As a business owner, you understand the importance of having a strong financial base. This means something different to everybody, with many realizing that access to a reputable lender would be in his or her best interest.

Over the years, predatory lending has become a growing problem. This has made it more difficult to not only find the right lender, but to trust somebody to provide you with a loan that suits your every need.

With the new year on its way, you may be thinking about borrowing money in the near future. Rather than make a rash decision that could come back to harm you, now is the time to better understand the process of finding a reputable lender. Here is what you should do:

1. Make a list of national and local lenders with a good reputation for its business lending practices. It may take some time to hunt down the appropriate information, but the internet has made this much easier.

You should also speak with people in your network who have borrowed money in the past. They can point you towards a loan officer who will have your best interests in mind from start to finish.

2. Prepare yourself for the process. Many people turn to a loan shark because of the work associated with borrowing from a traditional lender. Don’t let this happen to you.

Yes, there is paperwork involved with applying for a loan. While this may take some time, it will work in your favor over the long run. A loan shark may remove this pain from the process, but you will never come out on top in the end.

3. Be ready to say no. If for any reason a lender puts you off, don’t hesitate to say no and seek another opportunity. With so many lenders to choose from, there is no point in making a decision you will regret.

With this information guiding you, it is possible to find a reputable lender for your business in 2016.

Do you have any other advice to add?

There is no denying the fact that a relationship with a loan shark sounds appealing. Even if you know this is the wrong decision, you could find yourself sucked in by the many perceived benefits, including but not limited to:

• Quick access to funds.
• Little to no paperwork or documentation required.
• Option to easily request more cash in the future.
• Access to the amount of money you need.
• Credit score and history is not typically a big deal.

With benefits like this, you may soon forget that this type of relationship is not one you want to be involved with. It can turn south at any moment, putting you in a difficult personal and professional financial position.

Fortunately, a traditional lender can make you forget about everything. When you do business with a reputable bank, you will feel better about every step you take. Not to mention the fact that there are no concerns about what the future could bring.

Here is what you get with a traditional lender:

• A loan officer who knows what you are looking for, how to help, and ways to put you in position to succeed.
• Clearly defined terms, ensuring that you know exactly what is expected of you at all times. From the term to the interest rate to late fees, you will know where you stand.
• Documentation that keeps everybody safe and on the same page.

Does it take a long time to complete a business loan application with a traditional lender? This all depends on what you mean by a long time. You won’t receive funds within a day, but at the same time it’s not going to drag on for many months either.

Before you jump the gun, before you think it is okay to borrow money from a loan shark, contact a few traditional lenders to discuss your situation. This will put you in the right frame of mind.

Even though many people are aware of the drawbacks associated with loan sharks, some continue to go down this path when they need money. Are you considering this? Are you wondering what the big deal is? If so, it is probably because you can justify the “benefits” of doing business with a loan shark.

Here is why loan sharks are appealing:

1. Quick access to funds. With a bank loan, this is not always the case. With a loan shark, you can get your hands on the right amount of cash without any delay. For those in a hurry, this is oftentimes enough to push them over the edge.
2. Lack of paperwork. Have you ever completed a loan application? You know that the bank requires quite a bit of paperwork upfront. Furthermore, it seems like they are always asking for another signature. Once again, loan sharks don’t go through all this. For those who despise this type of paperwork, a loan shark will appear to be a breath of fresh air.
3. The money you need. Regardless of how much cash you require, there is a good chance a loan shark can help you out. Traditional lenders don’t always do this, as they take many factors into consideration when deciding how much money you qualify to borrow.
4. Available to give you more cash in the future. This is one of the oldest games in the book, with loan sharks telling people they will be there for them down the road. This may be true, but it doesn’t come for free (or a low cost, for that matter).

These are the reasons why loan sharks are appealing. As a borrower, you need to put all this out of your mind. Instead, it is important to understand that you don’t want a relationship with a loan shark, no matter how beneficial it appears on the surface.

There is nothing better than the feeling of removing yourself from a relationship with a loan shark. This will feel like the weight of the world has been lifted from your shoulders. It may not solve all your financial problems, but it will definitely put you in a better position overall.

While many people understand the benefits of avoiding a relationship with a loan shark, others have a hard time grasping this concept. Instead, they see benefits, as the “lender” is able to provide them with the money they need, without delay.

Before you travel too far down this path, here are three reasons why you don’t want a relationship with a loan shark:

1. High rate of interest. Let’s face it: this is where loan sharks come out on top. They are able to charge borrowers a high rate of interest, much higher than the industry average, because they are not regulated. As a result, the borrower comes out holding the short end of the stick.
2. No way of knowing what the future holds. With a traditional lender, you know the finer details of your loan. You also know that this is not going to change (for the most part). Can the same be said about a loan shark? Definitely not. They have the option to change the terms and conditions of your loan, which is something they often do. If you fight against this, it could make things worse for you.
3. Potentially dangerous. If you default on a bank loan, for example, you could find yourself in financial trouble. This could mean losing a particular asset. With a loan shark, your situation is much more serious. While not always the case, some so-called lenders threaten borrowers with physical violence. Is that a risk you want to take?

The three reasons above prove that you don’t want a relationship with a loan shark. Be sure to avoid this at all costs, as there are more reputable lenders out there.