Streamlining the Lending Process

How EROC Advisors Serves Clients Seeking Capital

Navigating the lending landscape can be a challenging and frustrating experience for business owners. It’s not uncommon for owners to face a series of setbacks with their current lenders, from increased interest rates and unfavorable terms to outright rejections for loan renewals or expansions. This frustration often leads to a time-consuming and inefficient process of seeking new lenders, which can detract from the core operations of the business. EROC Advisors is here to change that narrative.

Lending Scenario Example

Many business owners are all too familiar with the scenario where their current lender delivers bad news. Whether it’s a refusal to renew a loan, an unexpected increase in interest rates, or demands to pay off the loan, these situations often leave owners scrambling for alternatives. The typical process for finding a new lender is fraught with inefficiencies:

  • Networking and Referrals: Owners reach out to their network for lender recommendations, which may or may not be suitable.
  • Initial Outreach: Contacting multiple lenders involves setting up meetings, sharing financial data, and creating forecasts.
    Wasted Effort: A significant portion of these meetings don’t result in further conversations, wasting valuable time.
  • Extended Negotiations: Even with potential lenders, owners and CFOs spend countless hours negotiating terms, only to face additional delays for loan approval.

This traditional approach not only consumes significant time and resources but also distracts owners from focusing on their business operations, potentially impacting performance.

The EROC Advisors Approach

EROC Advisors offers a streamlined, efficient, and expert-driven process to secure the best lending solutions for business owners. Here’s how we turn the typical frustrating scenario into a seamless experience:

  • Initial Meeting: We begin with a comprehensive meeting with the business owner and CFO to understand their concerns with the current lender and to gather readily available financial statements.
  • Expert Review: Our team, leveraging over 50 years of lending experience and a history of funding over $1 billion in loans, conducts a detailed review of the financial information as if we were making the loan ourselves.
  • Tailored Advice:
    • Quick Assessment: If we determine that the current lender’s terms are market-competitive, we advise the owner to stay put, saving them time and effort, at no cost.
    • Strategic Plan: If a better solution is possible, we develop a plan identifying 3-5 suitable lenders, clear these options with the owner, and prepare a concise confidential information sheet.
  • Market Execution: EROC takes the loan to market, managing the process and data, working closely with lenders to gauge interest, and then setting up meetings for the owner.
  • Negotiation and Commitment: We assist the owner in evaluating term sheets, selecting the best option, and securing a commitment letter. Our team reviews the commitment letter in detail, ensuring the rates, terms, and financial covenants are favorable and manageable for the business.
  • Finalization and Support: EROC reviews the deal points of loan documents, advising the owner to engage their attorney for a thorough review. We then facilitate the loan closing, ensuring all terms are met and the owner’s interests are protected.

Throughout this process, EROC ensures that the owner remains focused on running their business, while the CFO continues to manage financial operations effectively. Our goal is to find the right long-term partner for our clients, a lending partner that understands the business and wants to support your goals and objectives. Our success is tied to the success of our clients – if a loan doesn’t close, EROC doesn’t get paid. This alignment of interests guarantees that our efforts are fully dedicated to achieving the best possible outcomes for our clients.

In summary, EROC Advisors transforms the cumbersome and often discouraging process of finding capital into a smooth, efficient, and expert-guided journey. By partnering with us, business owners can rest assured that they are getting the best possible support and solutions for their lending needs, allowing them to focus on what they do best – growing and managing their businesses. Let’s connect!