Capital Sourcing Debt Raise Process
Our Debt Raise Process
Raising Debt Is Confusing and Stressful.
Working with Waypoint Private Capital Isn't.
Whatever the reason for your debt financing need, there is usually a solution that can be found if you know your options and approach the financing correctly.
Following is an overview of our 5-Step Debt Raise process:
Step 1: Determine Need
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Perform financial analysis to determine what level of debt the cash flow and collateral of the company will support. Compare that to the needs of the business.
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Analyze how the available debt amount will differ by lender type, and determine which types of lenders will best suit the needs of the company.
Step 2: Prepare Marketing Material
Business owners should make it easy for the lenders to analyze the business and make a lending decision. To do this, companies should prepare the following for the lender:
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Business Plan that clearly describes the business and its history,
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Financial Model showing
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cleaned-up historical financial statements (removing all non-recurring items),
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how the business will use the money,
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financial forecasts, and
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cash flow generated by the business that will be used to repay the loan.
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Executive Summary of the business plan and financials
Well-prepared materials demonstrate professionalism and thoroughness, helping to build trust with potential lenders and showing them that you will be an easy customer to manage.
Step 3: Identify & Approach Lenders
When we analyze a company and their reason for seeking debt financing and compare it to what we know about the different types of banks and alternative lenders, we can quickly zero in on which type of lenders will be interested in working with our clients.
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We search our proprietary databases for the lenders that we believe will be the best fit for your financing need.
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We send them the executive summary and make follow-up phone calls to ensure we reach all the targeted lenders and have a conversation with them about the opportunity.
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For interested lenders we send them the business plan, financial model, and other pertinent information that will allow them to dig in and analyze the loan opportunity further.
Step 4: Review & Negotiate Proposals
After lenders have reviewed the information provided and had conversations with the borrower, they will issue a proposal letter outlining the terms of the loan. After receiving the first proposal, we do the following:
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Solicit proposals from all other lenders who have shown interest in the opportunity.
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Compare the proposals to determine which are most favorable for the borrower.
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Do a scenario analysis to determine how appropriate the covenants are for the borrower and how likely they are to have challenges with specific covenants.
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Negotiate where necessary with the top prospective lenders.
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Solicit a commitment letter from the top lender and have the borrower sign it.
When those steps are complete, you have picked your lender and they have committed to making the loan to you.
Step 5: Closing Checklist and Funding
By the time the lender issues a commitment letter, they have concluded their underwriting and are prepared to fund the loan as soon as the borrower and lender complete the items listed on the closing checklist and the items are satisfactory.
Following is an example of items that may be included on the closing checklist:
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Business and/or real estate appraisals
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Land surveys
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Environmental site assessment
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Proof of insurance
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Corporate documents
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Loan documents
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Payoff letter from prior lender
Upon submission of all documents that meet the requirements of the lender, they will be ready to fund the loan.
Choose Waypoint Private Capital
to Raise Debt
Expert
Guidance
Our team of professionals has extensive experience in debt raising, ensuring you receive expert advice and strategic insights tailored to your business's unique needs.
Comprehensive Support
From initial assessment to final closing, we offer continuous support, streamlining the debt raising process and allowing you to focus on your business operations.
Broad Network of Lenders
With a vast network of banks and alternative lenders, we can connect you with the most suitable lenders and negotiate the loans you need to meet your financing goals.
Customized Solutions
We take the time to get to know your business and work closely with each client to make sure they are putting their best foot forward with each potential lender.
