Ravenrock Funding Group, a small-business funding broker in Sarasota, Florida, follows four steps: a call about the expense, a review of your records, a request sent to suitable lending partners, and your decision on any offer. Underwriting, the decision and the pricing all belong to the partner. Ravenrock does not lend and never pressures an owner to accept.
Ravenrock's job and the partner's job
| Task | Ravenrock Funding Group | Lending partner |
|---|---|---|
| Learns the expense and timing | Yes | Later, from the file |
| Reviews records with you | Yes | Underwrites them |
| Makes the credit decision | No | Yes |
| Sets rate and terms | No | Yes |
| Supplies the money | No | Yes |
So what does a loan broker actually do? At Ravenrock: listen, check, match and explain. We never lend, and we never decide.
Step 1: the expense and the timing
We start with what the money is for and when it is due. Payroll in ten days is a different problem from a build-out next spring. We also ask when the matching income usually arrives, because the gap between the two shapes the right structure: working capital, a line of credit, a term loan, inventory financing, equipment financing or, with care, a merchant cash advance.
Step 2: the records
Before any partner sees the file, we look at it with you. Is the entity active in the Florida records? Does the name on the bank account match the registered name or a filed trade name? Are there UCC filings or open advances? Fixing a mismatch first is faster than explaining it later.
- Recent business bank statements
- Entity documents and any fictitious name filing
- Tax returns, when the business has them
- A list of debts, liens and open advances
- Quotes or invoices for equipment, stock or construction
Step 3: partner review
We send the request to partners that write the structure you need. The partner underwrites: it reads the statements, checks credit, weighs collateral and decides. If it makes an offer, the rate, term and conditions are its own. We pass along questions and explain the paperwork, but we do not change the decision.
Step 4: comparing offers
Offers can be stated in different ways. A loan may show an APR and a payment schedule; an advance shows a factor rate and a holdback. To compare them, put the same three numbers side by side: the total you will pay back or deliver, how often payments come out, and how long it lasts. If an offer will not show you the total, treat that as a warning.
Walking away from an offer is always on the table. You owe us nothing for declining an offer.
Warning signs in any funding pitch
- Anyone who promises approval before reviewing your file
- Being rushed to sign before reading every page
- An offer that will not state the total cost in writing
- A request for an upfront payment to release funds
- A contract that calls a merchant cash advance a loan, or a loan an advance
Where to go for free help
Free, independent advice is available from public programs. Our Sarasota-Manatee resource directory explains where to look. Our FAQ answers shorter questions, and the disclosures set out the broker relationship in full.
By Ravenrock Funding Group · Updated