A skilled commercial loan broker widens your lender coverage, expands product options, and packages your deal to underwriting standards—then runs a true market process.  A true market process looks at what the market will bear. One standardized intake gets your deal evaluated across banks, SBA-preferred lenders, non-banks, and specialty finance. The placement is based on fit—industry experience, collateral type and depth, DSCR/cash-flow profile, and risk appetite—so you see real options, not guesses. The result is fewer dead ends, faster paths to “yes,” and term sheets that close on structure and price you can live with. If you already maintain active, competitive bank relationships and can quickly source multiple quotes, going direct can be efficient. Use a broker when it clearly improves access, speed, or terms; go direct when your banks are already delivering.  

Cash Flow is King!  Cash flow is the operating oxygen of a business—the net movement of cash in and out. Even profitable companies can fail if receipts and disbursements are mistimed. Consistent, positive cash flow pays payroll and suppliers, services debt, funds growth, and carries you through slow cycles. In practice, more failures stem from cash-flow mismanagement than from lack of profit. Make cash discipline standard: monitor operating cash flow regularly, maintain a rolling 13-week forecast, accelerate receivables, optimize payables, manage inventory efficiently, and preserve a liquidity buffer. Strong cash flow management doesn't just support loan repayment, it positions your business to seize opportunities, weather uncertainty, and thrive long term. 

 Debt Service Coverage Ratio (DSCR) = cash available for debt ÷ total debt payments. For operating companies, lenders usually start with EBITDA (earnings before interest, taxes, depreciation, amortization), adjust for owner add-backs they believe, subtract recurring capex if relevant, then divide by annual principal + interest. Most want ≥1.25×—that cushion covers hiccups so one slow month doesn’t spiral into covenant drama. Structure beats rate: longer amortization, fixed where it makes sense, and avoiding daily-pay stackers can lift DSCR more than chasing 25 bps. Price properly, trim fixed costs, speed AR, and right-size inventory so cash actually shows up. Refinance short-term squeezes (advances, MCA) into term debt tied to useful life, and keep working capital on a revolver that truly revolves. Before you apply, model DSCR under base, +10% costs, and –10% sales; aim for ≥1.30× in your plan so you still clear ≥1.20–1.25× under stress. Document the story (use of funds → revenue/expense impact → coverage) so the underwriter isn’t guessing. 

Finance timing, not hope. Short-term credit should cover short-term needs like inventory buys and AR gaps that unwind in weeks, while long-lived assets—equipment, buildouts, buyouts, owner-occupied real estate—belong on term loans that amortize over the asset’s useful life. When you fund a five-year asset with a six-month advance, cash gets squeezed, covenants wobble, and you’re refinancing under pressure at the worst moment. Structure it correctly and repayment rides the cash the asset actually generates, with DSCR cushion instead of monthly panic. Favor amortization that matches useful life, consider a brief interest-only ramp while the asset starts producing, and keep a separate LOC for working capital so you’re not living on a revolver. Avoid balloons you can’t clearly refinance, and judge deals on total cost and cash flow impact—not just the headline rate. The right structure protects liquidity, preserves covenant headroom, and keeps you focused on operating the business instead of juggling payments.

A line of credit is a bridge for timing gaps—draw for inventory/AR, pay down with receipts, keep principal trending down, and run periodic cleanups so the revolver actually revolves. Avoid funding long-lived needs with the LOC (use term loans), target ~30–50% utilization with a 20–30% cushion, and align limits to your cash conversion cycle. Red flags—balances that never fall, maxed availability, stacking daily-pay debt—mean a business model or structure problem, not “more line.” Raise margin or speed collections, negotiate terms, and refinance durable spend to term debt. Simple rules—no Capex on the LOC, weekly AR discipline, draw/repay logs—keep DSCR and sanity intact.  In summary, use the LOC for timing, not funding: draw, repay, clean up regularly, and keep utilization moderate. If balances won’t fall, fix margin/collections and move long-lived needs to term debt. 

