Firspring Capital, a small-business funding broker in Sioux City, Iowa, works in four steps: learn what the money is for, match it to a funding type, send the request to partners that offer that type, and help you read any offer. Each yes, no, rate and term comes from a lending partner; Firspring Capital puts up no money.
A broker and a lender are different jobs
A lender puts up the money, decides whether to approve, and sets the price. A broker finds lenders that suit the request and prepares the file so they can decide. Firspring Capital is a broker, not a lender.
What a loan broker does, in practice: asks the questions a partner will ask, before the partner asks them; explains the structures; narrows the field to partners that fund that kind of request; and helps you compare whatever comes back.
Step 1: what is the money for?
We start by phone. The online form collects your name, email, phone and business name, three range picks (time in business, annual revenue, amount needed) and consent; the purpose and timing come up when we call. Expect questions like: what does this cost pay for, when will the money come back in, and what payments does the business already make?
Step 2: pair the purpose with a funding type
The purpose usually picks the structure. A defined cash gap points to working capital, a long-lived project to a term loan, repeat costs to a line of credit, stock to inventory financing, a machine to equipment financing. A merchant cash advance is not a loan and is discussed only when you ask about one or hold an offer.
Step 3: a partner reviews the file
Partners usually ask for some combination of these:
- Recent business bank statements.
- Business tax returns and a current profit and loss statement for larger or longer requests.
- A vendor quote or supplier invoice when the money buys equipment or stock.
- The business's legal name and state registration details.
- Owner identification and consent to a credit check.
The partner decides. It may approve, decline, or come back with a different amount or structure. Firspring Capital does not approve, decline or price anything.
Step 4: compare what comes back
Offers can be hard to compare because they use different measures. A loan quotes an interest rate or an APR; a merchant cash advance quotes a factor; some offers add origination or other charges. Bring every offer back to the same figures:
- Total repaid or collected, in dollars, over the full term.
- Payment amount and how often it is taken.
- Collateral, liens and personal guarantees.
- What happens if you pay early, or if you miss a payment.
Turning an offer down is always your call. A broader checklist is in how to get a business loan in Iowa, and what slows each stage is covered in our business loan timeline post.
Warning signs when an offer reaches you
- Promises of a yes made before any partner has opened the file.
- A request for payment from you before any offer exists.
- Pressure to sign the same day or without reading the contract.
- An offer that will not state the total amount repaid or collected.
- A merchant cash advance described as a loan, or a loan described as having no cost.
Formal terms of our role are in the broker disclosures. Short answers to other questions are on the owner questions page.
By Firspring Capital · Updated