Want to increase the chances that your factoring application will be approved? When you submit your application, be sure to include a one-page executive summary about your business that includes the following information:
- Owner background
- Brief company history
- Target market
- Current clients
- Your billing process
- Current and expected revenues
In most factoring companies, the application gets submitted through the business development officer, who then does a write-up on the business and submits the whole package to underwriting. Underwriting then reviews the application and makes a determination about funding.
The problem with this process is that you are counting on the business development officer to do a good job of “pitching” your company to underwriting. Why risk it? Instead, why not make the pitch yourself? It’s your business, after all. By writing the executive summary yourself and including it with your factoring application, you get the opportunity to position your company directly with the underwriting team. If you do a good job, you get the opportunity to make a positive direct first impression.
The executive summary can be really helpful if you need business financing because your company has serious problems. Weak financial statements could prompt an application rejection. However, a well-crafted executive summary that includes a turnaround plan can go very far in making your case for financing.
Lastly, if you are looking to get some basic information about factoring, be sure to watch our video – what is factoring?
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We can provide factoring lines with high advances at low rates. For more information, get an online factoring quote or call (877) 300 3258.