Now that you’ve applied for a line of credit through The Credit Junction and gone through the underwriting process, the next step is to wait for your loan deal to arrive. (This usually happens within 24 hours of that initial call with the underwriter we mentioned in the last article.)
Once you sign the deal, you’ve essentially given The Credit Junction a green light to conduct further due diligence into your company and management team. You’re also one step closer to getting your new line of credit.
To give you a better sense of what a loan deal looks like with The Credit Junction, we’ve come up with a primer on what you can expect to see in your letter of intent. Keep in mind that, since every business and loan is unique, each loan deal will be especially tailored to your specific situation.
Let’s take a look.
The first thing you’ll see in your letter are the terms of your loan. These include:
In this part of your letter, The Credit Junction breaks down information on how it arrived at the amount of your loan and what it’ll require from you in terms of reporting. Some of the information you can expect to see here includes:
This is where The Credit Junction lists out any other conditions that could impact your line of credit. This section, for example, might include:
Although these are not unusual conditions for a large line of credit, it’s a good idea to call your advisor at The Credit Junction if you have any questions about the information in your loan letter.
Almost! Here you’ll enter in wire instructions to send your deposit to The Credit Junction. You’ll then sign the agreement.
Your funding is now nearly complete. The Credit Junction will then plan a site visit to your business (like we talked about in part 2 of this series). This will happen the very next day, generally. In the meantime, an underwriter will prepare your closing documents. As soon as the site visit is conducted, your documents will be sent to you for a final signature.
“As soon as you’ve signed the closing documents, we fund your loan—if not same day, the next day,” says Trivedi.