 Debt gets paid with cash flow—so insure the cash flow. Use key-person to replace leadership-driven revenue, and business interruption (BI) with extra expense to cover payroll, rent, and debt service after a covered loss; set realistic limits, choose replacement cost, and align waiting and indemnity periods with your sales cycle. Layer in property/casualty, GL/product, E&O, cyber, auto, WC, and an umbrella; add ordinance or law, equipment breakdown, and flood/quake if exposure warrants, plus contingent BI/civil authority for supply-chain hits. Tie coverage to loan docs—name the lender loss payee/additional insured, deliver ACORDs with 30-day cancellation notice, and map policies to covenants so BI can carry fixed costs and debt service through recovery. Done right, insurance turns a bad week into an operational problem—not a covenant default—protecting DSCR, pricing, and your sleep.

Vendor terms are stealth financing. When cash is strong, take early-pay discounts—they’re often the cheapest “yield” you’ll ever earn. Example: 2/10, net 30 is roughly a 36% annualized return for paying 20 days early. Lock in predictable POs, share forecasts, and use partials or milestone billing so suppliers can plan. The trust you build buys priority during shortages and better pricing over time.

When cash is tight, negotiate extensions and cadence, not favors: move to net-45/60, ask for seasonal schedules, split deposits (e.g., 30/40/30), or align due dates to your AR cycle. Don’t silently “stretch”—it wrecks credibility. Instead, set a target DPO (days payable outstanding) by vendor tier, automate on-time payments, and keep A-vendors pristine while flexing with B/C-vendors. A few days shifted across volume becomes real runway without adding debt.

Treat AR like near-cash. Set clear terms up front (deposits/progress billing, credit limits), invoice same day with PO#, remittance info, and an ACH link, and automate e-invoicing + reminder sequences. Offer smart carrots (e.g., 1/10, net 30 ≈ ~18% annualized) to low-risk customers. Run a tight collections cadence: reminder 7 days before due, nudge on due date, call at +3–5, escalate at +15/+30 per stop-ship rules. Track DSO (days sales outstanding) and aging reports—keep >80% current/≤30 and <10% over 60—and segment: A-accounts get grace, chronic late payers move to retainers. Reconcile unapplied cash weekly and resolve short-pays fast. If you borrow on AR, remember >90-day invoices go ineligible; factoring/AR finance can bridge growth, but price it against margin and keep it a tool, not a lifestyle. 

Owning your commercial property converts rent into equity, stabilizes occupancy costs, and gives you long-term control over your operating footprint. Compared with leasing, ownership may offer tax efficiencies (e.g., depreciation and interest deductions) and potential appreciation, while helping insulate you from rent inflation and relocation risk. When appropriate, owner-occupied financing—such as SBA 504 loans—can provide long-term, fixed-rate structures with relatively low equity requirements, allowing you to invest in your business’s future. (Disclaimer: BMH Capital does not provide tax, legal, or accounting advice.) 

 Preparing for financing starts with clean, current financials—bank statements, tax returns, YTD P&L and balance sheet—and a clear use-of-funds plan tied to growth and repayment. Lenders prioritize capacity, credit, and consistency: durable cash flow (and DSCR), a strong credit profile, and an executable business model. As your loan broker, we identify gaps early, package your file to lender standards, and position the request—numbers, narrative, and collateral—to meet lender requirements and speed up decisioning. 

Waiting until a cash crunch to seek financing reduces choice and negotiating power. Lenders reserve the best pricing and structures for borrowers with stable cash flow and clean, current financials—before distress shows up. Build your capital plan early and secure capacity while you’re strong; you’ll move faster on opportunities, cushion downturns, and lock in better rates, limits, and covenants. 

While your personal or business credit score is important, it’s just one factor in the lending decision. Lenders also evaluate your revenue stability, profitability, industry risk, time in business, debt service coverage ratio, and the strength of your management team. Strong financial documentation, a clear business model, and a demonstrated ability to repay are often more impactful than a perfect credit score. Working with a broker can help you highlight your strengths and present a complete, compelling application that speaks the lender’s language.