Financier and CEO Nimi Natan Presents the Borrower’s Playbook: What to Do (and Not to Do) When Choosing a Financial Partner

Choosing a lender is one of those business decisions that looks simple until you are in the middle of it. The money matters, of course, but so does speed, experience, communication style, and whether the lender actually understands what you are trying to do. This means that instead of jumping at the first offer, it can be beneficial for borrowers to weigh their options carefully to find the right partner. 

Nimi Natan has spent years around complex transactions before focusing on small-business lending at Gulf Coast Small Business Lending, so he is used to thinking in terms of fit, structure, and execution. That background matters here because his advice is not about selling a product. It is about helping borrowers avoid bad matches and being a lender who funds transactions he believes are the best option for the borrower. As Gulf Coast Small Business Lending’s materials also note, Small Business Administration (SBA) lenders are not all alike, and the borrower who understands that early usually saves time later.

Here are his do’s and don’ts when it comes to choosing a financial partner.

Do cast a wide net, but narrow it fast

You should not grab the first term sheet you receive, he says. Start by looking broadly. Talk to your accountant, attorney, wealth manager, insurance contacts, and industry peers. Ask them who actually closes deals in your specific market and who has a reputation for reliability.

Once you have a list, cut it down to three or four serious contenders, Natan suggests. If you are looking for an SBA lender, you need to actively check their credentials. Gulf Coast Small Business Lending strongly recommends looking for a Preferred Lender Program (PLP). A PLP lender has the delegated authority to make underwriting decisions on behalf of the government, which can cut weeks off your timeline. The goal here is to find the team most likely to fund your SBA loan without unnecessary delays or bureaucratic hurdles.

Do come prepared with a clear story

A bank can only fund what it understands. Before you even pick up the phone to call a loan officer, Natan recommends that you have a coherent story. Know how much capital you need, what the money is for, and how the investment will generate cash flow that services the loan.

Preparation also means having your paperwork organized. Underwriters generally like to start by looking at your personal financial statement, current credit score, and tax returns. Elements such as personal credit and historical cash flow are generally key considerations while evaluating a small-business loan. If your deal has complexities, lay them out clearly.

“I am very much predisposed to make the loan,” Natan says about his team’s initial mindset. “What goes through my mind when I read it is, how exactly can I provide capital to this borrower?” But a lender can only help if the borrower brings clear, accurate information to the table from day one.

Do interview your financial partner

Remember, commercial finance is a two-way street. You are interviewing them just as much as they are underwriting you. Ask questions.

• Are they a direct lender?
• Do they have geographic or industry limits?
• What is their actual track record with your specific type of project?
• Given what they know about your needs, do they see any potential obstacles?

You want to test their expertise and their attitude. As Natan points out, the right partner will look at a slightly messy deal and say, “We really want to do this loan. Let’s figure it out. Let’s figure out how to do it.” That problem-solving mentality is vital. If they seem disconnected or overly rigid during the first conversation, it is perfectly fine to walk away.

What not to do

First, Natan says you should not hide bad news. If you have a messy credit history or a past legal issue, the underwriters will find it eventually. Bring it up early in the conversation so you can explain the context and control the narrative.

Second, do not treat commercial lending like consumer debt. When you buy a house, the interest rate is the most important factor. In commercial lending, the deal structure, repayment terms, and closing speed often matter far more to your daily operations than a fraction of a percentage point.

Finally, do not rely on automated online portals for your research, he says. Technology is great for initial research, but securing a small-business loan requires nuance and human judgment. You need to talk to a real person. A good SBA lender wants to hear your vision directly.

Think of it as a strategic collaboration

Securing capital does not have to be a painful mystery. When you treat the lender search as a strategic collaboration instead of a mere price comparison, it can often save you time and also benefit your business in the long run.

In the world of commercial lending, the right fit makes all the difference. Come prepared, ask tough questions, and partner with an expert team that genuinely understands your business.

The information provided in this article is for general informational and educational purposes only. It is not intended as legal, financial, or professional advice. Readers should not rely solely on the content of this article and are encouraged to seek professional advice tailored to their specific circumstances. We disclaim any liability for any loss or damage arising directly or indirectly from the use of, or reliance on, the information presented.      

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