Any time you are presented with multiple loan offers from Commercial Lending Corporation, you have to evaluate each one. While your experienced loan consultant will cover the differences between each program, it is still your decision to determine which loan you want to obtain. By taking the time to become a little more knowledgeable about certain loan terms, you are able to make more informed decisions.
The first thing you need to look at is the loan to value ratio (LTV) offered with the program. If you are looking to raise a large amount of money, with very little out-of-pocket costs, programs with higher LTVs are more ideal. The next item you should look at is the interest rate, and whether it is fixed or adjustable. The higher the interest rate, the more money you end up paying back to the lender over the course of the loan. Fixed rates are always preferred, over adjustable rates. Adjustable rate loans may include a fixed rate period, but once they end, your payments could increase on a regular basis and make it more difficult to meet your monthly commitment.
Another thing to look at in any loan offers received through Commercial Lending Corporation is the type of loan. Some lenders underwrite recourse loans, while others provide non-recourse loans. These terms have to do with the amount of liability you have to the lender in the event you default on the loan. Non-recourse loans limit the lender to only seek the assets used as collateral to obtain the loan, while recourse programs give the lender access to go after other assets of the company to fully satisfy your loan obligation.
You can find both conventional and private placement programs (PPP) available from Commercial Lending Corporation (CLC). These programs are able to be used for new purchases, new construction, refinancing, rehabilitation, lease purchases, and other commercial ventures. Because CLC has access to one of the largest pools of financing resources for commercial loans in the nation, you are not limited to only a few commercial programs. Instead, you have many more options in order to select the best program to fit with your business needs and requirements.
When you first contact Commercial Lending Corporation, you talk to one of their experienced loan consultants who have knowledge of all of the current programs and sources. Discussing your project with them is similar to presenting it to hundreds of lenders all at the same time. Your consultant is able to quickly verify your lending needs and recommend the solutions and programs that would be the most beneficial. Further, instead of having to fill out hundreds of loan applications and apply to each lender on your own, you only have to complete and submit a single application to CLC.
Once your application has been submitted, your loan consultant presents it to as many interested lenders, private investors, banks, and other financial partners and institutions as possible. Often you end up receiving more than one loan proposal from different parties. Whenever this occurs, your consultant will review each loan, go over the features and options, and help you select the one with the most favorable terms and conditions.
The terms used to underwrite your loan from Commercial Lending Corporation might seem confusing to some people. As with any loan program, it is worth your time to read through the loan contract to ensure you fully understand the terms and conditions. You should also review the repayment terms, interest rate, and other details to verify you are aware of your financial obligation. Fortunately, CLC and their team of experienced underwriters are there for you throughout the entire process. At any point, if you have questions, concerns, or other items you are unclear about, you are able to get answers directly from your loan consultant or underwriter.
One item you may have further questions about is how a fixed rate loan with a balloon payment works. Many people automatically assume they have to make a single large payment at the end of the loan contract to pay it off. Typically, this is not an issue, as the loan is used as a short term solution, like for a new construction project or a new product launch. However, sometimes things do not always go as planned, and you might not have enough funds to fully satisfy your final payment. What you may not realize is there can be other options available. For example, with a 5 year fixed balloon loan, you make payments over the course of the five years. Once you reach the final payment, you could be able to refinance the remaining balance into a longer term fixed rate conventional loan program with Commercial Lending Corporation.
It is worth your time to explore your options with a Private Placement Program (PPP) from Commercial Lending Corporation whenever you are looking to raise a large amount of capital. A PPP can be used for a variety of reasons, including simple deals for seed capital to open a new business, to multi-million dollar raises for high growth companies, as well as real estate transactions. A PPP provides a practical option of raising capital from private sources, which is in compliance with federal, state and SEC regulations. It is important for you to understand the rules that apply to companies raising capital using a PPP. If you sell securities improperly to investors or fail to make the proper filings, you run the risk of facing a rescission issue with your investors.
