A prudent small business will price for its products or services based on the (a) input costs of creating that product or services (supplies and materials), (b) cost of running the business (operating expenses), and (c) profit. The same goes for a lender but in a slightly different form. Here are the material inputs that go into how a lender will price a loan:
Running a lending business is an expensive proposition. We have to manage risk, knowing that some of our customers will not repay, we have to manage our expense base efficiently and we have to achieve enough profit to meet expectations of those that provide us with capital.
Fundation combines the benefits of a bank loan with the ease and efficiency of an online lender. We offer conventional loans with competitive rates to businesses with varying credit profiles. Our technology allows us to deliver capital in as few as 3 business days through streamlining the collection and evaluation of customer information and conducting the majority of the lending process electronically. As a direct lender, we use our own capital to originate and hold the loans we make, so that we can focus on building relationships with our customers. Our dedicated customer relationship model enables us to understand each unique borrower’s business. This level of service, coupled with our best-in-class products, is why many of our customers come back to us repeatedly for more capital.