How To Speed Up Your Funding & Minimize Frustration
Posted by SCOTT GRIEST
7 July, 2016
As the world of alternative funding for small businesses continues to mature we are seeing the price for the product is becoming less of differentiator. The service and speed of funding contracts is quickly becoming a major factor for funding companies. At Rapid Capital Funding we've taken significant steps to invest in systems and people in order to speed up our process. It’s now commonplace for our clients to receive their funds within two business days.
Even given all of our improvements, Rapid Capital Funding does not control all the aspects of a deal. Clients can greatly influence the speed of funding and ensuring that an approval doesn't get killed in the due diligence process. By following these two simple steps you can greatly improve your success rate:
- Don't Hide The Bad & The Ugly
We sometimes see people trying to brush over negative information about their business such as recent tax liens, being constantly two-weeks late on rent or some other issue. With all the technology and tools at Rapid Capital Funding, including site surveys, legal/public database aggregates, background checks, reverse phone look ups and even simple Google searches, we find these issues.
Its best to present us with the good, the bad and even the ugly facts about your business’ current financial situation. This allows us to properly structure and price a contract upfront that doesn't put the business in a financial hardship, meets the business’s financial needs and fits Rapid Capital Funding’s risk appetite.
The last thing you want to do is to turn a verification process into a Sherlock Holmes investigation and possibly get the dreaded ‘Denied’ stamp.
- Be Prepared & Set Realistic Expectations
Make sure you have all recent financial documents and basic information on hand for your business. To help speed along the process, download your recent bank statements from your bank’s website and have them labeled by month. If your business accepts credit card payments from its clients, have the merchant processing account statements available as well. Please remember that the more statements you have, the better your approval will be – Rapid Capital’s decision is based on data. If you are requesting a large amount, over $50,000, create a recent financial statement folder and put your most recent tax returns into a digital format such as PDF.
Often, when we receive contracts back and immediately give our Welcome Call to a business to confirm contract terms & payment method, we inform them of the due diligence process. They are shocked that it is going to take two days to get their $50,000. Unfortunately a simple one-page application and a few bank statements faxed an hour ago isn’t enough us to wire them tens of thousands of dollars.
We have a process in place that we need to follow, and unfortunately landlords are not always available and it may take a day or two to call or fax us back. Its best to let your landlord and other relevant parties know that someone will be contacting them to verify the business lease and recent payments for your business.
By following the two simple steps above, you will see a dramatic increase in your funding success rate, with minimal frustration.