Whether their seasonal business is experiencing a cash flow crunch or they need working capital to take advantage of an expansion opportunity, entrepreneurs and small business owners know when it’s time to consider financing. However, what they don’t know often prevents them from seeking the funds they need.
You may believe the process is difficult and time-consuming, or you won’t qualify for a loan because you’re a startup or don’t have stellar credit. If so, we’d like to put your mind at ease. Summit Financial Resources provides asset-based lending, invoice factoring, and inventory lending to businesses of all shapes and sizes. These services all involve simple processes that sound far more complicated than they actually are.
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What Lenders Expect You to Provide
Most lenders will request several essential pieces of information before considering offering financing to prospective clients. Summit Financial Resources requires your business to be organized and in good standing in the state in which you are formed, and you will need to show proof that your company is incorporated.
In addition, we ask that you provide two fiscal year-end financial statements as well as an interim statement. The year-end statements will show your financials through the calendar year-end, which, for most businesses, is December 31st. The interim statement will cover your year-to-date financials.
Lenders also expect the owner or owners to provide a personal financial statement. Because small business owners often use personal credit to run their companies, your personal credit and your business credit are closely linked in the eyes of banks and other lenders. Many lenders consider your personal credit history a measure of your ability to meet your financial obligations.
You may be asked to provide additional data depending on the type of financing you are looking for. If you are interested in an asset-based loan or invoice factoring, you will need to provide details of your accounts payable and receivable as well as an inventory report. If you are applying for an equipment loan, you will be asked for a list of the equipment you wish to borrow against or a purchase order if you want the funds to buy something new. Business owners looking to purchase real estate may be asked for a building appraisal, total square footage, or other details from a realtor.
How the Financing Process Works
Once you have provided us with the information requested, it will be thoroughly reviewed by a member of our Relationship Management team. At this point, we typically go back to prospective clients and ask for additional information, which often includes documentation related to the intricacies of your business.
The reason for this is that we want to understand what makes your company tick. Different types of businesses benefit from different types of financing, and we don’t offer clients an off-the-shelf, one-size-fits-all facility. We take the time to determine the best way to lend you the most money possible while minimizing or offsetting the risk.
Prior to authorizing a loan, lenders require a due diligence process. Underwriting is our due diligence: the process of gathering information to help us get to know you, your business, and your customers. We may ask for details about your ownership, management, products and markets, competitors, and revenue cycle. We also need to be clear about the purpose of the loan in order to identify the ideal structure for you.
Summit Financial Resources’ invoice factoring and asset-based lending programs allow small businesses to borrow against their assets, including accounts receivables, inventory, equipment, and machinery. This kind of financing allows you to secure funding with less stringent underwriting guidelines than those associated with non-asset backed financing. Assuming that your business is profitable and has reasonable financial controls, our application and underwriting process is much faster than qualifying for a conventional loan or line of credit.
Based on the information provided, we will re-analyze the data and make a decision as to whether to move forward or not. If your application is approved, we produce the necessary documents, have them signed, and fund your loan as quickly as possible.
Borrowing cash is often easier than you think. Summit Financial Resources specializes in financing for small businesses just like yours, with lending programs designed to give you flexibility and fast access to cash so you can keep your company growing.
Working Capital Financing is a few clicks away.
Apply online and get started today >
Summit Financial Resources specializes in working capital financing for small to medium-sized businesses that need increased cash flow. We provide working capital financing through invoice factoring, asset-based lending, inventory lending, and equipment financing.