Should You Apply To Multiple Banks For Funding?

Should You Apply To Multiple Banks For Funding?

We recently invited Scott McGregor, Commercial Broker at Mortar Finance to a webinar on the topic, ‘Funding Your Next Business Acquisition.’ 

Here’s what he said -

We have conversations with a number of banks to understand their appetites, but generally once we work out each different banks' appetite, their viewpoint to a transaction, potential structures that they may want to put in place and understand exactly where each bank's position is, then we have a conversation with our customer to go through those different structures and interest rates, security positions, and all things that are important. 

Work out where our preferred option is and then we would apply to that particular bank. Having an application with three or four banks isn't always the best way to go. It is about understanding which banks can deliver on what sort of criteria, and working at the most appropriate to put an application into. When we apply to a bank they will often do a credit check and the more credit checks you have on your profile within a short range of time can impact your ability to get finance.

It is important for us to understand what our clients are looking to achieve, what banks can help satisfy that requirement and picking the best one but that doesn't mean bank will come back with an approval, that might mean we have to look at another option, but we do as much research as we can upfront to make sure that when we put in applications on that bank and we figure we have got a better than good chance of getting that loan application approved.

 

Watch the full webinar, ‘Funding Your Next Business Acquisition’ at https://learning.benwalker.com/courses/fundingbusinessacquisition