Most companies that submit an application for financing don’t provide any additional information other than what is requested in the application. This is fine, since they are doing exactly what the application is asking for. However, you can improve your chances of qualifying for financing, and getting better rates, by doing one extra thing: submitting an executive summary.
In most cases, a business development officer (e.g. salesperson) will collect your application and do a write up about your company before submitting your file to the underwriting team. This helps the underwriters understand your company and your application better. But unfortunately, it also means that you are depending on the salesperson’s write-up to position your company with their internal underwriting team.
How an executive summary helps you
Many business owners can definitely do a better job at describing their company than a salesperson could. And as a matter of fact, the salesperson will be very happy if you do it for them, as long as you do a good job. This is where creating an executive summary can help you. It’s your opportunity to present your company directly to the underwriting team. With it, you can address any issues head on and present things in a positive light.
If you are considering applying for factoring invoices, be sure to include an executive summary with your application. It should be brief, concise and to the point. The summary should not be longer than a page or two. Most have five sections. The sections are:
- Company history
- Owner background
- Current market opportunity
- Existing and potential clients
- Current and expected sales