At Summit Financial Resources, we see small business financing as both a science and an art. The underwriting process is the “science” behind our ability to provide the working capital to meet your specific business needs.
Underwriting is our due diligence: the process of gathering information and analyzing your financials to make sure we determine the best way to lend you the most money possible while minimizing or offsetting risk.
Underwriting and Working Capital Financing
Summit Financial Resources’ invoice factoring and asset-based lending (ABL) programs benefit small businesses by enabling them to borrow against their assets, including accounts receivables, inventory, equipment, and machinery, and secure operating capital to meet any number of cash flow needs.
This kind of financing allows you to secure funding with less stringent underwriting guidelines than those associated with non-asset backed financing. Our working capital programs generally provide more flexibility and can be customized to fit your business requirements or business cycle.
Prior to authorizing a loan, lenders require a due diligence process. We focus on the value of the assets or collateral when structuring the loan’s terms and conditions, whereas bank underwriting guidelines generally involve a much closer scrutiny of credit worthiness, debt-to-equity ratios, working capital, and other criteria.
Assuming that your business is profitable and has reasonable financial controls, the application and underwriting process is much faster than qualifying for a conventional loan or line of credit.
Getting to Know You
Underwriting is the point in our relationship when Summit Financial Resources will ask you for detailed documentation. We find that prospective customers often get frustrated with the amount of information they need to provide, but it’s essential in order for us to create a win-win for your business and for ours. In our experience, working with a lender who understands your business makes for a better partnership down the road.
The due diligence process involves gathering background information to help us get to know you, your business, and your customers. This includes details about your ownership, management, products and markets, competitors, and revenue cycle, as well as your accounts receivable, inventory, and accounts payable. We also need to clarify the purpose of the loan in order to determine the ideal structure for you.
Sharing is a Good Thing
The more you share with us, the better we are able to analyze and assess your financing needs. In the absence of information, lenders will lean towards the worst-case scenario. Whether you owe back taxes or are facing serious cash flow challenges, being upfront will enable us to partner with you to help resolve the issues.
The “science” is in the underwriting process, but the “art” lies in Summit Financial Resources’ approach to financing. We look beyond your company’s current circumstances, make a well-structure lending decision, and bank on your success.
Working Capital Financing is a few clicks away.
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.