SHIELDS LOAN CONSULTING
Fast, Flexible and Nationwide
SHIELDS LOAN CONSULTING Services
ASSET BASED LENDING
Asset-based lenders put a high premium on the value of your business’s assets, which they can use as collateral to secure a loan.
Application
Balance Sheets- Ex: QuickBook
Profit & Loss Statements- a year-to-date profit and loss statement (updated within the last 60 days) as well as total P&L statements for the last two years.
Sales Forecast- So, if you have a well-researched sales forecast that tracks a strong growth trajectory, that may help to tip the scales in your favor.
Business Tax Returns and Banking Statements- If you’ve been in business for a while, have your last two to three years’ worth of business tax returns on hand. Six months business bank statement at least, and 12 if your business is seasonal. For each month, remember to include all pages of the bank statements, not just the first.
BUSINESS LINE OF CREDIT
A line of credit gives you access to money “on demand”
Application
Balance Sheet
Business bank statements or personal bank statements (6-12 months)
Personal and business tax returns (2-3 Years
Profit-and-loss statements (2-3 Years)
COMMERCIAL FINANCE
The lender's or Invesor's first consideration is your ability to pay back the loan.
Application
Any existing appraisals if real estate is involved
Business financials- business bank statements and tax returns
Personal financial statement
Real estate schedule if real estate involved
COMMERCIAL REAL ESTATE FINANCING
Investment Purpose
Application
The deed of the property
Contracts for sale and purchase
Evidence of any insurances
Existing liens
Financials- Current business bank statements, business tax returns, profit & loss statement, cash flow projection and business debt schedule
Property tax receipts
Property leases and/or rental agreements
Pictures of the property
CONSTRUCTION
Specific purpose of financing a new home or other real estate project
Application
Down payment: To get a construction loan, you’ll need to make a down payment of 20% or more of the cost of the total project. This means that you will need to be prepared to start the project with your own funds or assets before a lender will agree to loan more. If you already own the land, for example, it’s likely that you will be able to use that toward the down payment amount.
The particular amount of your down payment will depend on the cost of your project, the land, and what you plan to do with the funds. Lenders require high down payments as a way of making sure you’re invested in the project and won’t vanish if things go wrong during construction.
Strong personal credit: Anytime you apply for a construction loan, you’ll need to provide the lender with your personal credit history--even if you are applying as a small business. The lender will almost definitely want to see your personal FICO score and your business credit history, too.
Financial documents: Typically, a prospective lender will analyze your current and past debt and payment history, as well as any other loans or liens you may have on your property. Whether this loan is for your own home, or for a small business construction project, you’ll be asked to provide financial statements, tax returns, and proof of other assets.
Good reputation: Whether you are the builder, or you are working with a builder, know that the lender will scrutinize the builder’s reputation. Any public information is fair game for making this judgement call: vendor and subcontractor reviews, online reviews, and previous work history.
If you are working with a builder, they should not hesitate to provide evidence of their good reputation, along with the detailed project plans and cost estimates you’ll also need. If you need help finding a qualified builder, check out one of the many National Association of Home Builders chapters closest to you. A trusted local builder with a solid history of successfully completed projects will have an easier time getting a vote of approval from a financial institution in the form of a construction loan.
Specific plans: To qualify for a construction loan, you must have specific and detailed building plans, construction contracts, and cost estimates ready.
Appraisal: It’s challenging to appraise something that does not exist yet! Of course, there are experts who do just that every day. Construction lenders work with appraisers to analyze your project when you apply for a loan. They review the specifications of your construction project and compare it with other existing constructions of similar specifications. They then draw conclusions regarding the possible worth of the construction in the future.
It is very important to get a good appraisal to improve your chances of getting a construction loan approved. You can get an independent appraisal if you want, but your lender will most likely insist on conducting their own.
EQUIPMENT FINANCING
The required documentation may vary due to the amount and circumstances of the transactions
DIRECT FINANCING LEASE
Commercial Application – Please complete all information requested
Copy of equipment quote or estimates & desired repayment terms
Outline of anticipated purchases for the next twelve (12) months
Purpose of Lease or benefit of the equipment
Interim Financial Statement (if it has been ninety (90) days since the last financial statements or tax returns)
Corporate Financial Statements or Corporate Tax Returns, for the last 3 years
Personal Financial Statement of Principal(s)
OFF BALANCE SHEET LEASES
Commercial Application – Please complete all information requested
Copy of the equipment quote or estimates and the desired repayment terms
Interim Financial Statement (if it has been ninety (90) days since the last financial statements or tax returns)
Corporate Financial Statements or Corporate Tax Returns, for the last 3 years
Personal Financial Statement of Principal(s)
Personal Tax Returns of Principal(s), for the last 3 years
Purpose of Lease or benefit of the equipment
Personal Tax Returns of Principal(s), for the last 3 years
SALE LEASEBACK
Commercial Application – Please complete all information requested
How much do you need to finance & what repayment terms are desirable?
