The Triple “A” Funding System – Step Six – Lender Review
This week we continue our look at the unique Triple “A” Funding System, which is the system 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.
In last week’s blog, we looked at the important fifth step which is the Funding Application and this week we look at Step Six – the Lender Review.
At this point, the funding application has been carefully analysed by us and an application has gone out to one of our lenders. All lenders then carry out a full review of the application before providing feedback.
In terms of length of time, this step is often the longest in the entire 9-step process.
This is because, once the funding application has been sent in, the review process involves careful analysis and due diligence by the lender. Depending on the deal, the lender will carry out some or all of the following:
- Credit checks
- Analysis of all the information sent in by us as part of the initial application
- Valuations if a freehold property is involved
- Meeting with the client
These are all part of the important review process and need to be carried out by the lender.
Inevitably, this takes time.
For example, I had an application for the refinancing of an office building occupied by a consultancy company.
We had provided a full and detailed application, but the lender wanted some clarification around the accounting information. As part of their due diligence they also wanted to meet the client and of course they needed a valuation to be carried out.
As a result, the review process took approximately 3 weeks which included a review of the application, a meeting with the client on site and a valuation being carried out.
There are times of course when the lender review process happens much more quickly – within days, or even hours if it is an urgent bridging loan. The important thing during this lender review process is for us to make sure we as the broker manage our client’s expectations and keep them informed of anticipated timescales as matters progress.
Having worked on thousands of loan applications over the years, we have huge experience of the lender review process and provide an estimate to our clients of likely time scales as part of our service.
Once the lender has reviewed the deal it’s time to move on to the next step in the process when the lender approves the application.
We’ll talk about the Lender Approval process in next week’s blog.