Instant Access To Vast Array Of Lending Sources!
By having access to TLC’s vast array of lending sources, you can match or beat the interest rates and loan terms of many banks. We have access to numerous local and national funding sources and we monitor them constantly for the best interest rates available…
Sale-leaseback transactions allow businesses to use their equipment to raise capital while retaining possession of their business equipment. This is done by selling some, or all of their business equipment that is owned free and clear, to a leasing company. The business receives cash for the asset sale and then signs a lease agreement for that same asset so the business (lessee) can continue to use it. At the end of the lease contract, ownership of the asset is transferred back to the lessee. This type of financing presents a broker with a working capital solution for businesses that paid cash for equipment in the past, but now find themselves in a cash crunch. BFC’s can earn 2-15 points on this type of transaction. More Info.
Asset Based Loan (ABL)
An asset based loan (ABL) is a generic term that describes a type of business financing that is secured by company assets. These loans are usually offered by non-bank lenders that will not require the borrower to have strong credit as part of their loan decision. ABL companies make loans based primarily, or entirely, on the value of the business’ assets. This is a valuable option for a BFC to offer companies where the business, or business owners, have less than perfect credit. BFC’s can earn up to 10 points on asset based transactions. More Info.
Commercial Property Loan
A Commercial Property loan is a debt secured by real estate that is usually not zoned for residential use. The property is used solely for business purposes (i.e., restaurants) or a combination of residential and commercial use such as a high rise apartment building with retail stores on the ground floor (mixed-use). Commercial buildings can be owner occupied, single tenant or multi-tenant and come in many varieties such as retail centers, parking structures, office complexes, hotels and apartment buildings with 5 or more units. BFC’s can make 1-5 points or more arranging financing on this type of transaction. More Info.
Accounts Receivable Financing
Accounts Receivable Financing allows a business owner to accelerate cash flow by borrowing against their open invoices. The lender secures the debt by placing a lien against the business’ A/R as well as other business assets. In return the business owner receives cash in advance of payments due from their customers. BFC’s can make 1 point or more on the amount financed plus additional fees from the borrower. More Info.
This type of small business financing is characterized by shorter payment terms (up to 24 months). The money that is borrowed can be used for a wide variety of business expenses and is normally repaid through small payments subtracted from the business bank accounts each day. This is often easier for the business owner to manage compared to the larger monthly payments and longer payment terms associated with traditional bank loans. Merchant finance companies can vary greatly in their qualifying criteria. Some look for stronger, more established businesses, while others will work with companies as new as a few months in business. BFC’s usually make 1 to 10 points on this type transaction. More Info.
A generic term used to describe a type of loan where 100% of the loan proceeds are to be used for business or commercial purposes. Business loans can be used for many purposes including start-up financing, expansion or to buy an existing business. These loans are usually secured through a combination of business and personal assets, but can also be unsecured depending on the loan amount and business credit. The repayment terms are usually 1-5 years or more based on the businesses cash flow and profitability. BFC’s usually make 1-5 points when arranging this type of transaction. More Info.
An Equipment Lease is a long-term rental agreement for commercial equipment as defined by Section 38 of IRS code. Leases can be structured on almost any type of equipment, both new and used. Because the initial out of pocket cost to lease equipment is normally much less than buying it, this is an extremely attractive financing option for many business owners. Depending on how the lease is structured, the business owner (lessee) will have the ability to purchase the equipment at the end of the lease term, or return the equipment. BFC’s can make up 1 to 15 points by arranging lease transactions. More Info.
Purchase Order Financing
“PO” financing is a non-credit sensitive form of financing that is normally used in the manufacturing sector when a business has insufficient cash on hand to fill their customer orders. A PO finance company provides the manufacturer with a cash advance based on a percentage of the value of the goods ordered by their customer. The business then uses the cash to cover expenses related to fulfilling that order. The PO finance company is normally repaid when the business’ customer pays for the products they ordered. The finance company subtracts the amount borrowed plus their fees and interest, then passes the remainder on to the borrower. PO financing provides a business with working capital to pay suppliers and enables them to execute orders for customers where they might otherwise have to decline the order. BFC’s make either a percentage of the lenders fee or earn points on the amount of the transaction. More Info.
