When it comes to getting the debt financing your middle-market company needs, time is money. The more time you spend chasing lenders or pursuing dead-end deals, the less you’ll have for what matters most: Growing your company and taking it to the next level.
Before you start the hunt for your next loan, take a look at your approach and the ways it’s costing you time. Then, know that there’s a better way.
1. Relying on relationships for term sheets
Does this sound familiar to you? You reach out to the banks you’ve worked with previously when you’re looking for your next loan. The banker asks you questions, prepares a pitch and a presentation. They seem enthusiastic and even confident that you’ll get the loan. As a result, you leave the meeting certain that the money is yours.
Then reality sets in. The bank’s underwriting team reviews the details and says, no way. There’s no deal. You’ve just lost time pitching a mission-critical deal to the wrong lender.
There are faster ways to find a good lender match. With CAPX, your talks with the lender don’t start until they show you the term sheet. This removes the biggest inefficiency of the conventional lending process, giving you greater confidence that the deal will go through.
2. Dialing for dollars
It’s not just the time that goes into building relationships with lenders that can set your company back. Using manual processes, especially in an age of automation, burns up precious time. Without CAPX, you have no choice but to pick up the phone and reach out to banks and lenders one by one.
CAPX has built-in tools that increase efficiency, creating credit memos and communicating your company’s needs and wants with multiple lenders. Our communication tools put you in contact with lenders and help you monitor the entire deal process.
3. Repeating the same steps
Running introductory calls, drafting written responses, and getting on more calls (all before knowing whether a term sheet is in the cards) uses a lot of your time—and gets repetitive.
CAPX boosts efficiency (and cuts down on repetition) for you with a question-and-answer (Q&A) interface for lenders and borrowers: lenders can submit questions for borrowers to answer just once to share with all, in addition to allowing borrowers to proactively develop Q&As to preempt certain questions they are expecting.
4. Not viewing risk the right way
Who’s in control of your company’s risk narrative? If you are not the one to manage the risk perception of your deal, your relationship lender will—which can result in a term sheet that looks quite different than what you expected (if you get a term sheet at all).
CAPX can help you take control of your risk narrative and position your deal to lenders who are likely to bite. We work with you to develop a credit perspective that saves your time and delivers capital as efficiently as possible.
Stop losing precious time chasing dead-end lenders. See how CAPX’s data-driven, end-to-end marketplace can help you quickly obtain the capital you need.
