Not all lenders are created equal and in the world of business finance, choosing the wrong one can cost you more than just money. From hidden fees to vague promises, here are 5 red flags to look out for when deciding who to trust with your funding.
Vague or Overly “Friendly” Terms
If a lender can’t clearly explain the repayment structure, interest rate, or term length—run. Transparency is key. Avoid buzzwords like “flexible” if they don’t back it up with real detail.
Zero Questions About Your Business
Good lenders ask smart questions about your goals, revenue, and challenges. If someone’s ready to send you money without understanding your business, they’re not investing in your success—they’re betting on your failure.
Pressure to “Act Now”
If you feel rushed, that’s a red flag. Reputable lenders give you time to review documents, compare offers, and ask questions. Urgency tactics often hide unfavorable terms.
Hidden Fees and Fine Print Traps
Always ask about processing fees, early repayment penalties, or admin charges. If these aren’t disclosed upfront or are buried in legalese, the lender may be counting on you to miss them.
No Human Support
If you can’t get in touch with a real person (before or after funding) that’s a bad sign. You want a partner, not just a portal. Choose a lender who’ll be there when things get complicated.
Choose a Partner, Not Just a Platform
At Lendz, we do things differently. We take time to understand your goals, present clear options, and support you through every step, even after the deal is done. No pressure. No surprises. Just funding that fits.
