Arranging working capital for clients always seems to be an urgent endeavor. Whether because of emergency or narrow window of opportunity, it always seems like the need for money is immediate.
Because of this, we’ve gotten very good at providing a quick turn around of working capital. Knowing each individual company’s preference, how they work, how they like to see information, etc. really helps us get a very quick turn around for clients. However, you as the business owner also play an important roll in getting funds into your account quickly.
For example, every company in the industry will call your landlord as part of the verification process. Landlords are typically busy people and if they get a phone call they are not expecting from a company they are not familiar with, a return call may be days away while your opportunity fades or your emergency becomes more acute.
Always call your landlord to make them aware you are arranging for some working capital and they can expect a call that you would appreciate an immediate response to.
Once your application is in the underwriting department of a company, there are three areas that seem to unnecessarily slow things down.
1) Not knowing your total sales volumes. Your sales person may not have told you, but your total volume actually determines how much of the Visa/MC can be used for your financing without putting undue strain on your merchant’s cash flow. All funding companies take this into consideration and you should as well.
2) Giving inaccurate information regarding DBA and corporate names. I’m always amazed how often a merchant gets the name of his or her own business wrong on the sales paperwork. When the underwriting department can’t find the business name in Accurint or online yellow pages or wherever, they can’t verify anything. This really slows things down unnecessarily.
3) Failure to provide valid proof of ownership. The financing company needs solid documentation that a guarantor actually does have the right to assign assets of his/her company. Being a contact person, agent or general manager is not meaningful. The guarantor must be an owner or officer. Providing this documentation with your initial paperwork helps speed the process.
Being a small business owner myself, I know how hard it can be to slow down enough to accomplish a task correctly the first time. I’ve had clients get money into their account in 5 business days from our first conversation and others have taken more than 3 weeks.
Every company in the industry is set up for a quick turn around on complete documentation. We often find that sales people are only concerned with getting a deal submitted, regardless of the condition of the paperwork and documentation.
Being aware of these few tips will help you cut your return time in half and put your new working capital in your account in the next few days rather than several weeks.
