Question 1

Is it worth going through a funding broker or referral service?

Accepted Answer

It can save time if you do not know which lenders fit your situation, since different lenders specialize in different credit, industries and products. The key is transparency: you should know how the service is paid, see offers directly from the lender, and never pay upfront fees. celerfunding never charges you; lenders may pay us a referral fee when a deal closes.

Question 2

How do I know if a funding broker is legitimate?

Accepted Answer

Check for a real business name, address and contact details, clear disclosure of how they are paid, and no requests for upfront fees or your online banking password. A legitimate service will not guarantee approval before a lender reviews you. Look up reviews and any required registrations where you operate, and read every contract before signing.

Question 3

What are common business funding scams?

Accepted Answer

Watch for guaranteed approval, upfront fees before funding, pressure to sign immediately, requests for your banking login, lenders with no verifiable address, fake government grant offers, and checks that ask you to send money back. Real lenders review your file first and disclose costs in writing. If something feels off, stop and verify independently.

Question 4

Do legitimate lenders ask for upfront fees?

Accepted Answer

Most legitimate business lenders take fees from the funds at closing or add them to what you repay, not in advance. A demand for an upfront processing, insurance or guarantee fee before you receive anything is a common scam pattern. If in doubt, do not pay. celerfunding never charges you any fee.

Question 5

What is a UCC lien?

Accepted Answer

In the US, a UCC-1 filing is a public notice that a lender has a security interest in some or all of your business assets. Many business lenders file one, even for unsecured products. It can make other lenders hesitant to fund until the first is paid. Once the debt is repaid, the lender should file a termination. Search your state's Secretary of State website to see filings.

Question 6

How do I remove a UCC lien?

Accepted Answer

Once the related debt is paid, ask the lender to file a UCC-3 termination with the state where the filing was made, and get written confirmation. If a lender refuses after payoff, there are legal steps available, and you may want a lawyer's help. Check the state filing office's website to confirm the lien is gone. This is general information, not financial or legal advice.

Question 7

Is a UCC lien bad for my business?

Accepted Answer

Not necessarily. UCC filings are a normal part of business lending. However, a blanket lien on all assets can make it harder to get more funding until it is released, and several filings can signal heavy debt to a new lender. Know what each lien covers and ask for termination once you pay off the debt.

Question 8

What is a personal guarantee on a business loan?

Accepted Answer

A personal guarantee is a promise that you, the owner, will repay the business debt personally if the business cannot. It is very common in small-business lending, especially for newer or unsecured products. It can put your personal assets at risk. Read the guarantee carefully, including whether it is limited or unlimited. This is general information, not financial or legal advice.

Question 9

Can I get a business loan without a personal guarantee?

Accepted Answer

It is possible but less common for small businesses. Larger, well-established companies with strong financials or substantial collateral are more likely to avoid one. Some equipment financing or invoice factoring relies more on the asset or customers. Asking for a limited guarantee, capped at a set amount, is sometimes possible. This is general information, not financial or legal advice.

Question 10

How do I get out of a personal guarantee?

Accepted Answer

Usually only by paying the debt, negotiating a release with the lender, or refinancing with a lender that does not require one. Selling or closing the business does not by itself end a guarantee. If you are in a dispute or facing collection, speak with a lawyer. This is general information, not financial or legal advice.

Question 11

Why would I share my bank statements with a referral service?

Accepted Answer

Lenders size business funding mainly from bank statements, so they are needed to match you with suitable options. celerfunding shares your details with a lender only after confirming with you, does not sell your information, and never asks for your online banking password. You can ask what will be shared and with whom before anything is sent.

Question 12

What should I check in a funding contract before signing?

Accepted Answer

Check the amount you will actually receive, the total repayment, every fee, the payment amount and frequency, prepayment terms, default triggers, any personal guarantee, lien or collateral, and whether there is a confession of judgment or arbitration clause. Ask questions in writing and do not sign under pressure. This is general information, not financial or legal advice.

Question 13

What is a confession of judgment?

Accepted Answer

A confession of judgment is a clause where the borrower agrees in advance that the lender can obtain a court judgment without a full lawsuit if there is a default. Some jurisdictions have restricted its use. If a contract contains one, understand it before signing and consider legal advice. This is general information, not financial or legal advice.

Brokers, liens and protecting yourself: 13 questions