Questions to ask when talking to a potential financing source
If this is your first time seeking financing to help your business grow, you may feel overwhelmed by the different kinds of lenders that are looking for your business. Here are some questions companies like yours often ask to help make a funding choice that best fits the needs of your company.
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Are you a broker or a lender?
Capital Solutions is a lender. Learn the difference between brokers and lenders. -
What is your interaction with my customer?
Capital Solutions believes your relationship with your customer is your most important asset and your customer should be treated with equal care as our own customers are. -
What qualifications do you evaluate to make a decision on whether or not to work with me?
Capital Solutions has simple, easy-to-qualify, requirements that do not require a long, bank-type, approval process. -
Do your clients have a credit line amount? If so, what do you base it on?
Capital Solutions does not impose credit lines. The amount of money we can make available to you is determined by your company's ability to produce valid invoices. -
If my business grows quickly, will your financing grow just as quickly to keep pace with me?
Capital Solutions funding grows as fast as you do. As your company grows, the amount of funding we can offer grows. We are in this together-our growth depends on your growth. -
What restrictions and/or costs do you place on ending a financing agreement with you? If I decide to leave the relationship after 3 months, would it cost me anything and if so, how much?
Capital Solutions allows you to end our arrangement at any time and with no risk or cost to you. Guaranteed. -
May I get references to contact about the quality of service your firm provides?
We will gladly give you references to contact that will discuss the quality of our services. You can also check what other Clients and ex-Clients like you have said about us in the past as well as well known trade publications. -
Do you require personal guaranty from the owners of my company?
Since we are mostly relying on your receivables to provide you with funding, there is no need for any personal guarantees when you use Capital Solutions. -
Do you, the lender, bear the risk if your customer enters bankruptcy or do I?
Capital Solutions will bear the risk for any invoice owed by a customer of yours that enters bankruptcy. You will not owe a dime. -
How fast after I send you invoices do you actually fund me?
Capital Solutions can often send you money the same day we receive your invoices. -
How do you send me my money and what are the charges for expedited services like wire transfers?
Capital Solutions will always wire your funds (that means same-day availability to you). We charge you what we are charged — currently $14 per wire. -
Who would I be dealing with on a day to day basis?
Clients of Capital Solutions deal with an experienced business finance expert — usually the Operations Manager — who is fully empowered to make funding decisions. -
Do you have a Credit Committee?
Capital Solutions has no credit committee. -
How are your fees calculated? Are they a "flat" fee (example, a 4% flat), or are they proportional to time? Are there any "line fees," "maintenance fees," "monthly fees" or the like?
Capital Solutions fees — amongst the lowest in the market — are determined by the time we need to wait for payment by your clients, which is the most fair way to calculate them. Your actual rate will be based on the volume of invoices you ask us to fund. We do not charge any line or maintenance fees. -
Do I have to have ALL my customer's invoices funded if I work with you?
Capital Solutions can fund all of your invoices or just the ones you choose. It is entirely up to you. -
How long does it take to get me (Client) signed up? What are the set-up fees and are they refundable if for some reason you don't approve me?
It takes Capital Solutions just a few days to get you set-up for us to begin buying your invoices from you. Our one time set-up fee is minimal and is fully refundable.
Contact us to have these and any other questions you may have answered by one of our business finance experts.
