First Business


Products and Process

Credit Facilities / Terms

  • Committed or demand facilities
  • 2–4 year contract term
  • Up to 85% of eligible accounts receivable
  • Up to 60% of eligible raw materials and finished goods inventories; higher if supported by an appraisal
  • Up to 80% of appraised liquidation value of equipment with an amortization schedule of up to 72 months
  • Up to 75% of the appraised value of owner occupied real estate with an amortization schedule of up to 180 months
  • Personal guarantees in most situations
  • Modest covenants structured on the necessary cash flow to service the contemplated capital structure
  • Interest rates floating based on Wall Street Journal prime rate with a floor of 5%
  • Competitive closing and facility fees
  • Periodic audits conducted by First Business Capital Corp. staff at competitive rates
  • Bank participations welcomed

General Features / Terms

  • Committed documents with financial covenants
  • Competitive pricing: prime based; reasonable fees
  • Limited personal guaranty where appropriate
  • Flexible cash management options — local banking
  • 2 or 3 year loan agreement

Client / Transaction Profile

  • Manufacturers, Distributors, Processors, and Business Service companies
  • Privately/closely held ownership
  • Sales of $5 – $50 million
  • Referred to First Business Capital Corp. by an advisor
  • Critical timeline/sense of urgency
  • Structural change in the business
  • Recent performance (last 30-90 days) indicative of future
  • Trade Accounts Payable no longer an issue after First Business Capital Corp. financing

Pre-proposal Information

  • Current & prior year comparable interim financial statement
  • Last 3 individual monthly financial statements
  • Prior 2 years of fiscal year-end financial statements
  • Monthly projections (income statement & balance sheet)
  • Accounts receivable & payable agings (same date as F/S)
  • Inventory reports summarizing composition & locations
  • Most recent borrowing base certificate from current lender
  • Product brochures, business plan, & industry analysis
  • Shareholder composition, management/owner bios
  • Personal financial statements of the principal shareholders
  • M&E appraisal
  • Real estate appraisal, most recent survey, & Phase I environmental assessment

Process Time Line

First Business Capital Corp. will respond as the circumstances determine. We are able to conduct many activities concurrently.

  • Review request and information provided
  • Visit: meet owner/managers; tour operations
  • Prepare Proposal Request
  • Review Proposal Request; issue Proposal Letter
  • Execute Proposal Letter; receive deposit; schedule audit
  • Audit 4-8 days; appraisal within 2-4 weeks
  • Review audit; present request to DLC for approval
  • Prepare and finalize documentation; close
  • Expect to close within 4 weeks of the start of the audit


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