At GRP Capital, we shepherd a loan request from an idea to receipt of funds. This process requires a lot of work and is what keeps our team busy.
One of our chief responsibilities is advocating for borrowers. Even in the recent economic uncertain times, we have continued to advocate for our clients, and successfully closed loans.
How GRP is Advocating for Borrowers:
• Representing our Client Through the Appraisal Process: Every business and property has to be appraised by an independent third-party appraisal as part of the underwriting process. Recently, we felt that an appraiser didn’t understand the strong profitable business potential of our client’s business. The appraised value was far too conservative, due to the COVID-19 downturn. As a result of the low appraised value, the lender wanted to lower the loan amount. Furthermore, the seller was unwilling to sell at the lowered amount. We were able to explain to the lender why the appraisal was inaccurate and advocate for a second appraisal.
• Convincing Lenders of the Fundamental Strength of the Borrower: We have developed strong partnerships with our network of lenders. We know that lenders are risk-averse. Therefore, we help to explain the fundamental strength of our borrowers (their ability to operate profitably and pay back loans) as well as the fundamental strength of the business they are funding. Our lenders are experts in financing. On the other hand, we try to become experts in our clients’ business plan, their challenges and opportunities.
• Saving Clients Money: We recently helped restructure a loan and saved months of payments for our client. The Small Business Administration is offering a six-month period of no payments for loans closed and fully disbursed by the end of September. We helped restructure a loan for a client who wanted to do a minor renovation. By not including the renovation in his loan, his loan will be fully funded and disbursed by the September deadline. As a result, he will reap the benefits of six months of no loan payments. Instead, he can use the working capital that we structured into his loan for this renovation. Understanding the funding timeline and working with our client to take advantage of the SBA program was invaluable to our client.
Every Client is Unique:
• Understanding Clients’ Funding Needs: Each loan is unique and each client is unique. We spend a lot of time getting to know our clients, so we can explain to a lender why their funding goals are appropriate. Because we don’t have a cookie cutter approach, lenders give us the time we need to advocate on behalf of our clients.
Borrowing Now:
Our Great Opportunities series discusses various aspects of the changing economic climate. There are still opportunities to secure funding for specific business plans. Read more about other aspects of finding funding in today’s climate here:
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