December Newsletter 2021

December 2021

The Bank Didn't Approve Our

Funding Request...Now What?

As 2021 comes to a close, banks remain cautious about funding businesses.

In many cases, banks are denying capital requests and not working with

companiesto provide critical funding. Despite roadblocks put up by banks, there
are still facilities able to help businesses advance and prosper.

ThermoCredit is here to help your business grow and our team

stands ready to provide the capital you need to succeed.

Since 2002, we have approved more than $1,000,000,000 in financing to some of

the biggest names in the communications and technology industries. We helped

them expand, acquire, and rollout groundbreaking initiatives.

ThermoCredit can do the same with your business.

ThermoCredit is proud to be a direct lender. In addition to funding, ThermoCredit and our partners provide business evaluations, consulting, facilitation of mergers/acquisitions, and much more. No middlemen. No red tape. One point of contact and the same team that initiates your loan services your account.

It’s your roadmap and we are here with the resources so you can achieve your business goals.

Fundamentals of Due Diligence

Due diligence is a comprehensive investigation or detailed audit of a seller’s

business records initiated by a potential buyer or Funding Source that takes

place prior to signing a contract or entering into an agreement. The importance

of undertaking the due diligence process cannot be overlooked, especially with

mergers and acquisitions. By uncovering facts and collecting information, a buyer

receives peace of mind from knowing the benefits and risks of getting involved

with the seller.

When conducting a due diligence report, these are some of the most important

elements to uncover in order to confirm the accuracy of the seller’s information

and appraise its value.

Financial Records

Buyers will want to examine the seller’s monthly, yearly and annual financial statements for at least the past three years. Have financial statements of the business already been audited? If so, how long has the audit process been underway? It will also be important to determine if revenue is increasing or decreasing as well as confirming projections for future growth are realistic.

Intellectual Assets
Has the seller taken the appropriate steps to protect its intellectual property? Will there be any agreement issues with current/past employees relating to invention/confidentiality? Does the seller have rights to all copyrighted material being used? If patents have been issued, are they properly protected? Have products and services received trademarks or service marks?

Customer Base
The buyer will want to know who the most valuable customers are and what amount of revenue they bring in. Are the customers currently satisfied with the level of service they are receiving? Is there a risk some customers may leave if an acquisition or merger takes place?

Strategic Fit

Do the buyer and seller currently align with a shared business goal? Or will the success of the relationship be based on future events? Does the buyer already have the products, services and technology offered by the seller or will the company inherit totally new assets? Are key employees likely to stay or resign as a result of the buyout?

Property Assessment

Analysis of property owned or leased by the seller used in the course of business including deeds, titles, mortgages, zoning requirements, and operating procedures.

Material Contracts

The buyer must be prepared to take over any commitments the seller has. This includes working capital, credit obligations, supplier accounts, equipment leases, vendor contracts, and employee obligations.

Tax compliance

Is the seller current on all Federal, State, and local tax filings? Are all tax payments up to date? If not, have payment plans been negotiated with the taxing authority, and are they up to date?

Litigation Issues

Is the seller currently involved in any legal proceedings? If there has been litigation what was the outcome?

The information obtained during the due diligence process will benefit both the buyer and seller and help close the deal. Though time-consuming, conducting due diligence will provide a wealth of information not always available to make educated decisions. Arm your business with the knowledge it needs to succeed.

Tips to Help Your Business Secure a Working Capital

Finding ways to fund your business goals can be challenging. Securing working

capital is often an essential step on the path to your business’ future growth.

Whether you are seeking working capital from a traditional bank or alternative

funding, research and preparation are critical to ensure your business’s long-term

viability. With the right planning, you can be confident your business will secure

the needed capital you need to achieve your business goals.

Determine Exactly What You Need

Before you begin searching for a funding source, determine exactly what type of

working capital you need and how much you need to borrow. Research the types

of funding and types of funding sources before deciding which would work best

for your company. Traditional banks provide working capital, but have very

specific requirements that small or young businesses may not be able to meet.

Thermo Credit provides personalized funding to businesses based on assets or

can help your business via the SBA.

Have a Plan

Funding sources want to know you have a plan for your business and know how you plan to use the funds you borrow. Make a detailed outline of your business goals and the steps you will take to achieve those goals. Include how you plan to use the funds you borrow and how the funds from the working capital will help your business grow. At ThermoCredit, we want to help you create a road map to achieve your business goals and help you secure the funding that you need to follow that road map.

Organize Your Documents

Make sure that you have all your business-related documents in order before applying for capital. Funding sources give working capital to businesses that are organized and reliable. Your records are proof your company and plans are good financial risks. Gather everything from your tax returns and balance sheets to your accounts receivable. Demonstrate your financial awareness and the credibility of your business. Make sure your funding source knows that you are a good investment. ThermoCredit looks at your whole business and invests in your future, so show us what makes your business unique.

Financing your company’s growth can seem like an overwhelming task, but it doesn’t need to be difficult. Do your research and determine what your business needs to achieve your goals. Then make a plan and organize your financial documents to show your funding source why you deserve the requested capital. Contact ThermoCredit to create a personalized plan for your business and discuss funding options that can best help your company meet its full potential.

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