Last week I closed a $200,000 short term commercial advance within 8 hours of the initial request. This is a perfect example of what I've been trying to convey to all my friends who are business owners, sometimes you just need it fast.
These days, the need for speed has increased because of all the sudden changes business owners are dealing with combined with new demands for up-front payments from suppliers. Scarcity of most basic materials makes it even more important to have capital on hand or at least quick access to it when needed. Here's how last weeks deal went down:
Thursday morning 10ish:
I get a call from a merchant who received one of my emails, he asked me for a quote on $200k. I requested to see his last three (3) banks statements and some year to date financials.
Thursday 11am:
The merchant sent me his bank statements and YTD financials as well as his balance on an existing position with another lender, the business is doing average monthly revenues of around $400k. I immediately started a review which took about 2 hours.
Thursday 1pm:
The merchant was approved for $250k (more that what he requested) so I called and we spoke briefly about what terms he was looking for so I could finalize his offer. The merchant gave me the parameters he was looking for and I spoke with our underwriters to hammer out final terms of our offer.
Thursday 1:30pm:
Final offer was presented to the merchant: $200,000 / 11 months (weekly payments) - [If you want more details you'll have to call me lol!] - the merchant asked to see contracts so I requested a copy of his DL and a voided check in order to include the information in the contracts; I then proceeded to issue formal "Docusign" contracts to the merchants email.
Thursday 3pm:
Contracts were issued along with some additional stipulations: full 12 months of bank statements and proof of ownership which is included in the tax return. The merchant provided the additional documents and our underwriter called him for the merchant interview and bank verification.
Thursday 4pm:
Once the merchant interview and bank verification was finished a final review was done and a final funding call was scheduled.
Thursday 5pm:
Final funding call finished and final funding was confirmed - the actual wire went out the following morning, Friday April 15th at 9:17 am.
I hope this blow-by-blow account helps you understand how quickly your business can access immediate capital to cover expenses. No banks will do this; it is impossible for them to move that fast.
$200,000 of unsecured, signature money without affecting anything else in your debt profile in less than 10 hours - done!