We arrange a wide variety of commercial mortgages for buildings and business to business loans for financing companies, including those with poor cash flow. The following is a high level overview of the types of commercial loans that our solutions offer. |
Types of Financing We Arrange
1. Commercial Real Estate Financing
2. Asset Based Loans – Revolving Line of Credit
4. Equipment Leasing
5. Purchase Order Financing
6. Merchant cash advances
7. Micro Loan Program
8. Vendor Payment Program
You can continue reading on this page to learn more about our resources. For even more more detailed information about our resources, you can refer to the left of this page for names of specific loan types that are links to related web pages.
Commercial Real Estate Financing
Our commercial real estate resources typically offer permanent financing, often times with very low interest rates. For a few property types, we also offer bridge loans, sale / lease backs, and even private equity investments. Real estate can be held for investment purposes or it can be occupied by the owner’s business. Non-recourse loans are available for larger, stronger investment properties. We also offer stated income loans for small investment properties. We consider more traditional property types as well as a few specialty property types such as senior living and hospitality.
Interest rates can be fixed to provide long term financing for terms of from 3 years to 35 years, depending on property type and program. Leverage varies by program but tops out in the range of 75% to 90% depending on loan amount, property type, and how the property is used.
Call us for low interest rates that are very competitive, ex. they can be fixed near 5% for terms of 10 years or longer for the most common property types and can approach 4% for terms of 10 years on multi-family properties. Loan amounts range from $50,000 to well over $25,000,000. Our small loan program considers borrowers with credit scores as low as 600.
Asset Based Loans
Our asset based lenders offer a revolving line of credit that is secured by B-to-B accounts receivable and, in some cases, by the borrower’s inventory. Some of our resources also offer companion loans for business that are secured by machinery and equipment, or even by owner occupied commercial real estate. We offer a range of solutions along the risk / reward curve that consider companies with minor risk to those with high risk due to factors such as poor cash flow, very high leverage, or even poor credit.
Most of the programs that we offer appeal to borrowers that more traditional lenders have declined or have non-renewed. Some of our resources consider borrowers with a history of losses, as long as a clear path to stronger cash flow can be identified. Other resources that we use consider borrowers with bad credit or poor cash flow. In some instances, proceeds from asset based lenders can be used as venture capital financing.
Loan amounts can range from $200,000 up to $60,000,000. Advance rates go up to 85% of qualified assets. Some of our resources lend against old accounts receivables dated up to 150 days. Interest rates can be as low as 4% to as high as 11% %, as of 7/12/10. Loan terms can range from 1 to 5 years, based on the particular program. Some of our resources accept medical receivables as qualified assets. Some of our resources can close quickly, in as little as 30 days, half the time that more traditional lender can take.
Some borrowers that sell to other businesses may not qualify for an asset based revolving line of credit due to: poor credit, a short time in business, weak cash flow, or even a history of losses. For these borrowers, we offer a variety of factoring programs. Factors buy accounts receivable that are B-to-B and have little, if any, concern with the financial strength of the company that is selling the receivables. Receivable factoring solutions can also be implemented quickly, in some cases in less than one week’s time.
We offer a variety of solutions using factors. Some consider traditional receivables, others fund medical receivables, and still others fund construction accounts receivable. Amounts financed can range from $15,000 up to $10,000,000 per month. Advance rates can be as high as 90%. The effective annual interest rates can range from near 15% to in excess of 30% based on: the amount financed, the type of receivables sold, and the specific program used.
While not technically a loan, commercial equipment leasing remains a viable alternative for financing the acquisition of new equipment and used equipment. Our resources provide equipment finance up to 100% of the cost of equipment. Lease terms are flexible but often range from 3 to 5 year. Amounts financing via leasing range from $5,000 to $3,000,000. The implied interest rate for leasing varies depending on the amount financed as well as on the borrower’s credit score and can range from close to the Prime Rate to well over 15% annually.
Borrowers with credit scores as low a 600 are considered. Proof of income is not required for amounts financed of less than $150,000 so for this segment of the market, our resource offers what is equivalent to a stated income loan. Leasing applications can be approved quickly, normally in the range of 1 to 5 days.
Other Types of Financing
This category includes types of financing that are not based on commercial real estate or on business to business accounts receivable. Some of these programs appeal to small businesses while others appeal to middle market companies.
Purchase Order Financing
This trade financing program is designed for importers and finances up to 80% of the cost to acquire and import merchandise into the US. A borrow needs to have a purchase order from a financially strong customer for the goods to be imported. The imported goods can be manufactured based on the importer’s purchase order. The imported goods should ideally be shipped directly to the borrower’s customer. Purchases to build inventory are not covered by this type of program.
Amounts financed can range from $20,000 up to $10,000,000. Financing fees can be in the range of 1.5% to 2.5% per month and cover the time between the lender paying the foreign supplier, or issuing a letter of credit to said supplier, and the time the customer pays the lender. This program requires that sales be free and clear.
Merchant Cash Advances
Merchant cash advance programs provide what is essentially an unsecured loan to small companies that may not qualify for a more traditional loan because they have: insufficient collateral, poor credit, and / or thin cash flow or even a history of losses. This type of program provides financing by advancing funds to a company as a multiple of their average, historical monthly credit card sales.
The merchant cash advance program funds business loans in amounts ranging from $20,000 to $3,000,000. The amount funded is limited to an advance multiple which is an average credit card receipts for the past three to six months. The advance multiple can range from 0.3 times to 3.0 times based on the borrower’s credit score, industry, and other factors. Effective interest rates for this type of financing are impacted by: the borrower’s credit score, the amount financed, and the industry in which the borrower’s company operates. Effective interest rates can be high, often ranging from approximately 15% annually up to 50% annually.
To qualify for a merchant cash advance, a borrower can have poor credit or even bad credit with a credit score as low as 500. The borrower must also own and operate a qualifying business and have annual sales of at least $300,000.
Micro Loan Program
This program is somewhat similar to a merchant cash advance program, except that this program can sometimes offer slightly more competitive interest rates and can potentially offer larger business loan amounts.
These small business loans are limited in amount to the lesser of 5 times the average daily bank balance or 2 times the average monthly credit card sales.
Borrowers need to be in business for at least one year and must be leasing their facility or own it. The lender considers borrowers with credit scores as low as 540.
Loan amounts range from $5,000 up to $100,000 for this program. Loan terms can be 6, 9, or 12 months and loans are fully amortizing. Annual interest rates are high and typically fall into the range of 30% to 40%. The lender puts a first lien on all UCC assets, but there is no minimum amount of collateral that is needed for the loan so this type of program appeals to borrowers who lack the collateral for a more traditional type of loan.
Vendor Payment Program
The Vendor Payment Program (Program) helps a Company generate working capital by paying the Company's vendors at no cost to the company. The Program pays the vendors of a Company and allows the Company to reimburse the Program up to 90 or more days later.
In essence, the Program obtains voluntary discounts from a Company's vendors for paying them early. The Program pays the discounted amount of invoices to a Company's vendors. The Company reimburses the Program for the full amount of the related vendor invoices later.
The vendor payment program is voluntary for a company’s vendors but can give them another option to obtain financing for amounts due from the company, their customer.
An entity needs to have good credit to use a Vendor Payment Program. Companies using Vendor Payment Programs normally have annual revenues of at least $5 million to $10 million and up to and over $1 billion.