How We Work: A Careful Hands-On Approach
Debt and Equity Financing for Companies, Businesses and Corporations
Once turned down by their existing financing source, most companies have trouble obtaining financing on their own.
THE PROBLEM? They are not telling their story in a manner acceptable to many financing sources and they are not telling their story to the right people.
THE SOLUTION? We know how to present companies to each financing source and get results. Our process and payment timeline is depicted below before and after our being engaged. There are only 3 reasons for financing: ACQUISITION, EXPANSION, TROUBLED COMPANY REFINANCING.
Process of Obtaining Financing
Before we are engaged, we must determine whether our prospective client qualifies for the financing they seek and there is a critical mass of interest in a financing. This involves a process that matches the prospective client with the right institutions that will provide the financing they seek. For starters, this entails answering 4 questions at no cost to the company:
- What business are you in?
- What are your revenues? (Must have $10 million or more in revenues)
- How much financing do you need?
- For what purpose do you need it?
When you contact us and answer these questions, we take you through the process of obtaining financing step by step.
At each step in the qualification process if there is not enough interest from financing sources the process stops before any money is expended.
This engagement process results in higher advance rates, lower interest costs, and better terms and conditions for our clients.
Our process from start to finish takes an average of 57 days.
Once we receive answers to the initial questions, we will match you with 5 to 10 institutional sources based on the size of the financing, the industry, and whether it is equity or debt financing or a combination of the two. If we get a critical mass of interest — usually 3-6 or more — we proceed to the next step: a due diligence visit. This visit ensures that you and your facilities are of the quality required by the financing sources. If the client is local, there is no charge. If the visit requires travel to another city, there is a small per diem and travel expense.
Presuming our due diligence is successful, we present our findings to the financing sources that have expressed preliminary interest. These sources are screened to ensure that they are coming to visit your company with a view towards making an offer within the parameters of your needs. At this point, we are ready to be engaged. You, our client, has had no outlay of funds until now. The engagement entails AMG producing a written presentation to the financing sources which takes about a week, and scheduling the visits of the interested sources. Usually there are 3-6 visits. Again, On average it takes 57 days for a debt financing to take place. Equity takes about 30 days longer. Almost 30% of our financings are done with institutions that have turned down the company's financing opportunity before our involvement.
Our engagement fee is deducted from the success fee. The success fee is a percentage of the financing. These fees are agreed to in writing before the financing process takes place.
Our careful adherence to this process guarantees the maximum results possible for our client's financing needs, and why our success rate is so high.
Call us today at 1-800-869-8789 or 1-310-454-1114 or contact us here for a no-obligation assessment.
