How to Keep Capchase CreditCap Available
Capchase monitors a company’s performance and may adjust available credit accordingly. Capchase does not guarantee credit availability, which is subject to a number of factors including the customer continuing to make payments in a timely manner and meet credit requirements. Companies will lose the ability to draw on their CreditCap if they do not submit data sufficient for Capchase to perform the scheduled payment reviews (see How frequent are my credit reviews?). Between underwritings, Capchase will monitor key metrics such as runway to ensure the business is performing in line with expectations.
Here are some tips on how to keep your CreditCap available for the long term
Monitor your Burn Rate
One of the most important factors in keeping your CreditCap available is managing your burn rate. This refers to the rate at which your company is spending money. If your burn rate is too high, it can quickly deplete your cash reserves and make it difficult to maintain runway which is a requirement to keeping your CreditCap open. To avoid this, it's important to closely monitor your expenses and make sure you're not overspending. This can involve cutting unnecessary expenses, negotiating better deals with suppliers, or finding ways to increase revenue.
Maintain Accurate Financial Records
Another key factor in keeping your CreditCap available is maintaining accurate financial records. This includes keeping track of your income, expenses, and cash flow. By keeping up-to-date financial records, you'll be able to quickly identify any issues that could impact your CreditCap. For example, if your cash flow is tight, you may need to adjust your spending or find ways to increase revenue to avoid running out of cash.
The best way to do this is to maintain banking, accounting, and subscription connections in the Capchase platform. You can learn more about data connections here. Note that for your CreditCap to be evaluated, you need your data to be underwritten. You can request a new underwriting directly on the Credit Review dashboard.
Keep Open Communications with Capchase
Finally, it's important to communicate with Capchase regularly. This includes providing your Growth Advisor with regular updates on your financial performance and any changes in your business. By keeping them informed, we'll be better able to work with you to maintain your CreditCap. If you're experiencing any challenges that could impact your ability to repay your CreditCap, it's important to let us know as soon as possible. We may be able to offer solutions or work with you to design a plan to navigate a period of uncertainty.
If you have any questions, don’t hesitate to send us a message at support@capchase.com