses, details about the company, professional recommendations, and even educational material about loan products. It’s a treasure trove of information and expertise open to you.
#3: Strategically Shorten Your List
You don’t have time to dig deep into every funding company on an expert review site. And you don’t need to. Many platforms allow you to filter their recommendations by loan type or funding speed. If you know you’re looking for a term loan or funding within 24 hours, you can use the website to narrow down your options.
When you have a relevant list of funding companies, scan the easy-to-read information, such as headings, rankings, and stars. Look for companies rated first for customer service or at the top for lending in your industry. Take note of which ones catch your attention or match your financing needs.
Filtering and scanning the information can shorten the list of funding companies from more than 20 to 10 or fewer. Now you can dive into the expert information for each lender without wasting your time.
#4: Set a Level Playing Field
As you research prospective funding companies on expert review platforms, you need information you can use to compare them. You can level the field by comparing similar lenders and products and standardizing rates.
Comparing similar lenders should be like comparing apples to apples. Look for lenders offering the capital you need and weigh them against companies that provide similar products. You’ll learn more relevant information than by contrasting a merchant cash advance (MCA) provider and a traditional term loan lender.
Different funding companies and loan products write their rates differently. For example, an MCA uses a factor rate while equipment leases use interest rates. Standardizing numbers is the best way to compare lenders and products. Use an online calculator or ask a financial advisor to change all rates and fees into an annual percentage rate (APR) so you have a single number to represent borrowing costs.
#5: Search a User-Based Review Platform
Once you’ve gotten expert opinions and found options suited to your needs, move to a user-based review platform. These are the websites where business owners and clients share their experiences.
If you know how to interpret the stars and comments, you can use this third-party information to make sure funding companies live up to their claims. Here’s what you are looking for:
Consistent Experiences
The patterns in rankings and experiences will tell you more than one-off stories. Look at how many high and low star ratings a company has. If a company only has 5-star ratings or 1-star complaints, that’s a sign to dig deeper and be cautious. The lender may only excel in one industry or have significantly improved.
Looking at rankings over time is another way to see a company’s patterns. They may have had many bad reviews a few years ago, but only positive experiences more recently. Or they might have a strong reputation but have recently fallen short. Sorting reviews by timestamps can help you understand their current level of service.
Read through reviews to see if multiple people say the same thing. You may find that everyone has issues with poor customer service. Or they may verify that the lender delivers funds in a few hours. Whatever most people experience with a funding company is what you will likely also get.
Relevant to Your Needs
Look for reviews from businesses in your industry or owners who used the loan product you’re interested in. It’s a good sign if the lending company has many positive reviews from clients in a similar situation. But if none of their borrowers have mentioned your industry or financing option, they may not be the funding partner for you.
Clarity Around Fees and Terms
Pay attention to how reviewers discuss the funding company’s transparency. If many say, “The terms were exactly what they promised,” that’s a great sign. You want lenders who clearly explain the costs and loan structure.
#6: Look for Company Responses
Many lenders are friendly until the contract is signed. The best companies offer ongoing support even if you hit a rough patch. Reading customer complaints and reading how the company responds provides insight into its transparency and communication.
Consider three different lenders who face customer complaints about their funding speed. One doesn’t do anything. One takes responsibility and helps resolve the issue. Another responds with a standard deflection. Which funding company will be there for you if things go wrong or you have questions?
#6: Create a Personal Shortlist
Looking at customer reviews should shorten your list even more to six or fewer lenders. Rank those lenders based on their value to you. It’s easy to focus on borrowing costs, but the lowest price isn’t always the best deal. A funding company that delivers faster funding, greater transparency, and real partnership, even with slightly higher charges, could be exactly what you need.
#7: Pay it Forward
Business owners rely on review platforms to make crucial decisions, and those platforms rely on clients sharing their experiences. Whether it was a massive headache or a dream come true, go back and leave a review. It helps the next person in your shoes.
Find Lenders You Can Trust
While online funding companies allow you more and faster access to business loans than ever before, you have to navigate the wilds of the internet to find reliable financing partners. Review platforms offer a clear path through the chaos. They can direct you to funding companies you can trust.