The Triple “A” Funding System – Step Nine – Funds Released
In our blog over the last number of weeks, we’ve been examining the Triple “A” Funding System.
As I’ve explained in previous weeks, the Triple “A” Funding System is a unique process we use every time we work with a client. It is a specially devised 9-step system which speeds up the process of obtaining business finance for our clients.
And in this week’s blog, we’ve reached the final step in the 9-Step Triple “A” Funding System. This final step in the process is called “Funds Released” and is the point where all the hard work has been done and the lender is ready to release funds.
Release of funds by a lender can happen in a variety of ways.
If you have applied for an unsecured business loan, then release of funds is very straightforward. At completion, the funds come straight into your nominated bank account, which is normally the bank account of the business.
With asset finance, if it is a purchase of new equipment, then it is likely that the funds will be sent to the supplier of the equipment, who on receipt of funds will release the equipment to you.
If however, you are raising funds against equipment you already own, the funds will come directly to you as the borrower, again being sent to the business bank account you have nominated.
If the loan is an invoice discounting facility, then normally funds will be released directly to your nominated business bank account against the invoices the lender is taking as security for the facility.
Where the loan is secured against a property, then it is a little more involved and certain protocols need to be followed. This is because the lender wants to ensure that their legal charge is registered against the property. In addition, if there is an element of refinance taking place and an existing loan is being repaid, the new lender will want to make sure that the existing lender is fully discharged from the proceeds of the new loan.
As a result, in the same way as when you take out a mortgage on your own house, solicitors will need to be involved.
Funds will be sent from the new lender via their solicitors to your solicitor who will then complete the purchase with the vendors solicitor, or in the case of a refinance, repay the existing lender the amount they are owed and discharge their interest in the property.
Any surplus funds will then be sent directly to you from your solicitor who will provide you with a completion statement showing how the funds were distributed.
It is worth pointing out that whether you are purchasing, refinancing or capital raising against a commercial property, the same principle applies. Because the security for the loan is a property, a solicitor must be involved so that the legal requirements can be complied with.
And that’s it! Congratulations, you’ve just completed your commercial or business finance application and received your funds.
As I’ve mentioned on numerous occasions throughout this series of blogs, the 9-Step Triple “A” Funding System is the process we use every time we work with a client.
- It helps us structure the deal more effectively
- It speeds up the response times we get from lenders
- And importantly, it means you know exactly where you are in the process of applying for business finance
If you’d like to find out more, or you have a funding application you’d like us to take a look at, then give us a call on 020 8949 2122 or email us at email@example.com