The reason your need an offering is because most private lenders typically invest between $10,000 and $250,000. While there are super-wealthy investors out there, obtaining the funding for a PPP from these few is much more difficult than soliciting investments from small to mid-level investors. As a result, most private companies are able to raise the necessary capital by pooling together investments from a multitude of private sources, rather than a few large ones.
Filing and completing your PPP through Commercial Lending Corporation gives you direct access to hundreds of interested investors. In fact, CLC will even present your offering directly to their pool of accredited investors for them to review. If they
Any time you are seeking a commercial loan from Commercial Lending Corporation, you have to understand how loans are approved. One of the most important aspects to obtaining financing has to do with the loan-to-value ratio based upon the appraised value of secured collateral. Many lenders prefer providing funds when they know their interests are protected. In the unfortunate event of a default, the lender has the ability to use the collateral in order to satisfy the remaining balance on the loan. Even with Private Placement Programs, your investors have a stake in your company which can be sold should you default.
There are different methods used to calculate the loan-to-value ratio amounts that are influenced by the type of loan you obtain from Commercial Lending Corporation. For example, a non-recourse loan typically has a lower loan-to-value ratio than a recourse loan. This is due to the fact the lender has different recovery options when defaults occur. With a non-recourse loan, the lender is only able to seize and sell the collateral, while the business’s other assets cannot be touched. On the other hand, a recourse loan gives the lender the ability to not only seize and sell the collateral, but also take legal measures to secure additional assets of the business operation, until the debt has been fully recovered.
Another determining factor used to approve your loan is your creditworthiness. If you have a lower credit score, you may still be able to be approved. However, because you could be viewed as a higher risk to lenders, you often end up paying a higher interest rate on the loan proceeds.
Any time you need to fund the development of a new product, you have different options for raising the required capital. Some organizations use conventional loan programs to procure the funding. Other organizations look for private investors, rather than taking on additional loans. Securing funds from private sources is a major undertaking that often requires the help of an experienced firm, like Commercial Lending Corporation.
Most companies have to rely on pooling money from multiple sources, rather than one large investor. In order to accomplish this, you require putting together a Private Placement Offering and filing the appropriate paperwork with the SEC and other government agencies. How quickly you are able to complete your filing, issue your Regulation D Offering, and solicit investors depends upon whether you are attempting this on your own, or getting assistance from Commercial Lending Corporation (CLC).
Using CLC to put together your private placement program (PPP) has its benefits. You get direct access to CLC’s underwriting team of experts, as well as their legal department. Further, CLC already has access to private investors who are willing to supply funding for a variety of projects, including new product development. CLC has hundreds of Proprietary Accredited Investors looking for good investments. In addition, the typical amount of time needed to close your PPP and raise the required capital using CLC ranges from 45 to 90 days. It should be pointed out that certain items are unable to be included in your PPP, such as appraisals, inspections, and insurance reviews. These items have to be paid for out of pocket in order to complete the underwriting of your PPP.
Operating a small hotel or motel involves being able to compete with the larger chains. You have to be willing to provide similar amenities and accommodations to your guests, just like the larger hotels in your area. Not being able to offer these options often has a direct impact on your occupancy rates. In order to keep your rooms booked and occupancy rates high, you may need to consider remodeling your hotel or motel. Securing the financing required to undertake such a project is possible with assistance from Commercial Lending Corporation.
This A+ rated Better Business Bureau lender has solutions available to fit with your specific needs and requirements. Commercial Lending Corporation (CLC) has direct access to one of the largest pools of money available on the market today. By working directly with CLC, it is like presenting your rehabilitation project to hundreds of lenders all at the same time. Their experienced underwriters are able to quickly determine which programs would best suit your situation. Instead of having to apply for each program individually, you can submit a single application, along with the required documentation, and have it presented to all interested lenders.
As a result, it is possible for you to end up with multiple rehabilitation loan offers from different parties. Whenever this occurs, your CLC underwriter will discuss each loan program, its features, and help you discover the one that provides the best benefits. For example, you might be able to obtain a higher loan-to-value ratio with one program, while another has a lower interest rate.