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ERC FINANING- Do You Need a Second Opinion?

  • Always good to get a “second opinion” when making major decisions from business associates, accountants, attorneys, business advisors, friends, family, crystal balls, or even fortune cookies
  • Don’t get me wrong. I actually LOVE Chinese food, but never rely on fortune cookies for advice when making business decisions.
  • “Second opinions” typically enable us to see things from a different perspective, help us in better understanding the facts, or provide another approach in identifying and evaluating our options.
  • So when it comes to ERC financing; whether you’d made a decision to apply or not, whether you’ve received a funding proposal or approval from an ERC lender or not; there’s 3 things you want to look at BEFORE making a decision:
  1. Likelihood of approval
  2. rate and terms, and
  3. Timing.


  • Bottom line- if you’re NOT approved, nothing else matters RIGHT?
  • First thing you need to know is what is the lenders approval criteria, including what are their DEAL KILLERS? By the way, be sure and checkout our video entitled TOP 10 DEAL BREAKERS WHEN FILING FOR AN ADVANCE AGAINST YOUR ERC REFUND CLAIM.
  • Make a list of any items or issues you feel could potentially impact your approval.
  • Finally, “take a look in the mirror” to make your own objective assessment of where you stand in relation to the lender’s approval criteria. Getting a “second opinion” here might not be a bad idea either.


  • The second thing to consider in making a “second opinion” is understanding not only the RATE but HOW TO convert it into dollars and cents. In other words- what is the financing Costing me in real money? CASH?
  • While some lenders will tell you rate is a function of underwriting, they should be able to provide a range of rates between best case (low rate) and worst case (high rate). If you can live with the WORSE CASE, you might be good to go!
  • Whether the fee is a monthly interest rate, or flat rate lump sum discount based on your ERC refund amount, convert it into dollars and cents so you can know upfront what its’ costing you.
  • Finally, be sure and include all additional fees, ie closing costs, origination fees, etc, to get an idea of your ALL IN costs and how much you might be walking away from the table with at closing.


  • The FIRST question to ask on timing is “WHEN does the clock start?”, and secondly, “How long does it take to get through underwriting, due diligence, approval, closing, and funding?”
  • Knowing WHEN the clock starts is important because the clock starts with lenders when ALL of the required documents have been submitted, and NOT when the original app package was submitted.
  • Every lender will give you their own “TARGET TIMING” which can range from 5 to 7 days, to 2-3 weeks, to up to 30 days or less.
  • HOWEVER- here’s an important factor that could impact TIMING you need to be aware of, if it wasn’t on the Approval Criteria list from your ERC lender. UCC Filings. UCC filings from banks, equipment lenders, factoring companies, MCA lenders, or any other asset-based lender with a blanket UCC filing.
  • So here’s the deal- (1) once you know the position of your ERC lender on UCC fillings, and (2) whether or not you have any blanket UCC filings, that will determine whether its’ an issue that needs to be resolved or not. And if it IS an issue, finding out AFTER the fact will-without question, impact your timeline for final approval and funding.
  • We deal with UCC issues like these with our clients on almost a daily basis, so be on the look-out for an upcoming video on strategies and options for dealing with them.

So what’s the “bottom line” on getting a “second opinion?”  If you’re thinking about applying for ERC financing or even have already started the process, getting a  “second opinion” on where you stand TODAY, can potentially save you time LATER.

At a MINIMUM you’ll have a better idea UPFRONT on the potential issues that must be resolved, so you can identify strategies and options for addressing them.

Hope that helps guys!

By the way, if you’d like to schedule a no-cost, Second Opinion Consultation Session, just click on the link below to schedule a time. I look forward to visiting with you!

Call Us Today!