Commercial Finance

Commercial Loans

We do Commercial Financing with an understanding of accounting and banking, the various types of alternative lending methods, and knowledge of different business fields in order to better understand clients’ needs and match client with right type of Financing by being a liaison between all parties involved, analyzing financial statements, negotiating deals, and steering conversations toward lucrative agreements and Merging (businesses, investors, and lenders) together to a point where everyone shaking hands over a loan agreement. .

Our approach to commercial lending is simple if the deal makes sense we’ll get it done. We don’t confuse our clients with banker lingo that means nothing; we make sure our borrowers are up to date with their application at all times that they understand the process from start to finish. If you are looking to fund your next project, contact us for a speedy service and closing of your commercial loan.

We offer expert funding for hotel/motel, office, gas stations, industrial or retail property loans. Our service oriented commercial mortgage brokers give you the underwriting expertise required by today’s tougher lending standards. Whether you are a seasoned investor or new to the market, we’re here to help you explore your best options for commercial financing.

Commercial Financing Options:

A Non-Recourse loan is a type of loan that is secured by collateral, which is usually the property. The borrowers don’t have to provide a personal guarantee for this type of loan. Hence, if the borrower defaults, the issuer can seize the collateral, but cannot seek out the borrower for any further compensation, even if collateral does not cover the full value of the defaulted amount. In other words, borrowers do not have personal liability for the loan.

These types of loans are used for two purposes:

  • Refinance the existing debts of a property
  • Purchase of a property

Mortgages or commercial loans are loans that are not guaranteed or insured by government agencies and only by the banks are known as conventional loans. These loans are held by the banks and financial institutions on their own books and are called portfolio loans. Lenders set their own guidelines and do not sell to other investors. These loans may have features that other types of loans may not have.

These types of loans are used for three purposes:

  • Refinance the existing debts of a property
  • Purchase of a property
  • Construction to permanent financing
  1. Recourse with burn off potential
    • 80% of cost
    • Up to 75% of value
    • 2.25 to 2.75 basis points spread over LIBOR
    • 3 to 5 years floating or fixed options available at stabilization
    • $10 to $40 Million
  2. Non-Recourse with Completion Guaranty
    • Experienced sponsors with similar projects
    • Up to 85% loan to cost
    • $40 million minimum
    • up to $150 million
    • 3 to 5 years
  3. Bank construction loan with take out at certificate of occupancy
    • Recourse
    • Up to 75% loan to cost
    • 225 to 400 basis points floating over 30-day LIBOR
    • 12 to 18-month term or at certificate of occupancy
    • $3 to $15 Million

The funds originate from private investors who are looking to make hard money loans seeking a return on their capital.  The source could range from:

  1. one individual,
  2. a group where each investor fractionally invests in your hard money real estate loan, or
  3. a group of private investors who have already pooled their funds and work with a commercial lending asset manager or loan broker to issue loans to qualified borrowers.

Up to 100% of the cost for the acquisition of FF&E for the development of new hotel properties or the refurbishment or conversion of existing properties to include soft cost and construction related items.

Personal and/or corporate guarantees as applicable

3 – 10 years based on useful life of the equipment (typically 5-7 years). Interest only period of up to 18 months available based on cash flow and stabilization needs.

  • Non-recourse
  • Up to 75% loan to cost
  • Plus up to 100% renovation costs
  • Up to 3 years to stabilize
  • 10 Million minimum
  • Floating rate

SBA 7(a) loan program’s objective is to help start-up and existing small businesses with financing guaranteed for a variety of general business purposes. SBA does not make loan itself, but rather guarantees (up to 85%) loans made by participating lending institutions. In this way, taxpayer’s funds are used only in the event of borrower default. This reduces risk to the lender but not to the borrower, who remains obligated for the full debt, even in the case of default.

SBA 504 Loan program is also known as the Certified Development Company (CDC) program. The 504 program’s aim is to promote the development of businesses. It works by distributing the loan among three parties. The business owner puts a minimum of 10%, a conventional lender puts up 50% and the CDC puts up the remaining 40%. CDCs are entities established under the 504 program as non-profit corporations to support economic growth in the local areas.

The maximum amount of loan is $5 million and $5.5 million for manufacturers and energy projects. If the borrower defaults, the private sector lender is paid off first, reducing the risk to the lender and encouraging loans.

These types of loans are used for three purposes:

  • Refinance the existing debts of a property
  • Purchase of a property
  • Construction to permanent financing

USDA loans have been designed to improve the economy and quality of life in rural America. These types of loans are made out to businesses in areas where the total population is less than 10,000. USDA does not make out the loan itself but guarantees (up to 80%) loans made by participating lenders. You can use this link to see if your property qualifies for USDA loans: http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

USDA loans are used for three purposes:

  • Refinance the existing debts of a property
  • Purchase of a property
  • Construction to permanent financing

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