Business Term Loans
Business term loans are a common way to finance a business for a variety of capital needs. Terms loans are structured in 3 to 5-year payback schedules and could be used for equipment purchases, fixed assets, or working capital needs.
Recently, it has become harder for small businesses to obtain term loans because of the increased scrutiny and regulation of FDIC banks. The small business sector is not as profitable for banks. There have been numerous private lending companies that have stepped up to fill the void.
CMBS Commercial Real Estate Loans
In today’s commercial real estate market there are several options to finance properties with one of them being a CMBS (Commercial Mortgage Backed Securities) loan. It’s a mortgage-backed security backed by commercial properties that are “securitized” into a pool and then transferred to a trust. These are sold to investors. These are issued by Wall Street investment banks like Goldman Sachs etc. This provides the borrower a very low-interest rate, non-recourse debt, with a fixed term up to 10 years with 30-year amortizations. There are only a few investment banks offering these since the crash of 2008.
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 can get developers projects funded through a private investment.
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, it could be used for owner recapitalizations and partner buyouts, tenant improvements & capital expenditure, discounted debt note acquisitions, debt paydown 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.