What to do when you really need your project approved!

Getting your next project approved is a bit like dating:  You need to present yourself positively and professionally at the first night out ‘cuz you do not get a second chance to make a first impression.  Candidly, this rule of thumb applies to the full range of project applications we see from the $30 Million transaction we’re in documentation and closing as I write this to the $54 Thousand “application only” that’s awaiting construction completion for funding in our small ticket portfolio.

It all begins by having your ducks in a row!  When you can succinctly tell the story about the importance of the project to all the stakeholders; the value of the project regardless of whether it is successful or not – the rainy day argument; and, how reliable are the payments, you improve the likelihood of approval.  In fact, here’s a recent case study worth talking about – both large and small:

Our $30M closing was a quasi-project finance with a company not quite into positive EBITDA – close but not yet there.  However, they were able to document a highly reliable source of repayment for the project – contracted revenue; and, there is a well established collateral curve for the equipment in the resale market.

And that $54 Thousand application only financing was very straightforward:  Mission critical equipment they need for their business to operate efficiently and safely; solid bank, credit and trade references; and, a stellar record for the vendor providing many years of support ensuring the equipment will last for many years to come.

A good bank, lender, investor or leasing company will coach you through the process and begin, up front, with what’s needed for you to win their confidence.  This is NOT an adversarial process because each of those holders of the checkbook does not make money if they don’t put money to work – their incentive to approve your request is very real.  And when you begin by sourcing banks, lenders, investors and lessors that fit your needs, the rest falls into place nicely.