Detailed information of the item leased including date of purchase and original invoice
Purpose of Lease or benefit of the equipment
Interim Financial Statement (if it has been ninety (90) days since the last financial statements or tax returns)
Corporate Financial Statements or Corporate Tax Returns, for the last 3 years
Personal Financial Statement of Principal(s)
Personal Tax Returns of Principal(s), for the last 3 years
HARD MONEY
Up to 90% LTV
Application
Purchase contract
Recent bank statement (6-12 month
Proof of closing funds available
Operating agreement
Property financials
INVENTORY FINANCING
Asset Backed
Complete the attached (also available to send via DocuSign if preferred) one-page application showing at least 51% ownership
Provide business bank statements in PDF format
Company Debt Schedule (see attached) if applicable
Most recent three years of business tax returns and YTD financials
Current Aging A/R and A/P Reports
INVOICE FACTORING
The company that needs funding sells outstanding invoices to invoice finance provider
Application
Accounts Receivables / Payable Aging Report- This report details of your current and most recent invoices (usually going back 90-days)
Articles of Organization or Incorporation
MCA
Real estate backed or uncollatoral
Application
6-12 Months Business Bank Statements
Debt Schedule if the client has other loan
RE Schedule if real estate is involved
Current property tax bill if real estate is involved
PERSONAL FUNDING
Business Credit Card, Personal Term Loan; Personal Cash Line of Credit ; Personal Credit Card
CLIENT MUST MAKE 40K ANNUAL INCOME
1. First, the client will need to fill out the soft credit pull link. The link will not hurt the client's credit it is a soft credit pull.
2. Once the client is pre-approved they will have an intro call with me. On that call, they will get an application and the checklist of documents we will need.
Proof of income- all documents must be present for proof of income:
Last 2 years W2'S
MOST recent paycheck stub (last 30 days
Last 2 years of most recent personal taxes (if an extension is filed, then the extension must also be included)
If self-employed we will need 2 years personal tax returns
Color Driver License, front and back
3. Social Security Card, front
4. Utility bill (Proof of residence) (must be current and be in applicant name (one for each if joint app)
5. Voided personal check
If self-employed, include business tax documentation of any additional income.
Example: Second job W2, rental property, etc.
Once the documents are received we will have a compliance call with the client. 24 hours after the call the clients will receive soft pull offers that will show the interest rate (5%-20%) the term (3,5,7 years) the payment will also be presented. These are soft offers. Once the client decides on the offers they want an inquiry will be put on the credit report. Only for the loans selected.
Once the loan is in the client's possession we will invoice the client.
PURCHASE ORDER FINANCING
Advances up to 100%
Borrower receives a purchase order: The borrower receives a large purchase order from a customer.
Borrower receives a written cost proposal: The borrower gets a written proposal from its supplier on what it would cost to purchase the goods necessary to fulfill the customer’s order. At this point, the borrower can determine with certainty if financing is necessary.
Borrower applies and gets approved for purchase order financing: The borrower finds the right financing company, applies for the necessary funding, and gets approved. To apply, the borrower needs to provide both the customer’s purchase order and the supplier’s cost proposal.
Financing company pays the supplier: Once the borrower is approved, the purchase order financing company pays the supplier to manufacture and deliver the goods needed to fulfill the purchase order. Payment is usually in the form of a letter of credit.
Supplier delivers the goods to the customer: The supplier usually delivers the goods to the customer directly. However, the borrower may instead choose to have the goods delivered to its business location. Once the customer receives the goods the order is considered accepted.
Borrower extends terms to the customer: The borrower invoices the customer for the goods and extends terms to the customer. The longer it takes to receive payment from the customer, the more expensive the financing becomes.
Customer pays the financing company: The customer pays the PO financing company directly for the full price on the borrower’s invoice.
Purchase order financing company pays the borrower after deducting fees: The PO financing company deducts its fees from the funds and then pays the remaining balance to the borrower.
REVENUE BASED LENDING
Unrestricted Capital for Growth
Completed application
Last 6 months of business bank statements
Aging ar/ap
Current financials
Last year financials
Projections
SBA LENDING
Bank Rates
Subject Business Tax Return 3-year
Personal Tax Return 3-years
Application
TERM LOANS
Good credit required
Application
Business tax returns
Debt Schedule
Financial statements
Personal tax returns
Personal financial statement