Understanding the Summit Financial Resources process

We can often fund a company within 7-14 business days of turning in an application. Here is an overview of the six steps to activating and starting an Accounts Receivable Financing Program at Summit Financial Resources.

1. Helping you grow. Financing your accounts receivable could improve your cash flow by realizing immediate cash from your sales, without having to wait 30 to 45 days, if not longer, and without bumping up against a credit line limit, typical in bank financing. 

2. Pre-qualification. As a prospective client of Summit Financial Resources, you will be presented with a Client Application and asked to provide a recent Accounts Receivable Aging and Customer List.  The Customer List and Aging will be forwarded to our Credit Department to complete a preliminary review. At the same time, you should complete the SFR application in full and return the data requested to the Business Development Officer, which will start the Underwriting process. Completing this step will enable Summit Financial Resources to quickly evaluate your company's qualifications as a potential client.

Here are some basic questions SFR is attempting to answer in the course of the application process:

1. What is the commercial credit worthiness of your account debtors?
2. Are the goods and/or services that your company provides fully delivered and verifiable at the time of invoicing (this is critical prior to the initial funding)?
3. Is there anything that would prevent SFR from securing a first security interest in the company's accounts receivable (i.e., another lender, tax lien, etc.)?
4. If there is another lender, does the collateral being presented cover the amount owed to that lender?
5. What are the size of the invoices, frequency of invoicing, and how long does it take to collect your accounts receivable from the original date of the invoice?
6. Is your company a viable, well run business?

3. Proposal. Once your customer list has been qualified by our Credit Department, usually within 24 hours of submission, The Business Development Officer will fax or present a written proposal outlining the general terms and conditions of our offer to finance your company's accounts receivable.

4. Upon Acceptance of Proposal. Summit will begin the underwriting process related to your application for financing.  When the proposal is executed and returned to us, you will be required to include a deposit to cover the cost of credit searches, filings, and other out-of-pocket expenses incurred during the underwriting of your financing request.

5. Preparation of Documents. Once your financing request is approved, a formal set of Financing Documents will be prepared and sent overnight to you for review and signature.

The Financing Documents package may include the following documents to be signed (some notarized, as noted) by the authorized officer(s) of the company:

1. Financing Agreement
2. Certificate of Corporate Resolution (if applicable)
3. Personal Guarantee or Guarantee of Validity
4. Customer Notification Letters
5. Disbursement Authorization Document
6. Schedule of Accounts on which you sign and list the invoices you want SFR to finance
7. Wire Instructions
8. UCC-1 Statements

6. Pre-Funding. Once the Financing Document package is fully completed correctly and in full, your account will be assigned to one of our Account Executives to complete the steps necessary to fund your request.  This process involves:

1. Verification of invoices submitted for financing.
2. Completion of final due diligence.
3. If there is another institution currently in a first priority secured position with respect to the accounts receivable, SFR will obtain a payoff figure and obtain UCC releases with regard to this collateral from said institution.
4. Review of the daily working relationship between your company and the SFR Account Executive assigned to manage your account, including a review of SFR's On-line Account Reporting System.

7. Funding.  Once the pre-funding process is completed, funds will be transmitted to you by check or wire.  

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