Redrun Business Funding, a small-business funding broker in Caldwell, Idaho, follows four steps with every request: the purpose, the shortlist of structures and partners, underwriting by a lending partner, and your decision. This page explains what underwriters review, how banks, credit unions and online lenders differ, how to compare APR with a factor rate and which red flags to watch for.
Step 1: Say what the money must pay for
Everything starts with the purpose. A payroll gap, a skid steer, a store fit-out and a stock order each point to different structures. Call the Main Street number or leave your details on the short form; the purpose comes up on the first call, along with when the money needs to arrive and when it will come back.
Step 2: Narrow the structures and the partners
Redrun matches the purpose to the structures that fit it (working capital, a term loan, a line of credit, inventory financing, equipment financing or a merchant cash advance, which is not a loan) and to partners that work with them. We tell you which records those partners usually ask for.
Step 3: A lending partner runs the numbers
Underwriting means the partner deciding whether to fund, and on which terms. An underwriter is the person or team at the partner who does that review. They usually look at:
- Bank statements: deposits, balances and existing debt payments.
- Sales and profit, read from tax returns or the books.
- Time in business and the entity's standing.
- Owner and business credit.
- Collateral, where the structure needs it.
- The purpose and whether it matches the structure.
The partner decides and sets the rate and terms. Approval, refusal and pricing all sit with the partner, never with Redrun.
Banks, credit unions and online lenders
Owners often ask whether credit unions offer business loans. Many do, as do community banks, and both are worth asking directly, especially if you already bank with them. Banks and credit unions tend to ask for more documents and take longer; online lenders tend to ask for less and decide sooner, often at a higher cost. Redrun works with lending partners across that range, and nothing stops you from comparing Redrun's offers with your own bank's.
Step 4: Compare offers and decide
Loans are usually quoted with an interest rate or APR; merchant cash advances with a factor rate. These are not the same measure. The fairest comparison is total dollars paid, payment size and frequency, and how long the money is needed.
| Measure | Loans and lines | Merchant cash advances |
|---|---|---|
| Price quoted as | Interest rate or APR | Factor rate (a multiplier) |
| Collected | Scheduled payments | A cut of sales, or a fixed debit |
| Total cost | Interest plus fees over the term | Purchased amount minus purchase price |
| Early payoff | May reduce cost; check prepayment terms | Often no reduction; check the agreement |
Redrun reads offers with you line by line. You decide whether to accept, and you can stop at any point.
Red flags in an offer or a pitch
- Someone promising approval before a single record has been read.
- A request for money up front before you receive an offer.
- Being hurried to sign before you have read the offer.
- An advance described as a loan, or a loan with no written schedule.
- Blank spaces in an agreement, or pages you were not given.
More on Redrun's role is in the broker disclosures. Short answers to common questions are on the FAQ page, and free advice is listed in the Canyon County resource directory.
By Redrun Business Funding ยท Updated