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Q: I want to buy a business and have great experience (I’m currently the general manager), a good down payment, but no collateral. My other lender told me that I have to pledge collateral to cover the full loan. Another lender says I have to get outside collateral for at least half of the loan. Can you help me?
A: Our lending program is made for you. We realize that since buying a business oftentimes does not include real estate there is little collateral. Unlike other lenders, we at CFN have no minimum collateral requirements in order to make you a loan so yes, we can definitely help you. Remember that we are looking first for the cash flow of the business and your experience to run it effectively.
Q: Does the SBA guarantee loans for liquor stores or restaurants?
A: Yes they do! However, many banks will not touch them. And, since the money does not come from the SBA directly, but from the bank - you would have to find a bank willing to lend on this type of business. That is the tricky part, because all banks are very eager for new business - and love to establish a relationship with anyone that they possibly can in the hopes of new deposit accounts. They're favorite words are "we'll be happy to have a look at it" - which is when you should turn away and run! Unfortunately, too many people take these words to mean "yes" and then after spending at least several months fetching many various documents, they are finally offered some type of lame excuse as to why your deal will not be approved - and, perhaps even a suggestion of establishing a deposit account with them and then resubmitting your request after a recommended period of time!
There are many people who have related just such a story - after they've finally come to us, frustrated, tired, and upset! Working with the professionals at Commercial Funding Now who can tell you almost instantly whether or not you would be successful at having your loan request approved, can be a very valuable time-saving, leverage-enhancing decision. We have no deposit accounts to offer, and therefore have no interest in wasting any time on a deal that cannot be done! If anything, people get upset because we can usually tell them in less than 5 minutes whether they should proceed, or not - and many of them have spent many months or even years without success, or honesty from the many "professionals" that they've encountered.
Working with Commercial Funding Now, you are guided step by step from structuring the loan application through the funding of the loan. And, we only work with the nation's top SBA-preferrred lenders - whom we have correspondent relationships with! Which means, no long waits for committee approvals and we already know who will do a deal such as yours.
Our services include complete loan packaging, application submission and assistance with closing documentation, which accelerates the process from application to commitment to closing. And, time is money. The sooner that we can get you to the closing table, the quicker that you can start generating revenue!
Q: I have a project which needs funding. How do I submit a package to you?
A: Please complete the Borrower Questionnaire and explain what type of financing you need (Equity and/or Debt) and the nature of your project (Start-up, Expansion, Real Estate, etc.). Commercial Funding Now will review this initial request to get an idea of interest. We will determine our level of interest if any and we will contact you with further recommendations and/or instructions. It is our policy not to return Business plans nor sign Non-disclosure Agreements; in the event we decline proposition contact info will be deleted, and hard copies will be shredded.
Q: What should be included in a funding package?
A: Other than the normally accepted documentation for loan/funding approval and acceptance, there may be additional information requests by a specific investor/funder at a later stage. This information varies; however, we will assist in all areas to insure that proper documentation is available to the investor for a swift reply.
Q: How long will it take you to reply to my initial request?
A: Unless the request is unusual or complex, we make our best effort to reply within 24 hours.
Q: Are you a Lender or Investor?
A: Commercial Funding Now is not a Lender or Investor. We are a firm that aligns businesses seeking capital to Investors with that capital. The real plus in working with us is that we know how and who to present your request to, in order to receive funding - at the very best rates and terms available for your deal!
Q: I know many VC sources myself, why should I use Commercial Funding Now’s services?
A: It’s a fact that out of 1000 projects that VC Firms receive unsolicited and review (if they review), only 10 or less receive funding. It’s not completely impossible, but it’s almost hopeless to try to raise capital on your own; one more reason to use Commercial Funding Now’s services.
Q: Why do you require a retainer fee, why is it not possible that I pay upon closing?