Lines of Credit
LOC’s come in different varieties but usually is a short-term “revolving credit” instrument issued by a bank or other non-bank financial institutions. The term “revolving” indicates that the business has an established credit limit that it can use repeatedly. The business can draw money off that credit line to cover expenses but must repay some, or all of the amount borrowed each month in order to keep the line open. Credit lines can be secured by a lien against business assets, real estate or even unsecured depending on the overall strength of the business. This type of financing is sometimes called a “credit line”, “bank line” or a “revolver”. BFC’s can make 1 to 5 points on the amount of the line. More Info.
Factoring is a term used to describe the discounted sale of Commercial Accounts Receivable. In a typical factoring transaction a business sells its accounts receivable (invoices) to a third party (factoring company) for less than their actual value. This gives the business a large portion of the invoice value now to pay operating expenses, without having to wait the normal 30 days for their customer to pay the invoice. The factoring company then collects payment from the business customers directly. Factoring is normally not credit sensitive so it provides brokers with another opportunity to help start-up businesses or those with less than perfect credit. BFC’s can make 10-20% of the factors fee for the life of the relationship. This can extend several years. More Info.
The SBA or Small Business Administration guarantees loans for businesses in certain industries that meet the SBA lending criteria. These loans are made by banks or other commercial lending institutions and not by the SBA directly. If a business meets the lending criteria the SBA can guarantee as much as 80 percent of the amount the business borrows. Lenders look much more favorably on this type of loan request because they have significantly less exposure if the business defaults on the loan. There a number of different SBA programs but the two major categories are called “7-A” and “504”. Loans funded under the 7-A program can be used for many different purposes including start-up capital, working capital, franchise purchases, equipment financing, etc. Loans made under the 504 program are much larger and designed to help businesses purchase owner-occupied commercial real estate. The maximum loan amounts for these programs can change from year to year. BFC’s can make 1-2 points on the transaction amount. More Info.
A working capital loan is a generic term used to describe financing offered to a business for the purpose of covering day-to-day operating expenses. These are normally shorter term loans secured by a lien against business assets, but can also be unsecured. Working capital loans are frequently used to cash flow shortages caused by unanticipated expenses or by “seasonal” business to cover expenses in their slow period. BFC’s can make 1 to 10 points on the amount of the transaction. More Info.
A construction loan (also known as a “self-build loan”) is a short-term loan used to finance the building of a home or another real estate project. The builder or home buyer takes out a construction loan to cover the costs of the project before obtaining long-term funding. Because they are considered relatively risky, construction loans usually have higher interest rates than traditional mortgage loans. More Info.
Apartment loans can be short-term or permanent loans that fund the purchase and/or renovation of an apartment building with rates from 5 percent to 12 percent. Investors typically use apartment building financing to purchase properties with more than five units that can generate cash flow, build equity, increase leverage, or earn capital gains. More Info.
Condominium mortgage requirements are more stringent than those for a conventional home loan, and the mortgage rates are generally higher as well. In addition, there are certain costs the borrower has to pay in connection with a condo mortgage which borrowers usually don’t encounter with a standard home loan. More Info.
Commercial Property Financing
Commercial property refers to real estate property that is used for business activities. Commercial property usually refers to buildings that house businesses, but it can also refer to land that is intended to generate a profit, as well as larger residential rental properties. The designation of a property as a commercial property has implications on the financing of the building, the tax treatment, and the laws that apply to it. More Info.
First Mortgage Financing
A first mortgage is a primary lien on a property. As a primary loan that pays for the property, the loan has priority over all other liens or claims on a property in the event of default. A first mortgage is not the mortgage on a borrower’s first home; it is the original mortgage taken on any one property. More Info.
