Tips for Faster, Smoother Bank Takeouts

Typically, Celtic Capital can take out a bank deal in as little as thirty days; assuming we have the bank’s cooperation and timely borrower responses to our requests. The process begins at the time of referral with the bank instilling in the borrower that there is a clear exit deadline.

Once the borrower signs our Proposal, a few additional forms need to be completed, followed by the due diligence process and possibly an appraisal. Some borrowers help expedite the process; while others require more prodding to move the process along which is why the more pressure the bank puts on the exit deadline, the smoother and faster things tend to go.

When a borrower delays, banks often offer extensions. From our experience, one extension usually leads to more and if the company’s financial situation further deteriorates during that time, it becomes much harder to complete the exit – sometimes making full repayment to the bank impossible.

Successful bank takeouts really come down to managing the flow of information. For the bank, it’s all about setting clear expectations for a realistic exit timeline; for the borrower, it’s about providing timely responses to requests. The bank plays a key role in keeping the process on track by prioritizing and reinforcing deadlines to ensure everything moves smoothly.

About Celtic Capital
Companies looking for working capital to cover operating expenses, fund growth, increase buying power, and take advantage of vendor discounts and rebates turn to Celtic Capital. With an appetite for more complex transactions, Celtic Capital has a history of success in crafting creative, flexible asset-based financing solutions from $500,000 to $8 million with no financial covenants.

As an independent lender, working with companies nationwide, Celtic Capital is willing and able to alter price and deal structure and expand lines of credit to handle its clients’ increased revenues; and when cash flow is an issue, will look toward providing an inventory facility to help offset lost cash flow.

If you know of, or are, a business in need of non-traditional financing, contact Mark Hafner at 800.742.0733 or mhafner@celticcapital.com, or visit us at www.celticcapital.com.