The Triple “A” Funding System – Step One – Deal Recon

In last week’s blog I introduced the Triple “A” Funding System, which is a 9-Step System we’ve devised and created as a result of working with thousands of business owners over the last 25 years.

The Triple “A” Funding System is the “roadmap” we use every time we work with a client and has been designed to make accessing business finance both easier and more effective.

As I mentioned last week, the Triple “A” Funding System is made up of three phases: Analysis, Application and Approval and within each phase there are three separate steps making it a 9-Step process in all.

And we begin this blog series with arguably the most important phase in the whole process – the Analysis Phase and start with step one – the Deal Recon. Let me explain what it is and how it works.

When I carry out a Deal Recon with a client, it typically consists of an initial and introductory 15-20 telephone conversation. The sole purpose of the Deal Recon is to gain an understanding of a client’s funding requirements and essentially establish an answer to the questions: “Is there a deal? Can we help”?

Many times, the answer is yes. But sometimes the answer to a business owners enquiry for finance is no. For any number of reasons, the deal is simply not ‘bankable’.

However, very often at the Deal Recon stage, the answer to a client’s initial enquiry for finance is “yes, but….”

What I mean by this, is that having discussed the clients funding requirements, we have established that “yes, there is a deal to be done and funding could be considered”. However, we are going to require more information or perhaps some form of deal re-structuring may be required.

Regardless of whether our response at this stage is yes, no or maybe, during the Deal Recon step, in every case we ask a series of questions designed to quickly establish how we can help.

We go through the same process every time we carry out a Deal Recon with a new client. So, if you need to raise finance, have a think about some or all of these questions:

• How much funding do you require?
• What is the purpose of raising business finance – what is it for?
• What type of transaction is it – purchase/refinance/capital raise/asset finance etc?
• Are accounts available?
• What will the security be?

There are other questions we will go through when we speak to you, but the questions mentioned above are important because it means we can quickly establish:

• Is there a deal?
• What is the reason for raising finance?
• What is the collateral for the loan?
• How will the loan be repaid?

Whilst on the face of it, these initial questions may seem straightforward, they form the basis for how we structure a funding application going-forward and are therefore important questions to answer.

So, if you need business finance, take some time to think through in your own mind the answers to some of these questions.

This means you’ll then be prepared for the next step in the Triple “A” Funding System – what we call the Deep Dive Evaluation.

Until next week!