In 2020 the world changed
Business Funding Did, Too
Post COVID Funding
Funding for the new normal
Underwriting 2.0
Underwriting 2.0
The New Normal
Learn how the world of business lending changed overnight
Underwriting is Uncertain
Lending requirements in both the primary and secondary markets are in a state of shift.
You Need an Advocate
When lenders don’t even know their own current criteria, how are you supposed to? Let us advocate on your behalf.
Underwriting is Uncertain
Lending requirements in both the primary and secondary markets are in a state of shift.You Need an Advocate
When lenders don’t even know their own current criteria, how are you supposed to? Let us advocate on your behalf.
The New Normal
The world of business funding definitively changed due to the novel coronavirus pandemic.They don’t know what they don’t know.
Today, lenders have no choice but to reconsider their underwriting criteria. After all, an individual business’s performance in 2019 likely provides little-to-no guidance on how that business is performing in the so-called “new normal”, or post pandemic business world. What’s more, lenders are scrambling to understand what metrics they should be measuring when determining a business’s creditworthiness. If a restaurant lost 100% of it’s dine-in revenue while simultaneously quadrupling its take-out business, can the lender assume that as the take-out business falls the dine-in business will increase?
Some of the changes that owners of small and mid-sized businesses should anticipate from underwriters in the near-term:
- Requests for a longer track record of cashflow
- Month-over-month and week-over-week sales reports, rather than year-over-year and same-quarter reports.
- More verification of cashflow projections, and overall more documentation.
When we look at the Post-COVID secondary lending markets, which include asset-based lending, factoring, equipment leasing and the like, we will see even more differences.
Many non-traditional funders loan money based on their own lines of credit, so they may be facing similar restrictions as you.
Additionally, because alternative lenders typically focus much more on key aspects of the business, including future cashflow, understanding the medium and long-term impact that COVID may have on your particular industry, and your individual business, will be key in their underwriting decisions.
Every business was affected by the pandemic, but not every business needs rescuing. Some just need access to capital and credit to continue operations.
Yes, we are in a new normal. Some things will inexorably change. What likely won’t change, however, is that access to capital will be a key factor to business development, growth, and flourishment.
It’s better to know the HOW than the WHY
We can’t tell you we know what lenders are looking for. They themselves are still figuring it out. When you can’t know the “why”, the “how” becomes indespensable. We know how to present a business. We know how to shop lenders. We know how to speak their language. We know the grueling, tough questions they are likely to ask you, and we can ask them first.
Yes, small and mid-sized businesses can still get capital. Yes you can still get funding for your next stage of growth, or to get you back on track. You just have to know the “how”.
It’s better to know the HOW than the WHY
We can’t tell you we know what lenders are looking for. They themselves are still figuring it out. When you can’t know the “why”, the “how” becomes indispensable. We know how to present a business. We know how to shop lenders We know how to speak their language. We know the grueling, tough questions they are likely to ask you, and we can ask them first.
Yes, small and mid-sized businesses can still get capital. Yes you can still get funding for your next stage of growth, or to get you back on track. You just have to know the “how”.
Find YOUR new normal
Our team of professionals can help you find your new cashflow equilibrium.
We will look at your individual situation; financial and business history, detailed projections, industry outlook, funding requirements, business volume and other factors. We will challenge your assumptions. We will ask you the hard questions now, when an incorrect answer won't cost you access to the capital your business needs to flourish.
We may recommend pursuing a traditional bank loan, and we can help you shop to the right lenders who are ready to do business. We may recommend that you leverage capital tied up in receivables, and find a factor that meets your business profile. We may match you with a company that specializes in funding businesses based on hard assets. First, however, we'll get to know your business, so we know how to advise you.
Find YOUR new normal
Our team of professionals can help you find your new cashflow equilibrium.
We will look at your individual situation; financial and business history, detailed projections, industry outlook, funding requirements, business volume and other factors. We will challenge your assumptions. We will ask you the hard questions now, when an incorrect answer won't cost you access to the capital your business needs to flourish.
We may recommend pursuing a traditional bank loan, and we can help you shop to the right lenders who are ready to do business. We may recommend that you leverage capital tied up in receivables, and find a factor that meets your business profile. We may match you with a company that specializes in funding businesses based on hard assets. First, however, we'll get to know your business, so we know how to advise you.