TYPES OF FINANCING TRANSACTIONS WE HELP WITH
Accounts Receivable Financing
Every business has to maintain their cash flow in order to remain profitable and healthy. Small to medium-sized (and in some cases large) businesses that make or distribute products and/or provide services to other businesses in virtually every industry can benefit tremendously from A/R Financing. Any business-to-business company (meaning a business that sells products or services to another business) has accounts and invoices that do not get paid for 30, 60, 90, even 120 days. This has a tremendous effect on cash
flow as the business owner is waiting to get paid on goods or services that they already performed. Our clients receives payment immediately and is therefore able to use the cash in ways that will strengthen their business; The loan is not based on the client’s credit but rather on the business the client sells to.
Asset-Based Lines of Credit
In today’s lending environment, when it comes to lines of credit, there are a couple of ways a company can secure a line of credit. One of these could be a line of credit secured by a company’s assets, such as accounts receivables and inventory. With more and more banks pulling traditional lines of credit away from companies, this is a very sufficient way to secure a line of credit again. As
long as the assets are there to secure the line, our lenders that do these often can reestablish a revolving line of credit that was taken away from a company’s bank. This form of financing is growing rapidly as traditional banks are tightening their criteria and is always cheaper than factoring.
Bridge and Hard Money Loans
These loans consist of scenarios where a commercial property owner can’t get traditional financing and they need to act fast to either acquire a commercial property, finish construction, or cash out on their commercial property assets. A distinct advantage of this type of financing is the loan is not based on the owner’s credit but rather on his assets. Our clients will have one of the nation’s largest privately funded bridge lenders to work with. They will be able to provide $250,000 to $800,000,000 bridge loans for commercial property and raw land acquisition, development, workouts, bankruptcies, and foreclosures. Our lenders can do international loans as well.
Business Term Loans
Business term loans are one of the most common ways to finance a business for a variety of capital needs. Typically terms loans are structured in 3 to 5-year payback schedules and could be used for equipment purchases, fixes assets, or working capital needs. In recent years, it has become harder and harder for a small business to obtain term loans because of the increased scrutiny and
regulation of FDIC bank. The small business sector is not as profitable for banks compared to middle market
banking. In recent years there have been numerous private lending companies that have stepped up to fill the
void in the term loan sector with improved underwriting and the speed at which they can approve and fund
Church Real Estate Financing
Terms are very aggressive with rates at 5% fixed for a term of 5 to 7 years with a 25-year amortization with the loan being non-recourse.
Commercial Real Estate Development Financing
In today’s market, traditional banks are not willing to take on the risk typically associated with development projects, so this type of financing is in high demand. We now have a program to offer qualified developers to get their projects funded through a private investment capital source. This program is specifically designed for domestic and international real estate development projects between $1M-$150M USD (first tranche). For the developer, there are a variety of financing structures they can choose from to fit their needs, including interest-only periods, negotiable amortization schedules, balloon terms, and debt/equity options.
Commercial Real Estate Financing
The majority of business owners need to finance or refinance the real estate that their business is located in or simply need financing for an investment income generating property. Such properties could include: multifamily, retail, office, self-storage, mixed-use, hotel, motel, warehouse, mobile home parks and many more…We are able to offer our clients many different structures/terms and unique characteristics that many traditional banks can’t and don’t offer. One of the sources offers a 100% LTV product which is very unique within the marketplace. The lenders we have connections are able to offer a diverse mix of commercial real estate loans to meet the individual borrowing needs and investment objectives of its borrowers, for both investment and owner-occupied commercial properties.
Consumer Financing Program
We have the unique ability to offer literally any type of business financing programs and options for our clients. This applies to almost any business that sells a service or item that costs $10,000 or less to consumers. Our lender that specializes in this type of financing can finance any consumer with credit scores as low as a 620 fico score. This allows the business to ultimately sell more goods and services to customers that don’t have the cash to purchase whatever the business is selling. Typical businesses we cater to: jewelry stores, tuition fees, seminars, travel agencies, tax agencies, gym memberships, furniture, security systems, weight loss programs, medical procedures, buyers, clubs and many more.
Distressed Note Acquisitions
With more and more commercial properties becoming distressed and defaults on the rise, there are investors that see the value in buying up distressed notes on commercial properties for pennies on the dollar. There is also a current trend where banks are “calling” notes to properties in their portfolio as they don’t wish to refinance the property or just simply want out of the loan to recapture their investment. In most cases the bank is willing to “discount” the note to the current owner or investor that wishes to “take out” the bank. Because of these factors, investors need financing for these note
acquisitions plus the rehab or renovation capital to turn the property around.
Cannabis business loans are a lot like other loans: You can use them to cover almost any cost related to your business as long as it’s legal in your state.
Energy & Commodity Finance
Some of our lenders specializes in this arena. This is a means of us connecting any company that is related to oil and gas exploration, solar, wind, commodities such as electricity or natural gas or oil and natural gas leases. We are able to use assets such as contracts, leases, or the oil and gas reserves to leverage a company’s position to obtain capital.