A: The first years that we were in this business, we didn't charge a penny and lost lots of money on behalf of our Clients. We had high expenses, which could not be recovered since many of our Clients turned out to be not serious. Many of them never got all of their necessary paperwork in. Many applicants asked us to arrange a loan/venture capital, and all too often they didn't send us adequate documentation, or they did not need the funds anymore, or their phone was disconnected, or they simply disappeared, but in the meantime we spent lots of time (an average of 20–30 hours on each project) and money on their behalf. Of course, we don’t say that you’re not serious, but there’s really no other way. Upon advice of our attorney and accountant, we now work on this basis. In a nutshell: Professional Services are not for free, if they are you should really worry about their quality. We put forth our best efforts; if anyone is not prepared to pay our retainer or wishes to go into negotiation regarding this matter, then please stop reading here, since we will not respond to requests to pay our retainer at closing. We only work with serious, committed borrowers!
Q: Would you make an exception on your retainer fee when I promise to pay a higher commission at closing?
A: The only exception we could make to waive retainers and accept payment of commission out of closing (5%–10%) would be if a North American or European Company would have a "proven track record", and have reached a level of profitability that would ensure that company's success; thus creating the need for additional funding to expand the company. We prefer Companies with a net worth of min. US$ 2 Million and average after-tax income for the prior two years of minimum US$ 1 Million. In other words: without evidence of existing revenue and a current proof of fund we would not be able to waive our retainer. Please don’t request to waive our retainer if your Company doesn't fall into this category; we will not respond to such requests. We don’t charge a retainer for our No-Doc Stock Loans, as mentioned in our information. For the other services we expect a retainer to be paid to cover our basic expenses and time as explained above. There are no negotiations or exceptions. We receive and review hundreds of executive summaries and/or business plans a month, and only have the capacity to process 2 to 5 monthly, and prefer the viable projects of these clients that pay, over those trying to negotiate regarding this retainer. If you do not intend to pay for our services, then please re-consider your position and don’t contact us, since we definitely will not reply, but delete such e-mails immediately.
Q: What are the total costs?
A: These costs vary, depending upon the project, method of financing used, degree of difficulty, etc. Such costs will be spelled out to you in a transparent agreement called a Letter of Engagement. They run .05% to about 7% of loan total. Obviously, a lot has to do with the amount of the loan request – the same amount of work is required regardless of the amount.
Q: Why is it sometimes necessary to compose or edit our Business Plan?
A: The Business Plan you present is your most important tool when you need funding for a business loan. Please bear in mind, you never get a second chance to make a first impression. The Business Plan we prepare or edit on your behalf will impress the prospective Investor and may make the difference between getting funded and not getting funded. This BP supplies all the information that an Investor ever needs to evaluate your proposal. It's easier to get immediate interest from an Investor when you provide them with everything they need, in the format they prefer.
Q: I already have a complete and perfect Business Plan, why do you still need a retainer?
A: We would still have to spend the same 80–90 hours to file forms, faxing and e-mailing various Investors as explained under #6 and the next group will spend another 100–150 hrs. on file.
Q: How do you send my Business Plan to the potential Investors?
A: We submit the BP to them by e-mail, disk, fax or overnight shipping. For those investors that prefer hard copy documents, the BP will be prepared in book form. In addition we will submit your funding request to any and all Investors that have showed an initial interest. From our vast network of Investors not everyone will consider every deal, but there is absolutely no better way to present your funding request to as many potential investors as possible, besides the ones we have regular contact with.
Q: Can I be of help to you during the Funding process?
A: Yes, first be very sure that you are prepared to proceed. We are very serious about all projects that are brought to us. Given that we put our best efforts into each funding request, you must be prepared to work with us in putting the information together that will achieve the results you require. We will request that you provide all requested documents in a timely manner.
Q: Is it necessary that we meet with you?
A: No, there’s no need for meetings, this is useless at this early stage. At a later stage Investors would possibly wish to meet with you, but this is not always necessary.
Q: How long will to close?
A: Once a project/proposal is deemed feasible, it depends entirely upon the speed in which the Client conforms to any additional requests for documentation. From the time that we have a full and complete package, requests normally fund within 30-45 days.
Q: Can you guarantee that my project will be funded?
A: No, nobody can—if someone does promise this he’s lying and only tries to cheat you—although we will not knowingly participate with any client, or on any project, we do not believe has a reasonable opportunity of being completed successfully. This determination is made based upon Client representations and our own internal review and investigation of the facts.
Q: What, exactly, can your company do for me?
A: For more information, click here
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