What NOT To Do When Seeking Funding Through A Consultant/Broker

Although many a 'Joe Shmo' think it's an easy job that can be very lucrative, being a loan consultant/broker is not as simple as it seems.

It takes hours of training and learning about the financial industry. You need to understand the ins and outs of funding, lending and investing. (Yes, each term refers to different kinds of loans!)

You also have to be prepared to spend countless nights on the computer pouring over pitch decks and business plans.

Oh, and don't forget the months it takes to form a trusting relationship with a funding source!

So for all you guys and gals seeking financing who would like to work with a loan consultant/broker, I've put together a list of things NOT to do.

It will be helpful to YOU and the CONSULTANT you end up working with.

DO NOT....

1. BE RUDE OR CONDESCENDING: I can hear some of you saying "Duh!!" through my screen. But unfortunately, this is not common sense for some individuals. I don't know why people feel that it's okay to be mean. It is absolutely not acceptable! In the business world, being unprofessional will not get you anywhere. So don't say or send inconsiderate words to someone who is trying to help you.
2. TELL ME HOW TO DO MY JOB: If you skipped my little introduction, go back and read it. This job is not easy. I am the first to admit I've made a mistake or that I don't know the answer to something. But when I'm telling you real, solid information regarding your funding situation, don't you dare tell me I'm wrong!
3. LIE: Again, it sounds like common sense. But it ain't for certain folks! Some people think that I won't find out the truth so it's okay to lie. Others feel that they'll get a better deal if they fudge some facts. In my experience, though, the truth always prevails. So do everyone a favor and be honest from the beginning.
4. HIDE IMPORTANT INFORMATION: During the due diligence process, the lenders will do research on the borrower. Wait, let me rephrase. The lenders will do a deep, hard dive, full-on investigation into the client's past and present. They will fact check every minute detail or piece of information given to them. A problem arises when the borrower conceals certain facts and then the funding source finds out about them during their due diligence. Regardless of whether the data is negative or not, the mere fact that they hid the information can (and oftentimes will) cause the lender to back out of the deal completely!
5. CIRCUMVENT A BROKER: For me personally, I only deal with honest and trustworthy funding sources who would never allow a client to go around me. However, there are crooked lenders who wouldn't bat an eyelash to leave a broker out of a deal - because it means they make more money. Besides being a very devious and wrong thing to do, the funding world is very small and can cause a lot of damage. If word gets around that a specific client has tried to circumvent a broker, NO ONE will want to work with them or lend them capital EVER. I've seen it happen.
6. EXPECT TO GET EXACTLY WHAT YOU WANT: Okay, let me break it down for you real simple. The borrower needs money. The investor has the money. Who calls the shots?? It's not a trick question. In fact, it is sad that I have to explain this to people all the time. Just like I don't like to be told how to do my job, these guys HATE to be told what to do with their money. If you are the one who is asking for the moola, and you don't have any moola to show for yourself, how do you have the right to demand the terms?!?! The lenders/investors will always have the last word. And if you don't like it, you can walk away.