Equipment leasing is the number one means of financing equipment in America today. Leasing is a $400 billion industry. Businesses of all kinds lease equipment to conserve their available cash. When capital is conserved by leasing equipment, it can be used for other
company needs (increasing inventories, expanding sales, etc.). A lease is not a loan. Borrowing reduces lines of credit. Leasing is thus a NEW credit source, which allows our clients to have an increased borrowing capacity. Many of our lenders will offer 100% financing, no down payment, and a wide range of approvals for A, B, C and D type credits with approvals in less than 24 hours.
Most franchises may only have one or two banks that they work with and those banks have a very strict, limited lending program. A lot of banks are not comfortable with franchises because they don’t understand them. We have lenders that have a specific program specially designed to finance franchises.
Inventory financing is a bank line of credit secured by the company’s inventory. This type of financing can help to free up some of the cash a business may have tied up in inventory for more pressing needs. There are numerous scenarios that would make this financing instrument a viable option for businesses. For instance, a business may enjoy a high inventory turnover rate but is short of the cash needed to replenish its supply, or a business has a warehouse of goods ready to ship, but is short of cash to buy supplies for the next production cycle. Also, inventory financing is great for businesses who maintain high levels of inventory which ties up most of that business cash. Traditional banks do not offer this type of financing which makes our company unique to readily in offering this creative form of financing to businesses.
Large Project Financing
This is one type of financing that we offer both nationally and internationally. Instead of using banks, our clients turn to us for private investment money to fund their projects. Projects could consist of a development project, venture capital for a new idea, gas and mining exploration financing, equity financing, mezzanine financing and many more. These deals usually range from $5,000,000 to $500,000,000 or more.
Medical Loans for Doctors, Dentists, Veterinarians
We are able to provide financing to professionals such as physicians, surgeons, dentists, veterinarians, and chiropractors. From medical practice acquisitions, partner buy-ins, equipment financing to specialized working capital loans, we are able to provide any type of financing to any medical professional.
Medical Receivables Financing
We are able to offer specialty financial solutions serving the healthcare industry. Medical professionals alike all have accounts receivables that are collected either 30, 60, 90, or 120 days. Our customized program allows us to offer immediate cash to medical professionals and medical-oriented businesses by converting receivables into liquid funds. Our program is an excellent solution for cash flow issues, growth capital, acquisitions, urgent financial needs, or reorganizations. Our typical clients include, but are not limited to: physicians, group practices, durable medical equipment companies, skilled nursing facilities, MRI centers, surgery centers, hospitals, home infusion providers, and EMS companies.
Merchant Cash Advance
This is one type of financing is very valuable for businesses that accept credit cards. We give businesses a convenient way to obtain working capital to use however the business sees fit.
Mezzanine loans play a very important part in the investment real estate arena. It is typically used to facilitate the acquisition, repositioning or development of real estate projects. More in depth, it could be used for owner recapitalizations and partner buyouts, tenant improvements & capital expenditure, discounted debt note acquisitions, debt paydowns to existing lenders to encourage extensions, first mortgage refinancing shortfalls or acquisitions for core, core-plus, value-added opportunities. It is simply a hybrid of debt and equity financing that is typically used to finance the expansion of existing companies. Mezzanine financing is basically debt capital that gives the lender the rights to convert to an ownership or equity interest in the company if the loan is not paid back in time and in full. It is generally subordinated to debt provided by senior lenders such as banks.
Purchase Order Financing
Purchase order financing is an excellent method for a business to obtain quick capital. It is a great solution for when cash flow reserves are low. The problem happens with many businesses because the suppliers want you to pay upfront with a C.O.D., but a company’s customers want to pay you on net 30 or net 60 day terms. Cash flow is a common problem for manufacturing companies especially because while goods are in transit, invoices are not paid. Purchase order financing frees up a company’s cash for critical business expenses or to fulfill larger orders. Another benefit is that it does not show up as debt for the owner’s business. This makes it possible to not only use extra cash to get discounts on purchases, but it also allows a business to get approved for more financing.
With over 29 million small businesses in the Unites States, SBA financing is the number one outlet to finance small businesses in America. It is a very convenient way for the average small business owner to obtain financing. Whether it’s for acquiring equipment, buying a building, starting a new business, buying a business, or refinancing a business, we have one of the most competitive SBA lending platform around. We approve our clients with only preferred national SBA lenders that have been selected by the SBA to expedite approvals and funding for small business owners. We are able to cut through the red tape and accelerate our clients’ approval process by weeks with advantages of longer terms and lower
rates. What does this mean to our clients’? They get a competitive advantage over local banks!
Unsecured Business Lines of Credit
We offer business owners unsecured lines of credit. This is offered to both start-up and existing business in all 50 U.S. states. These lines of credit can be funded in as little as 5 to 30 business days with any type of business in any industry.