Responsible lending is a term that can get thrown around in the lending industry—it sounds great and certainly makes financial institutions look good when they use it... But practically speaking, what does it mean? And more importantly, how does it affect you as a business owner?
It matters a lot, actually. If you’re looking for business funding to grow your veteran business, you want to work with small business lenders who will set you up for success. It’s in your best interest to work with a lender who practices responsible credit reporting, has an alignment of interests and provides you with the right-sized funding so you won’t default on a loan.
If your small business lender claims to practice fair and responsible lending, here are the top six characteristics you should expect to see in them: