The fastest term sheets we issue go to borrowers who sent a complete package on day one. The slowest go to borrowers who sent a one-line email and a hope. The difference is a few hours of preparation.
The package
- A one-page summary: the business, the amount, the purpose, the collateral and the exit
- Financial statements for the last two fiscal years, accountant-prepared where available
- Year-to-date internal statements, no more than sixty days old
- Aged receivables and payables listings
- A debt schedule: every loan, lease and line, with lender, balance, rate and security
- Collateral support: appraisals, rent rolls, equipment lists with serial numbers
- Corporate documents: certificate of incorporation, shareholder list, organizational chart
- CRA status: confirmation that filings are current, or a statement of account if they are not
- Personal net worth statement for each guarantor
What it signals
A complete package tells a lender that the owner knows the business and will be easy to work with for the life of the loan. It also lets the lender spot problems early, which is better for both sides. We will issue initial feedback within two business days of a package like this, and a term sheet within five.
What to leave out
Fifty-page business plans, five-year hockey-stick projections and marketing decks. We will ask for projections if we need them. Send the facts first.
Have a situation like this? Tell us about the deal and a principal will respond within two business days. Cascade lends to businesses only, in Canadian dollars, and every rate we quote is an annual rate.
