Questions to ask when talking to a potential financing source
If this is your first time seeking financing to grow your business, you may feel overwhelmed by the different kinds of principals, lenders and options available. Here are some common questions to ask when searching for funding that best meets the needs of your company.
- Are you a broker or a principal/lender?
Capital Solutions is a principal. Learn the difference between brokers and principals/lenders.
- How do you interact with my customer?
Your relationship with your customer is your most important asset. Your customer is treated as well as we treat our own customers. Because your customers are critical to your business, you can see exactly how we work with your customers.
- What does it take to qualify for funding from you?
Capital Solutions has simple qualification requirements that don't involve a long approval process that most banks have.
- Do your clients have a credit line amount? If so, how do you determine what it is?
Capital Solutions does not impose credit lines. The amount of money we can make available to you is based on your company's ability to create valid invoices.
- If my business grows quickly, will your financing keep up with my business?
Capital Solutions funding grows as fast as you do. As your company grows, the amount of funding you can get grows. We are in this together -- our growth depends on your growth.
- What restrictions and/or costs do you have if I end a financing agreement with you? If I decide to leave the relationship after three months, would it cost me?
You can end our arrangement any time and with no risk or cost to you. Read our easy-to-understand guarantee.
- May I get references to contact about the quality of service your firm provides?
You can count on receiving a list of references to contact who will tell you what it's like to work with us, including the quality of our services. You can also read testimonials from current and past clients.
- Do you require personal guaranty from the owners of my company?
Since funding mainly relies on your receivables, there's no need for any personal guarantees when working with Capital Solutions.
- Do you bear the risk if your customer enters bankruptcy or do I?
Capital Solutions bears the risk for any invoice owed by your customer that enters bankruptcy. You won't owe anything.
- How fast do I receive funding from you after I send you the invoices?
Capital Solutions can often send you money the same day your invoices come in to us.
- How do you send money? What are the charges for expedited services like wire transfers?
Capital Solutions always wires your funds, which means same-day availability to you. We charge you the same amount the wire services charges us — currently $14 per wire.
- With whom will I deal with on a day-to-day basis?
Clients work with an experienced business finance expert — usually the operations manager — who is fully empowered to make funding decisions.
- Do you have a credit committee?
- How do you determine your fees? Are they a flat fee, or are they proportional to time? Are there any line fees, maintenance fees, monthly fees or any other fees?
Capital Solutions fees — amongst the lowest in the market — are based on the time we need to wait for payment from your clients, which is the fairest way to calculate them. Your actual rate is based on the volume of invoices you ask us to fund. There are no line or maintenance fees.
- Must ALL my customer's invoices need to be funded through you if I work with you?
Capital Solutions can fund all, some or one of your invoices. It's up to you.
- How long does it take to sign up a new client? What are the set-up fees and are they refundable if you funding my business?
It takes Capital Solutions just a few days to get you set-up to begin buying your invoices. Here are the steps to receiving funding from the initial conversation. The one time set-up fee is minimal and fully refundable.
Please feel free to contact us with any other questions and to see how your business can grow with our help.