Frostspring Business Loans, a small-business funding broker in Dothan, Alabama, follows four steps: a call about the purpose, a matched structure, a lending partner's review, and your decision on any offer. This page explains each step, what partners review, how to compare APR, factor rates and total cost, and which red flags to watch for.
Broker Versus Lender
A lender advances its own money, sets the price and collects payments. Frostspring handles none of those three jobs. Frostspring Business Loans is a broker, not a lender: we explain the structures, prepare the request and introduce it to lending partners. The partner underwrites, decides and writes the agreement.
Step 1: The Purpose Conversation
Call (334) 256-0679 or send the short form; it asks for your name, email, phone and business name and has you pick ranges for time in business, revenue and the amount, and we ask about the purpose when we call. Expect questions such as: what will the money pay for, when does it need to arrive, and what income will repay it?
Step 2: From Purpose to Structure
The purpose usually points to one or two structures: working capital for a short gap, a term loan for a defined project, a line of credit for recurring costs, inventory financing for stock, equipment financing for machines, or a merchant cash advance, which is not a loan. We say which partners write that structure and what they tend to ask for.
Step 3: A Partner Underwrites the Request
With your permission, the request goes to a lending partner. Partners commonly review bank statements, credit history, time in business, existing debts and the purpose. Some ask for tax returns, a plan or financial statements. The partner decides; Frostspring has no say in approval or pricing.
- Recent business bank statements
- Owner identification
- Entity details and start date
- Existing debt payments
- Sometimes tax returns or a plan
Step 4: Comparing an Offer
If an offer arrives, compare total cost, not the headline number. An APR expresses yearly cost on a loan; a factor rate on an advance is a multiplier and is not comparable with an APR by eye. The safest comparison is the total amount you will pay or have collected, the schedule, and what happens if payments stop.
| Price shown | Where you see it | What to do with it |
|---|---|---|
| APR | Term loans, credit lines, equipment loans | Compare with other APRs; check fees included |
| Factor rate | Merchant cash advances | Multiply by the amount advanced for the total collected |
| Total cost | Any offer, if you ask | Use it to compare across structures |
Red Flags Frostspring Tells Owners to Watch For
- Anyone promising approval before a partner has reviewed the business.
- Upfront fees demanded before an offer exists.
- Being rushed to sign before you have read the agreement.
- Agreements that leave the total cost blank.
- Requests to send bank logins or Social Security numbers by email.
Before Your First Call
Reading the FAQ and the broker disclosures first answers most questions about the broker's role. For free planning help, the Alabama Wiregrass directory lists options outside any lender or broker.
By Frostspring Business Loans · Updated