ENGAGEMENT
ENGAGEMENT
The above mentioned company and its owner(s), desire to engage Business First Consulting, Inc. (BusinessFIRST) its owners, employees, and representatives, ("we," "us" and "our") located at 651 N Broad Street Suite 205 Middletown DE, 19709, to advise and assist with securing a loan for commercial purposes only. We are not mortgage brokers and do not charge broker fees for residential lending. As consultants, we will work to eliminate unresolved issues so that the company can secure bank-type financing, for supplies and materials, fuel, equipment loans, advances, or company leases.
PARTICIPATON
BUSINESS PARTICIPATION
As the business and business owner, you agree to participate in this process by providing us with the documents, company information, UCC filings, liens, lawsuits, or communications between creditors to aid in facilitating settlement, negotiations, and funding. Our system pricing is based on our working together, and the more time that passes from each request may cause additional documentation, increasing the workload on both sides of this agreement.
DESCRIPTION OF SERVICES
DESCRIPTION OF SERVICES
We are acting as your consultant, by providing you with our services described within this document, and as such, owe you a fiduciary duty, honesty, and loyalty in the transaction, including full disclosure of all material facts. We do not provide legal or tax advice. We will continue to provide these services until you and/or we mutually agree to terminate our services. During the process(s) outlined above, confidential information about the related project, Business First its owners, and its employees agree to and understand this information is intended solely for the use of authorized parties involved in the project and must not be disclosed, distributed, or shared without the express written consent of the project's management. Unauthorized dissemination of this information is strictly prohibited and may result in legal action. Recipients of this document are required to maintain the utmost confidentiality and protect the sensitive details contained within. This obligation extends beyond the duration of the project. By accessing this document, recipients agree to abide by these terms and conditions of confidentiality.
SCOPE OF WORK
SCOPE OF WORK
Review, Analysis, & Task List for both Business & Personal Credit:This step involves assessing the credit history and creditworthiness of both the business and its owners. Since banks require good personal and business credit scores, this review helps identify any issues that might impede loan approval, allowing for corrective measures to be taken in advance. In addition, we take steps on your behalf to improve credit, add tradelines for personal and business use, review credit reports, and develop an action plan for both parties to follow.
Guidance and Support for all aspects of the process, including introduction to the lender(s): Providing comprehensive support throughout the loan application process is essential. This includes explaining the requirements, preparing for steps ahead, and introducing borrowers to potential lenders. This guidance can significantly enhance the applicant's understanding and readiness for the process.
Review of Business Compliance issues and address each area needing work: Ensuring that the business complies with all relevant local, state, and federal regulations is critical for loan approval. This step involves identifying any compliance gaps and working towards rectifying them before the loan application is submitted. These compliance issues can affect business credit scores as well, so incorporating this into the process removes the risk of surprises that may extend closing dates.
Examination of relevant financial statements: This review ensures they are complete or we will oversee their finalization as required. Financial documents are a key part of the SBA loan application. This step ensures that all financial documentation accurately reflects the business's financial health and is in order, or assists in getting these documents properly prepared if they're not yet ready.
Writing a concise abbreviated business plan: This process entails drafting a streamlined yet thorough business plan that not only details your company's structure and the strategic use of loan funds in alignment with bank guidelines but also includes a precise debt schedule to showcase the implications of new loan commitments and a loan payment forecast. Such a plan is pivotal for illustrating to potential lenders the practical application of the loan and its anticipated influence on your business's fiscal trajectory, including a clear repayment strategy.
Creating this plan demonstrates your thorough preparation, showing lenders that you are fully aware of upcoming challenges and have devised concrete plans to navigate them. It signals risk mitigation by indicating that potential risks have been identified and contingency strategies are in place.
Common pitfalls, like overly optimistic financial forecasts or neglecting competitive analysis, may impair your loan application's success.
Completion of all forms and documents for client signature prior to loan submission: This step involves preparing and organizing all required documentation for the loan application, ensuring that everything is ready for the client's review and signature. This thorough preparation can streamline the submission process and prevent delays.
Loan submission and Closing: The final step is the actual submission of the loan application to the chosen lender(s) and managing the closing process. This includes coordinating with the lender, addressing any last-minute issues, and ensuring that all parties are prepared for closing.
FEE STRUCTURE
EACH OF THE UNDERSIGNED ACKNOWLEDGES THAT THEY HAVE RECEIVED AND READ A COPY OF THIS CONSULTING AGREEMENT AND UNDERSTANDS ITS CONTENTS.