At Thrivory, we’ve had the privilege of working with some amazing clients, and their stories often highlight why education and transparency are just as important as the funding itself.
Not long ago, we met with a potential client for the first time. During that meeting, we walked her through the difference between Thrivory and many other lenders. We explained how some companies offer fast money but hide the real cost behind confusing terms, high rates, and full recourse clauses that put all the risk back on the business.
A few weeks later, she sent us a note thanking us for warning her about one of those lenders. While shopping for a loan on the web, she got an offer of $50,000 with repayment over 14 months at $1,400 per week.
At first glance, it looks reasonable, right? But when you do the math, that’s a 60% rate. When converting it to APR, that’s a whopping 169%. She told us the only reason she checked the numbers was because of our conversation. I’m happy to report we were able to help her with a significantly lower rate.
Another prospect told us last week about an even more frustrating experience: They spent over six weeks going back and forth on a loan application, sending documents, answering questions, and thinking they were almost at the finish line. Only later did they learn the company was not the lender at all, but a broker.
By the time they reached the actual lender, the terms had changed completely. The rate was higher, the repayment was shorter, wasting weeks of time and effort…
These situations happen more often than they should. Based on our experience, here are five things every business owner should watch for before committing to financing:
Always do the full math
Match repayments to your revenue cycle
A working line should support your cash flow, not suffocate it. Many lenders push daily or weekly repayment schedules that can look small in isolation but can drain your working capital quickly.
If your revenue comes in monthly, a weekly debit will create constant stress. Ask how repayment aligns with your receivables. A responsible financing partner will structure payments around the rhythm of your business, not theirs.
Learn who you are dealing with
It is important to know whether you are working directly with a lender or through a broker. A broker might promise the world but has no control over the actual terms. This can lead to surprises, delays, and higher costs.
If you are unsure, ask directly: “Are you the lender, or are you placing me with someone else?” Knowing who ultimately sets the terms will save you from wasted time and unpleasant surprises.
Speed is not always a good thing
“Cash tomorrow” sounds great until you realize the price you are paying for it. Many companies use speed as a selling point because they know it distracts from the true cost.
Of course, fast funding matters, especially when your expenses do not wait, but fairness and transparency should come first. If the offer feels rushed or too good to be true, step back and review the details carefully.
Choosing a partner, not a lender
Financing is more than just getting money in bank. It is about working with someone who understands the industry, respects your goals, and can structure a solutions that supports your growth.
A good partner will explain the terms clearly, answer your questions directly, and tell you when a product may not be the right fit for you, even if that means sending your somewhere else. When you find a financing company that acts as an advisor rather than a salesman, you know you are in the right place.
Our shameless plug 🙂
At Thrivory, we’ve learned that educating our clients is one of the most powerful things we can do. When they understand the numbers, the terms, and the hidden pitfalls of an unforgiving industry, they can make choices that protect their business. Knowledge is power, and having the right information at the right time can save your business from costly mistakes.
If you are exploring financing, we are committed to being a trusted partner for practices that want funding designed around growth, not traps. Whenever you’re ready, we are here to help you find a smarter path forward.