Lynxstead Financial, a small-business funding broker in Toms River, NJ, works in four steps: you describe the need, we match it to a funding structure and to lending partners, a partner underwrites and decides, and you compare any offer before signing. Lynxstead is a broker, not a lender; partners make credit decisions and set rates and terms.
Who handles which task
| Task | Lynxstead Financial (broker) | Lending partner |
|---|---|---|
| Talks through the purpose and options | Yes | Sometimes |
| Decides which partners receive the file | Yes | No |
| Reviews credit, statements and documents | Prepares and organizes them | Underwrites them |
| Approves or declines | No | Yes |
| Sets the amount, rate and terms | No | Yes |
| Signs the contract with you | No | Yes |
Lynxstead Financial is a broker, not a lender.
Step 1: You describe the business and the need
Call (732) 786-7606, or send the short online form with your name, email, phone number and business name, and we call you. On that call we ask what the funding is for, roughly how much the job costs, how the business earns its revenue and what debts it already carries. No paperwork is needed for that first call.
Step 2: Choosing a structure and suitable partners
First we settle which of the six structures suits the job: working capital, a term loan, a line of credit, inventory financing, equipment financing or a merchant cash advance, which is not a loan. Then we identify partners that offer that structure to businesses like yours and explain what they are likely to ask for.
Step 3: The partner reviews the file and rules on it
The partner reviews the request under its own criteria. This is usually when documents are requested:
- Recent business bank statements.
- Federal and New Jersey tax returns for the business, and at times for its owners.
- Financial statements, if the business prepares them.
- A quote, invoice or inventory list for asset-based requests.
- Identification and ownership details for each owner.
The partner may check business and personal credit, and it alone decides whether to make an offer and on what terms.
Step 4: Weighing any offer before you sign
If an offer arrives, read the whole contract rather than a summary. Ask for the amount you will actually receive after any fees, the payment amount and frequency, the number of payments, the total of all payments, the collateral, any personal guarantee, and what happens if you pay early or fall behind. You can decline any offer.
Reading cost: APR, factor rates and dollars
Offers express cost in different ways, which makes them hard to set side by side:
- APR states the yearly cost of credit as a percentage, including certain fees, and allows comparison between loans of different lengths.
- A factor rate, used for merchant cash advances and some short-term products, is a multiplier on the amount funded. It is not an interest rate.
- Total cost in dollars is what you pay back minus what you receive.
The most dependable comparison is total cost in dollars alongside the payment schedule: how much leaves the account, how often, and for how long.
Warning signs to watch for
- Approval promised before anybody has reviewed the business.
- Pressure to sign immediately, or a refusal to send the full contract.
- A request to pay a fee by wire, gift card or cryptocurrency before funding.
- Terms in the contract that differ from what you were told on the phone.
- A caller who will not give a business name and address.
By Lynxstead Financial · Updated
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