You’ve got the money. You’ve used it. Maybe you purchased inventory, paid payroll or repaired a piece of equipment. You are back in business and want to know if you can get extra funding without starting from scratch.
Good news: you can often do so. That is the crux of company funding renewal. But the procedure can be murky. How soon can you re-up? What have you got to send? How fast does it occur? And is that even the correct thing to do?
This guide will take you through it step by step. You’ll learn whether it’s worth renewing, what you need to prepare, how the process works and what to look for before you sign. Information on The Belmont Franklin Group can be found on its renewalprocess.com page. This is general information not financial advice.
What is Business Funding Renewals?
Renewal is a means for a current client to acquire more capital from the same source of finance. You’re not starting a whole new relationship. You build on what you already have.
The Belmont Franklin Group calls its renewal program a tool for clients to get more capital, ensure continuous cash flow and fuel growth.
Here’s the basic difference:
- A fresh application: you are a new customer and the provider starts from zero
- A renewal: you are an existing client and your history with the supplier is part of the picture
That history may make the procedure feel lighter. That’s not to say that approval is a sure thing.
When to renew?
It’s all about timing. Renew too early and you risk taking on funding you don’t need. If you wait too long you may miss a chance to progress.
The company says its terms for cash-advance and business-loan are less than a year. That means you can get funded again just months after your first investment round.
Here are some questions to help you decide:
- Is there a clear use of the money? Stock, gear, recruiting, advertising, seasonal spike
- Will the additional capital pay for itself? Estimate the Return Before Applying
- Can you afford another payment? Is your financial flow secure enough?
Here are several signs that you could require more capital:
- A large order or busy season is approaching
- You see an opportunity to grow that requires immediate cash
- Your equipment is dated and you’re losing sales
Signs you might not be:
- You cannot tell what the money is for
- Your present repayments are already straining your cash flow
- You only borrow because you can
Who can refinance?
Renewal is for existing customers only. The page notes that eligibility is determined by a variety of variables, including your sales and your relationship with the company.
In layman’s words, a provider will likely consider:
- How your sales stand presently
- Progress of your current financing to date
- Their relationship with you as a whole
The company estimates that over 95% of its merchants use renewal, with many renewing a third or fourth time. That is the company’s own figure so think of it as a claim not a promise on your behalf.
Things to do before you renew: A little prep saves days
What To Prepare
Collect these before you submit:
- Last 3 months bank statements. The page requests them.
- Sales and cash flow figures today. Be aware of what comes in and out.
- Your amount and purpose. How much do you want and why exactly?
- Your present balance and terms. How much money do you have remaining on your current funding?
- Basic business information. Name, contact info and anything else on your last application.
Stick everything in one folder. Then check it out. Are the statements full? Do the numbers add up to what you will write on the form?
How to Renew Your Business Funding: A Step-by-Step Guide
This is the route, following the method laid forth on the Belmont Franklin Group renewal site.
- Get in touch with the body giving you money. You can click the Apply Now button on the page, or contact info@thebelmontfranklingroup.com or call 281-453-1556.
- Fill out the one-page application. The firm calls it simplified. Fill it gently.
- Provide 3 months of bank statements. SEND FULL CLEAR PHOTOCOPIES.
- Await the review. The page mentions that you can get approval within 24 hours. For the corporation, make that a goal, not a promise.
- See the updated deal Read every. single. line. Cost, amount, reimbursement, fees.
- Get paid. Accept funding. Only accept if the figures fit your business.
Any questions along the way? The company also provides a FAQ page on loan administration and documentation.
Is it possible to obtain a higher amount or a lower rate?
Perhaps. Depending on your sales and the relationship you have with them, you could be eligible for a bigger amount or lower rate than you originally got, according to the page.
See the term “might.” There are no guaranties here. Providers may consider items like:
- Your sales tendencies of late
- How you have used your present grant
- The duration and quality of your connection
Don’t expect a better offer on the horizon. Get the numbers, ask for the numbers, compare to what you have currently.
What to Look for Before You Say Yes
This is the most critical step. Fast fundraising is excellent, but not if it’s the wrong kind of funding.
Check before you say yes:
- The overall cost. Not only the monthly payment. How much will you pay back in total?
- Repayment terms. How often? How long? How much?
- Type of rate. Is it a rate of interest or a rate of factor? They are distinct. Ask for a thorough explanation.
- Tariffs Are there any origination, processing or other fees?
- Cash flow implications. Can you afford to repay comfortably?
- Your true need. Do you really need the extra money?
If you have questions, ask. A excellent provider tells you in writing, and very clearly. Talk to an accountant or financial adviser for significant decisions.
Renewal Options by Product
The company advertises some financing alternatives on its site. Each may appear a little different for renewal:
- Small company loans: a fixed amount paid back over a fixed period
- Merchant cash advance: Funding related to your business’s sales and repaid over time
- Working capital: cash available for daily expenses and maintaining a continuous cash flow
Each has its own terms and charges. Ask your supplier about renewal for your product and compare the overall cost, not just the headline number.
Mistakes to Avoid in Renewal
Be careful of the following:
- Renew without a plan. Understand the purpose of money.
- Disregards whole cost. Don’t just look at the monthly payment.
- Sent incomplete sentences. Slow things down with missing pages.
- Not reading the small print. Read the offer before you sign it.
- Taking too much. Bigger is not necessarily better.
- Ignoring your cash flow. New payments have to work with your figures.
- Assuming approval or better rate. Neither can be assured.
Conclusions:
Business finance renewal is an easy way to receive additional capital when your business needs it. The process is easy. Call your provider, fill out one-page application, give 3 months of bank statements, examine offer. Filling out the forms isn’t the hard part. It is deciding whether renewal is right for you.
Don’t hurry the figures. Have a look at the overall price. Ask questions. Then you’ll have to decide.
Ready to leave? To apply visit the Belmont Franklin Group renewal site, email info@thebelmontfranklingroup.com or call 281-453-1556.
FAQs
What is a business loan renewal?
It is a way for a current client to borrow additional funds from the same lender, rather than create a new relationship.
How can I renew my business funding?
Contact your provider, fill out the one-page application, send three months of bank statements, review the offer and accept if it works.
What documents do I have to renew?
The Belmont Franklin Group requires a one-page application and 3 months of bank statements.
How quickly can I get approved?
The company page states permission can arrive in 24 hours. The timing will depend on your provider and your situation.
When I renew may I obtain more or a lower rate?
We’ll see. It states you could qualify based on sales figures and your relationship. There are no guaranties.
