Model total cost beyond the factor rate Merchant cash advances quote a payback multiple, such as 1.35x the advance, rather than an interest rate. Convert the multiple into an annualized rate based on …
Pull full credit files from all bureaus Lenders often check personal credit when underwriting small business debt. Order reports from Experian, Equifax, and TransUnion rather than relying on consumer …
Define the structure before uploading Create a folder hierarchy that mirrors lender requests: corporate, financials, tax, customers, suppliers, legal, HR, and operations. Add a cover sheet that lists …
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Start with economic development priorities States design grants to drive specific outcomes: job creation, downtown revitalization, manufacturing upgrades, or clean energy adoption. Read program …
Clarify objectives and constraints Start by defining whether the priority is cash speed, total cost, or relationship impact. Factoring sells invoices to a finance company for immediate cash, while …
Clean the chart of accounts A lender will scan your chart of accounts to see whether income and expenses are categorized consistently. Consolidate duplicative accounts and remove stale codes that no …
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Define the strategic purpose Venture debt can extend runway, finance equipment, or provide cushion between equity rounds. Clarify the purpose before engaging lenders. If the goal is to bridge to …
Start with cash flow volatility mapping Owners with uneven cash flow need funding that matches revenue timing. Start by charting twelve months of inflows and outflows by week to see peaks and troughs. …
Understand the cost math Revenue based financing promises fast access to capital with payments tied to revenue. The headline multiple often looks simple: repay 1.2x or 1.3x the advance. Convert that …
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Map cash conversion cycles Working capital is a timing exercise: how long cash leaves the business before it returns. Start by mapping the cash conversion cycle across each product line. Measure days …
