The timeline from initial referral to KR Strategic to funding of proceeds can vary from deal to deal.  On the short end of the spectrum, receivables and inventory factoring can sometimes be closed in under a week if the borrower has the necessary documents available for lender review.  More complex, bespoke deals could be subject to lengthier underwriting processes.  Let’s discuss early in our conversations what your timing requirements are so we can properly ensure we connect you with the right financial institutions that are best suited to working within those parameters.

 

All our transactions follow the general flow chart below:

 

1. Prospective borrower financing need is directly sourced by KR Strategic or obtained via a referral relationship.

2. Initial call between KR Strategic and borrower to gauge financing needs, timeline, background on business and financial profile.

3. Non-exclusive Memorandum of Understanding (“MOU”) and mutual Non-Disclosure Agreements (“NDAs”) are signed between KR Strategic and borrower.

4. KR Strategic conducts preliminary diligence on borrower and prepares “teaser deck” and marketing proposal.

5. Borrower and KR Strategic discuss the teaser deck and marketing proposal, comments are incorporated into subsequent drafts and a list of excluded financial institutions is provided by borrower.

6. KR Strategic begins marketing outreach to prospective financing partners (all subject to back-to-back NDAs) with regular updates provided to the borrower.

7. KR Strategic collates and presents summary of offered financing terms for consideration by the borrower.

8. If a financing offer warrants further consideration by the borrower, KR Strategic facilitates discussions and negotiations between the borrower and financing partner.

9. Term sheet is finalized between the borrower and financing partner.

10. KR Strategic facilitates data room creation and coordinates distribution of confirmatory diligence documents requested by the financing partner.

11. Definitive deal documentation is finalized between respective borrower and financing partner attorneys; KR Strategic remains available as needed to assist with any discussions or clarifications between parties.

12. Deal documents are signed and a closing date is set.  Transaction is funded on the closing date.