Identify who is arranging financing, what they are paid and which written terms support the sales claims.
Identify each participant
A business may speak with a marketer, broker, financing provider and servicer during one application. Ask each participant for its legal entity name and role. Confirm who will contract with the business and who may contact the owner or receive application information. A logo, fast prequalification or claim of industry experience does not explain the actual relationship. Keep a dated record of the parties and the documents each provides.
Check claims against the written offer
Ask the broker to explain compensation, possible fees, the providers approached and any limits on the comparison. Record claims about approval, timing, collateral or guarantees and compare them with the proposed agreement. The FTC’s historical small-business financing guidance addresses deceptive or unfair practices across participants in the financing process. That guidance is useful context for scrutinizing sales language, but it does not establish that a particular broker has violated the law.
Control document sharing
Use an approved submission route and ask where the application will be sent. Do not send banking credentials or identity documents through an unverified message solely because an intermediary requests urgency. Keep copies of the information actually supplied. If multiple offers arrive, identify which application and intermediary produced each. An owner should be able to explain who has the records and how to contact the responsible company if a problem arises.
Make the review specific to the business
Compare net proceeds, payment timing, total obligations and material contract terms with the accountant and qualified counsel. A Florida, New York or New Jersey business should ask which applicable rules and disclosures the provider used for its actual transaction. Preserve concerning messages and use the appropriate regulator or reporting channel when warranted, without assuming every disagreement proves misconduct. This is an offer-verification framework, not a report of a newly announced investigation. A useful outcome is a clear comparison file and an informed decision about the real terms.
Related reading
New York Commercial Financing Disclosures: Build a Comparable Offer File; A Financing Request Needs a Use-of-Funds Map, Not Just a Revenue Number. Continue with the New Jersey business guide.
Primary sources and scope
FTC: historical small-business financing guidance (2020). Sources checked October 17, 2026. This article provides general information and document-preparation questions; it is not legal advice, a financing recommendation or a determination of rights in a particular matter.
Eric Kuvykin
Publisher and editorial director covering payments, fintech, merchant services, banking, AI, technology and operating strategy for small and medium-sized businesses.
