Connecting Opportunity with Capital.
Frictions in the loan application process result in an underfunded business sector. Applicants can find themselves in a confused process.
The Need to Optimize
Lenders often take a really, really long time to under deliver. Viable deals fall through the cracks. Multiple options are rarely sought. And application logistics become a material detriment in the evaluation of a new business opportunities.
The goal is to access the required capital under the best terms possible. Those terms are a mixture of pricing, structure, and flexibility. Like any market, accessing the best option available requires either exploring all of those options or motivating competitive behaviour from each of your options.
Going it Alone
Business owners must determine their options, co-ordinate meetings, determine information requirements, gather that information and then handle the back and fourth with each lender to access a term sheet.
The problem is that they often make it more difficult for Lenders by adding a layer between lender and the business (to preserve their compensation) without adding value to the communication.
The Problem with Brokers
The two main issues with brokers are their fee structure and value. Many Lenders simply don’t entertain brokered deals so many brokers don’t bother seeking those options. A loss for Business Owners.
The Fee Structure is often opaque and isn’t a true market rate. When fees are layered on top of lender rates (lender offers 4.5%, broker shows client 6% and pockets 1.5% PER YEAR going forward) the effective fee can be huge.
Brokers approach lenders by forwarding partial information and a glossed up picture of the company.
Often Brokers become an extra layer between lender and the business without adding value to the communication.
FiFlows increases transparency AND optimizes the process for Lenders too.
Here's how we'll do it.
We make it easier for BOTH Businesses and Lenders to also make it as easy as possible for the other.
Taking on the difficult tasks
In order to align the incentives of Businesses and Lenders we need to start by reducing the costs for both parties. From Opportunity to Deal Closing the transaction frictions are in communication, co-ordination, information gathering, and information processing.
What We Do
Fiflows builds a custom application for each business. That application is built to give us the pieces required to build applications for each lender. Our deal team analyzes the business case for the applicant just as each lender would. We propose a range of viable deal structures. Once the business agrees, we engage each lender simultaneously.
A quick single application process for Business Owners that delivers every offer available. A fully formed applications for Lenders that is built to their specifications. The messy stuff gets handled by us. Our smart processes and automation are built to optimize the process.
By lowering the ‘cost’ of applying, more businesses will seek capital from lenders. Our online applications allow for greater geographical reach (it’s much easier to drive to a banking center WITH a term sheet in, than it is on speculation). It also allows for a more granular focus on industry or asset type.
We take in raw inputs from Businesses and put out value added outputs to Lenders.
Our workflow has been built to meet the needs of businesses who need capital AND lenders who have it. Our team consists of former commercial lenders, credit underwriters, tech professionals, private sector executives, and tax & wealth experts.
The confluence of these factors result in more business getting done.
Building a Network
We partner with like-minded individuals and businesses looking to connect businesses and capital. Please reach out with an introduction or suggestion. We also have a referral program to reward deal spotters and are open to building a value added partnership.