Presently, closing rates for banks are less than 20% and on any given year, approximately 15 million US main street businesses are going to apply for loans and only 18-19% are going to be successful.
Statistically, 59% of the loans are for some form of expansion and that dovetails into what we do.
We look at cash flow enhancement, we look at expense and tax mitigation. In other words, we first look at enhanced profitability. Invest in your employees, invest in your infrastructure, invest in the next stage, that is the 59% mentioned above. Now, what about the other 41%? They are pursued for the purposes of survival, to make payroll, to keep the lights on.
We are an organic organization in that we don't worry about focusing on one particular product. We work on focusing on the client as a whole and bringing everything to the table and identifying what they need to best suit them. With our software (which we don't sell) we can often increase their profitability 5, 10, 15 and even sometimes, 20% at NO cost or risk to them. We drastically impact them to that end while at the same time facilitating enhanced odds they they'll actually qualify for a loan!
So, why are our closing rates 80%?
When you to go to a bank, you're working with that bank. It's limited options, it's limited criteria. With us, we can pickup the phone and reach the senior vice-president of hedge funds and throw questions out to them about your loan, so that makes a big difference. We can go direct to our group of 129 lenders and in addition, we are part of two networks that takes us out to every viable lender in the nation where all we have to do is put in a quick scenario and get multiple replies from those lenders, either yes, no, maybe give us a little more information. We have 15 hedge funds that we work with while focusing on two or three of them. Primarily, one of them has a four billion dollar portfolio, so they're very very deep and they just will go way out. We just got a request for nine loans from one owner of a particular industry and four of them were just not going to happen. Our head lender looked at the whole package and said "we'll do all of them together because the big ones are outweighing the little ones". That's the kind of communication we have with them!
That had been shopped like mad. It had been seen by everybody and nobody was going to touch it, nobody was going to do it. Then all of a sudden, impossible became possible! It's because of what we have built for the last quarter century. We can pickup the phone and speak to the underwriter or the senior vice-president and say "how can we make this happen?" They know we will work our fingers to the bone to get them everything they need, so they won't have to do that. They don't have to chase our clients, they don't have to ask for paperwork, we ask for it and get it from them. And that makes a big difference as to how far out in the field our lenders will go for us.
Other things we do: There are only a few brokers in the US that even do securities portfolio lending. And that is where someone has a security portfolio, and literally stocks, bonds, mutual funds and we're able to do lending against that. And yet they still get to keep them.
Another scenario is when people come in with a 401k or an IRA and we are able to convert that to another type of tax deferred entity and get money out for them to use for investments.
The bottom line is that if your company is in the US, we are more than likely to get you financing. It takes 5-minutes to get the ball rolling. Just answer 2 questions at BusinessRefundEstimate.com
Brokers welcome!
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