Swiftstead Commercial Capital, a small-business funding broker in St. Cloud, Minnesota, works in four steps: learn what the money is for, match it to a structure, send the request to partners that write that structure, and help you read any offer. Each approval, decline, rate and term comes from a lending partner, never from Swiftstead.
Broker versus lender
A lender supplies the money, underwrites the request and sets the price. A broker does not do any of the three. Our job is to understand the request well enough to send it to partners likely to consider it, and to help you read what comes back. Swiftstead Commercial Capital is a broker, not a lender.
Step 1: the purpose of the money
It starts with a phone call. The online form collects your contact details, business name and three range picks; we ask about the purpose when we call. Expect questions about what the money will buy, when it is needed, what the business already pays each month and how the business is registered.
Step 2: match the purpose to a structure
The purpose usually chooses the structure. A cash gap points to working capital or a credit line; a project lasting years to a term loan; stock to inventory financing; a machine to equipment financing. A merchant cash advance is not a loan and is discussed only with its full cost on the table.
Step 3: underwriting, the partner's review
Underwriting is the partner's process of checking whether the business can carry the payments and what the risk is. Partners usually ask for some mix of:
- Recent business bank statements.
- Tax returns or financial statements for larger requests.
- Proof of registration and ownership.
- Owners' credit history.
- Quotes, invoices or a lease for what the money will buy.
- A list of existing debts and liens.
The partner may approve, decline, or offer a different amount or structure. We cannot change its decision.
Step 4: weigh the offers side by side
Offers are hard to compare because they measure cost differently. A loan quotes an interest rate or APR; an advance quotes a factor. The common ground is dollars: total repaid or collected, minus what you receive. Questions to ask about any offer:
- What will I receive after every deduction?
- What is the total repaid or collected over the full term?
- How often are payments or collections taken, and in what amount?
- What collateral, lien or personal guarantee is required?
- Which events count as default, and what follows?
- Can I pay early, and what does it cost?
Whether to accept stays with you. Short answers to related questions are on the owner questions page, and the timing of payroll against receivables is worked through in our payroll timing post.
Red flags in any offer
- Approval promised before anyone has seen your statements.
- Upfront payments demanded before funding.
- Pressure to sign the same day.
- A second advance offered to cover the first one's collections.
- Contracts with blank fields or missing pages.
Free help outside any broker is listed in Central Minnesota small business resources. Our role is set out formally in the broker disclosures.
By Swiftstead Commercial Capital ยท Updated