Greenbox Capital CEO Jordan Fein joined Smarter Loans to talk all things alternative business funding. In this short clip, Jordan explains the importance of transparency and communication and shares his #1 piece of advice for small business owners who are looking for funding.
Watch the video, or keep reading below for a full transcript.
SL: What are some things on your end that you’ve seen, perhaps mistakes that borrowers make specifically tied to maximizing the potential of different types of financing? Because oftentimes people obtain financing, but they don’t utilize it to the maximum potential.
JORDAN: I’m going to share a great secret. If you want to get the best possible deal, be transparent and open. People think that if they share information, it’s going to kill their chances. But the way an underwriter will work is as if the biggest risk is the one that you don’t know. So if there’s a gap and they’re not able to figure it out and you’re not communicating, they’re going to assume the worst.
The best thing you can do is say, “look, here’s my situation. Here’s what I’m trying to do.” We’re looking to find a way to fund the company, and I’m speaking for the industry, I’m sure. We’re always looking for a way to fund. We’re not in the business of not funding—we’re in the business of funding. So do your best to be open and transparent and be in communication.
“We’re not in the business of not funding—we’re in the business of funding. So do your best to be open and transparent and be in communication.”
I think some of the things that I see that are the biggest problem is the lack of communication. Be open and be in communication. That is what I would say is the best thing to maximize because if you do, you might be able to get a better offer than what you would’ve got if you didn’t.
It happens all the time. We say, “okay, let’s give a nine or 10 month term or a 12 month term”. And they say, “Hey, blah, blah, blah, blah, blah”. And now that we’ve understood that, we’re able to address the risks and we’re able to maybe make an exception that we wouldn’t have been able to make otherwise. “Oh, the max approval is $100,000 but they only need $50,000? Okay, we’ll give another extra month we were never planning to give”. Why? Because if they’re being financially responsible, taking less [money], maybe we’ll take some extra risks. So that’s an example of being open and transparent and sharing what their objectives are to be able to get what they want. I think that’s very important.
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