There are many decisions to make about financing. Here are 5 steps you can leverage to successfully help choose the right financing options:
This may sound cliché, but most people don’t spend the time getting really crystal clear on their goals. What are you trying to accomplish? Is it leverage? Rates? This is important because it allows you to determine choices and direction.
Again, this may sound silly, but it's not. If you really value great service and certainty of execution, it will help you vet out things that are not. If all you care about is cost, cost, cost, and service/relationship doesn’t matter; just know that upfront. This way you can make better decisions as you widdle down decisions. Also know if you value your time, you might want to use an advisor to leverage.
Most people wait too long to get financing and are trying to cram things in. Commercial financing can take a long time and there are a lot of moving parts. Make sure that you are moving in a direction that gives enough bandwidth of time. Generally, if you are doing construction, work on it 6 months in advance. This way you will not be in a situation where you are trying to make rash decisions.
If you plan on scaling your firm, it will be important to choose a firm that can grow with you. Working with someone who can understand your firm, and then continue to find great financing solutions is critical. Trying to re-explain what your firm is about and how you got to where you are, is exhausting and unproductive. Make sure you partner with groups who can help take the load off.
Make sure you choose to work with someone who has shown a track record of success. Ask questions about how long they have been around. Ask how successful they are in getting deals funded. Ask about their specific process for getting deals closed. Do your homework to ensure you make the best decision for you and your firm.
For further questions please contact David Kotter at dave.kotter@integrity-capital.com or 480-219-1205.