A Boutique Small Business Loan Agency
1. FIRST CONTACTThe initial conversation will be between the business owner and a funding manager. It is a “meet and greet” process. We will want to learn how your business operates, your short/long term plan, and most importantly- what the proceeds are going towards.
2. DOCUMENT COLLECTIONA detailed look at your cash flow/revenue stream. We will ask for business bank statements (6 mos) and occasionally the latest tax returns. This allows us to see the ins and outs of your business cash flow and begin to pinpoint what kind of loan will help you achieve your goals.
3. CREDIT ANALYSISPersonal/business credit is reviewed and a risk assessment is made. The good news is that credit requirements for business capital are significantly less than what a typical bank loan would require. Low scores (even under 500) are still not necessarily deal killers. Sometimes issues such as tax liens, large unresolved judgments and recent bankruptcies may need immediate attention before (or concurrent) with a loan approval.
4. CREATING THE LOANThe loan is underwritten using a a complex calculation that marries the ROI (return on investment) for the borrow vs risk for the lender.Essentially- the loan has to make sense for both parties. This effects the total amount of the loan, the term, the payback method and the rate. Most business loans under $2 million are unsecured, so the underwriting has to be as effective as possible to keep the likelihood of default as low as possible.
5. FUNDING STAGEAll the details of the loan will be reviewed with the borrower to ensure complete transparency. After a few additional supporting documents are collected (proof of identity, business license and bank verification etc) the funds are released to the borrower via ACH or wire transfer.