We have all read numerous social media posts written by people who requested finance, and when asked to pay a fee for the service of helping them, they responded with cries of foul play. The Web Lender recognized these people knew in advance that they were not fundable. They claimed they were scammed, but the truth be told, they themselves were (and still are) the scammers.
In working with clients seeking business finance, funders and investors need specific and truthful information.
Consultation with clients needing business finance is work that requires careful, accurate, and attentive dialogue, and takes time. The processing of a funding request, due diligence and other essential duties, need to be completed before a client is introduced to a funding source. This work is a service which no credible facilitator, attorney, or accountant would undertake without first being paid. Attorneys and accountants call it a retainer fee. Facilitators use the term service fee.
The Web Lender is not a loan broker and we do not work or behave as loan brokers. It is important to understand how loan brokers conduct themselves.
Loan brokers project an image to clients that they are the funder, fueling them with false hope. They use words like application, which in and of itself is misrepresentation. They go as far as to discuss, even advertise loans terms, rates, and conditions. Funders use the word application. Funders set terms, rates, and conditions, not loan brokers.
Loan brokers present themselves to funding sources as if they are the client. They try (and always fail) to negotiate terms and conditions as if they themselves are borrowing the money.
After sending their client’s application to every funder in their rolodex, mind you, all at the same time, hoping (praying) one of them will agree to fund, and later finding that all say no, what do they do? They contact other loan brokers who have other funding sources and they send that application to their funding sources, omitting to inform the client there are now two brokers on the deal. This is called co-broking, aka daisy chain, and funders don’t like it. In fact, once they find out, funding is usually declined.
When and if, securing finance for their clients is achieved, loan brokers charge clients a success fee, (sometimes called a referral fee), which typically ranges between 1%-3% of the amount received by the client, and which the client is indebted to pay the broker. (The Web Lender does not charge its clients a success / referral fee). These broker success fees add to the cost the client is paying for his money meaning he is overpaying for the funds he received.
Loan brokers are not required to have and degree whatsoever or to pass any regulated examinations. Many set up shop at home and use non-business (personal) email accounts at gmail, yahoo, or outlook. This is a clear warning to avoid such people.
Recognizing these inferior characteristics of loan broker behavior, The Web Lender created a professional and more efficient method to facilitate the needs of corporate clients needing finance.
We introduce clients to one funder at a time and allow the client and funder to work together with no interference from us whatsoever.
Securing finance is initiated by submitting a finance request form which shows the funding source precisely what your needs are and allows him to understand these needs quickly. Given the quantity of funding requests they receive on a daily basis the average time spent reading these requests is about 8 minutes. Large business plans exceeding 12-15 pages are rarely if ever read.
Due diligence is an investigation or audit of a potential investment or product to confirm all facts, such as reviewing all financial records, plus anything else deemed material. It refers to the care a reasonable person should take before entering into an agreement or a financial transaction with another party. Due diligence confirms a client’s honesty and his presented facts. When this is validated funding is secured. The key to securing finance is to be truthful and factual.
Acquisition Loans, Asset Finance, Bridge Loans, Business Credit Lines, Construction Loans, Corporate Finance, Debt Finance, EBITDA, Equipment Finance, Equity Finance, Factoring, Hard Money Loans, International Finance, Investment Funding, Joint Venture, Mezzanine Finance, Secured Loans, Term Loans, Trade Finance, Unsecured Loans, Venture Capital.
Serving these sectors:
Accommodation, Aerospace, Agriculture, Biotechnology, Commercial Real Estate & Development, Construction, Energy, Entertainment, Health Care, Hotels, Infrastructure Development, IT/Telecommunications, Manufacturing, Mining, Natural Resources, Oil & Gas Exploration & Pipelines, Power Distribution, Power Generation, Power Plants, and Renewable Energy
THE WEB LENDER
We exist to facilitate corporate finance worldwide