Path to Funding

The Path to Funding with Ludgate

The funding process, step by step.....

By Steve Grice, Director

  1. Give us a call.  We find that an initial chat over the phone can often be the quickest way to decide if our debt solutions will be the best option for you.  It should take no more than 10 minutes to establish eligibility.  If we can't help, we can point you in other directions.
  2. High-Level information.  Send us through the last 2-years accounts, any recent Management Information, cashflow forecasts and your business plan (if you have one).  We will also use publicly available information to help us come to a view on how to take your proposal forward.
  3. Initial Recommendation.  We will set out our advice on how best to raise debt for your business.  There are usually a number of different options which we will discuss with you, often with considerable differences in pricing and terms.  Using our long experience in both traditional lending and the P2P sector, we tend to know very quickly which lenders will be appropriate to any situation.
  4. Engagement Letter.  If you wish to proceed, we will ask you to sign our standard Engagement Letter and pay a small commitment fee.  All other fees and charges are success-based.
  5. Due Diligence.  At this stage, (if we have not already done so earlier) we will visit your premises to meet you face to face and get to fully understand the business.  You will also need to provide us with detailed information such as:
    • Previous Accounts
    • Sales Pipeline
    • Aged Debtors & Creditors Listing
    • Details of Contracts/Scheduled Work
    • Background on Directors/Shareholders including asset/liability statements
  6. Report.  We will then write our report for one or more lenders.  By this point we will already have had some informal conversations with their credit managers to gauge appetite so we know we're kicking at an open door.
  7. Negotiation. We will negotiate with the lender on your behalf to engineer the best deal to suit your proposal, with an eye to how any decisions taken now will affect your ability to grow the business and obtain further funding in the future; we sometimes find that what looks like the best headline terms now actually frustrates your ability to develop the business in the future.
  8. Accepting the Offer. Once you have accepted an offer, and depending on the lender, we will then liaise with solicitors to get paperwork produced and signed quickly.
  9. Drawdown of Funds. Drawdown follows after the paperwork is signed.  In most cases, lenders are keen to get their funds deployed quickly following the initial agreement to lend.
  10. Ongoing support. Ludgate like to have an ongoing relationship with their clients, especially where funding is part of a linked strategy over a number of months or years.  Ludgate also undertakes regular monitoring of funded businesses on behalf of some lenders and will act as the liaison point between your business and the lender.

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