Second Mortgage Financing
A second mortgage is a type of subordinate mortgage made while an original mortgage is still in effect. In the event of default, the original mortgage would receive all proceeds from the liquidation of the property until it is all paid off.Since the second mortgage would receive repayments only when the first mortgage has been paid off, the interest rate charged for the second mortgage tends to be higher and the amount borrowed will be lower than that of the first mortgage. A second mortgage is also called a home equity loan. More Info.
Zero Point Mortgages
Mortgage points are fees paid directly to the lender at closing in exchange for a reduced interest rate, which can lower your monthly mortgage payments. One point costs 1 percent of your mortgage amount (or $1,000 for every $100,000). Essentially, you pay some interest up front in exchange for a lower interest rate over the life of your loan. In general, the longer you plan to own the home, the more points help you save on interest over the life of the loan. When you consider whether points are right for you, it helps to run the numbers. More Info.
Fixed Rate Loans
A fixed interest rate is an unchanging rate charged on a liability, such as a loan or mortgage. It might apply during the entire term of the loan or for just part of the term, but it remains the same throughout a set period. Mortgages can have multiple interest-rate options, including one that combines a fixed rate for some portion of the term and an adjustable rate for the balance. These are referred to as “hybrids.” More Info.
Mobile Home Loans
There are only two types of manufactured home financing: a traditional mortgage and a chattel mortgage. Most people understand the traditional mortgage: find an existing home or build one, then apply for a 30-year fixed mortgage or another mortgage type and lock in a highly favorable interest rate. More Info.
Adjustable Rate Loans
An adjustable-rate mortgage (ARM) is a type of mortgage in which the interest rate applied on the outstanding balance varies throughout the life of the loan. With an adjustable-rate mortgage, the initial interest rate is fixed for a period of time. After this initial period of time, the interest rate resets periodically, at yearly or even monthly intervals. ARMs are also called variable-rate mortgages or floating mortgages. The interest rate for ARMs is reset based on a benchmark or index, plus an additional spread called an ARM margin. More Info.
Raw Land Loans
Raw land loans are meant to facilitate the purchase of wholly undeveloped pieces of property. They do differ from vacant land loans on a number of points. A Closer Look at Raw Land Loans. Raw land is generally defined as property that does not have any improvements on it whatsoever. More Info.
Stated Income Loans
A stated income-stated asset mortgage (SISA) loan application allows the borrower to declare their income without verification by the lender. These loans were designed to ease the application process for buyers who have incomes that are difficult to document, such as the self-employed and those who depend on tips as a significant portion of their income. More Info.
A credit facility is a type of loan made in a business or corporate finance context. It allows the borrowing business to take out money over an extended period of time rather than reapplying for a loan each time it needs money. More Info.
A cash-out refinance is a mortgage refinancing option in which an old mortgage is replaced for a new one with a larger amount than owed on the previously existing loan, helping borrowers use their home mortgage to get some cash. More Info.
Hard Money Loans
A hard money loan is a type of loan that is secured by real property. Hard money loans are considered loans of “last resort” or short-term bridge loans. These loans are primarily used in real estate transactions, with the lender generally being individuals or companies and not banks. More Info.
A VA loan is a mortgage loan available through a program established by the United States Department of Veterans Affairs (previously the Veterans Administration). The VA sets the qualifying standards, dictates the terms of the mortgages offered and guarantees a portion of the loan, but doesn’t actually offer the financing. VA home loans are provided by private lenders, such as banks and mortgage companies, instead. More Info.
Vacation Home Loans
A vacation home is secondary dwelling, other than the owner’s principal residence, and is used primarily for recreational purposes including vacations or holidays. Also known as a recreational or secondary property or residence, a vacation home is often situated in a different location from the owner’s primary residence. Because vacation homes are only used at certain times of year, many owners rent out these dwellings when they are not using them. More Info.
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We support you for no additional costs or fees for the life of your company. Our Senior Loan Officers are available Monday through Friday to help work on your deals. Whether you need our help ten times a day or once a month, we’re always there to assist you! You will have the confidence of knowing you are offering the one product that everyone needs… money!