Construction loans – We represent several lenders who provide construction financing on projects both domestic and international in some cases.  Sometimes this will be straight debt (a loan) or sometimes it may need to involve a combination of debt and equity.

Acquisition financing – Two questions impact the decision to provide an acquisition loan: 1) What is the purchase price? and 2) How much capital is the buyer willing to contribute to the transaction?  Generally, the buyer will need to put a minimum of 10% into the purchase price and often more. 

Bridge loans – These must be secured by collateral.  Bridge loans to be taken out by a pending equity transaction do not work simply because the pending transaction may not ultimately happen in which case the bridge lender loses. 

Borrowers with no collateral – Without collateral to secure a loan one alternative would be to use the historical profitability of the company to provide an unsecured cash flow loan.

Example:    Cash flow loans typically start at around $1,000,000 up to well over $100,000,000.  Generally the borrowing company must be in business for a minimum of three years with good revenue and net income numbers confirmed by audited or reviewed financial statements. 

Example:    Another possibility might be a company seeking financing to acquire equipment or real estate where we could provide an SBA guaranteed loan of up to 90% of the purchase price, subject to the credit worthiness of the company and/or the principal of the company.

Equipment Leasing- We can provide equipment for the operation of a business through our ability to arrange market competitive equipment leasing. Frequently this can be the most optimal method for a business to expand their production, warehousing and transportation needs.

2)       What constitutes collateral that can be used for a secured loan?

There are four main type of preferred collateral:

• Accounts receivable of various kinds
• Equipment
• Inventory
• Real estate

In some cases intangible assets like proprietary technology, trademarks, patents, trade names etc. can be used but typically only if the borrower can get a ‘put’ which is a letter of guarantee that some outside entity will buy this ‘collateral’ in the event of a loan default.