Commercial Lending by The Berman Group

The Streisand Team

at STERLING NATIONAL BANK

What is commercial lending?

Commercial lending encompasses a wide range of services and products geared towards fulfilling any funding needs you require. The commercial lending space involves all types of borrowing activities in business. The client may need to find lending solutions using different types of collateral, from buildings, to inventory, equipment/machinery financing, and accounts receivable. Borrowers are business owners who are seeking financing for a wide variety of reasons, including: • Expand operations • Restructure ownership • Gain capital for growth • Restructure debt • Finance or refinance the property for capital • Use collateral such as equipment or receivables for security on their loans

What can you get through commercial lending? Commercial Lending products include:

Commercial Mortgage/Refinance –

A commercial mortgage is a mortgage loan, or refinance, made using commercial real estate as the main piece of collateral to secure repayment. A commercial mortgage is similar to a residential mortgage, except the collateral is a commercial building or other business real estate, not residential property.

Term Loan –

Term loans are loans that are taken out for a specific business purpose, and are repaid over a fixed period of time. Rates for these loans vary depending upon the lenders risk, and these loans also are generally personally guaranteed. These are loans for a fixed period of time, during which both interest and principal are repaid on a regular basis, and are typically secured by strong business assets.

Machinery/Equipment Financing –

Machinery/Equipment Financing is another way to raise cash by using the machinery and equipment as collateral. The credit worthiness is based on the liquidation value of the asset. The life cycle for new equipment is usually 5 to 7 years, and these loans are fully amortized over this life cycle.

Asset Based Lending (ABL) –

Accounts Receivable Financing serves as a way for a company to secure lending by using any of the receivables as a form of collateral. This is a loan secured by accounts receivable, often a revolving line of credit, and is often abbreviated as A/R. Lenders may also require additional collateral.

Accounts Receivable Financing (A/R) –

The selling of a company's accounts receivable, at a discount, to a factor, who then assumes the risk of the account debtors and receives cash as the debtors settle their accounts.

Lines of Credit – A Line of Credit is an additional form of a loan given to a corporation as an extension of real estate or any asset, which can be used as collateral for additional lending, or to cover short-term operating expenses. It is a non-binding arrangement in which a bank lends a firm a stated maximum amount of money over a fixed (but renewable) period of time, usually one year.

Purchase Order Financing (PO Funding) – Purchase Order Financing, or PO Funding, is a short-term commercial finance option that provides capital to pay suppliers, allowing your business to better manage liquidity. Purchase Order Financing is a financing option for resellers or distributors of hard goods that lack the funds to pay their manufacturers. A purchase order represents a firm commitment to buy goods from one of these product resellers or distributors.

Hard Money Lending –

Hard Money Lending is a specific type of asset-based financing, through which a borrower receives funds secured by the value of a parcel of real estate. Hard money loans are typically issued by private investors or companies. © 2012 The Streisand Team at Sterling National bank

www.streisandteam.com

The Streisand Team

at STERLING NATIONAL BANK

The Process When working with a qualified professional that specializes in Commercial Lending, you should expect them to analyze the following: • Financial Statements for your business • Personal Financial Statements • Cash Flow Statements • Projections for the current year or longer • Tax Returns for the principals

Your Commercial Lending Specialist should be committed to offering you the most knowledgeable analysis, diverse product line, and personalized service, which can be summarized by the process below. This 5 step process will take you from phase 1 of analyzing your finances, to phase 5 of closing your loan, and has been created to outline what type of service you can and should expect from your Commercial Lending Specialist

Step 1

Step 2

Determine your needs Your Commercial Lending Specialist should review with you and your company to ascertain what your lending needs are. Whether it is a refinance of your commercial property, or Accounts Receivable Financing, a qualified Commercial Lending Specialist will investigate all areas of your company’s finances to obtain the best approach to securing and fulfilling your lending needs.

Analyzing & Qualifying Next, your specialist should review all personal financial statements and business statements, in order to understand every aspect of your day to day business. This step will allow them to pinpoint your company’s strengths, and will help them better understand what type of lending services are best suited for you and your company. They should then provide you with an in-depth qualification statement that will outline your eligibility for various products. This tool should provide analysis of all business activities, as well as clearly outline what products they believe will suit your needs and why.

Step 3

Explore Next, your Commercial Lending Specialist should explore the banking space to find out who offers the best options

Step 4

Negotiate & Close During this step, your Commercial Lending Specialist should use all available options as a tool to negotiate the best

on these products or loans, the best rates, commission/fees, and amortization/length of term. During this process the qualification statement will allow for investors to quickly and easily understand your needs, moving the process to closing in a smooth transition.

rates, commission/fees, and amortization/length of term. Once these terms have been negotiated and finalized, your Commercial Lending Specialist will move forward to complete the process and get the loan closed, as quickly and as easily as possible. © 2012 The Streisand Team at Sterling National bank

www.streisandteam.com

The Streisand Team

at STERLING NATIONAL BANK

About The Author Lloyd J. Streisand is a CPA, Senior Vice President at Sterling National Bank, and Senior Loan Officer, with 20 years experience in the mortgage industry. Based out of Great Neck New York, Lloyd is also the senior member of The Streisand Team; a nationally-ranked mortgage origination team representing individuals seeking residential lending. The Streisand Team works in conjunction with Stuart Gelb, the President and Founder of The Liquidity Source; a commercial lending services firm also based out of Great Neck, New York. Together, The Streisand Team and The Liquidity Source aim to offer their clients the best financial services for the residential and commercial sectors. As a member of Sterling National Bank, The Streisand Team has the ability to not only place loans with a Federal Bank, but to also identify other lenders that may be able to better meet a borrowers needs. This unique ability offers the strength of a Bank, with the flexibility of a broker, and more importantly affords The Streisand Team the flexibility to secure the right loan for the borrower. The Streisand Team adopted the concept of Mortgage Consulting after noticing a significant void in the banking world for an advisor to advocate on behalf of their clients’ financing needs. As Mortgage consultants, The Streisand Team offers services such as Post Closing calls, Annual Review calls, and monitoring of all clients rates on a daily basis, in

“For us, offering commercial lending services means taking complexities, and making them simple.” – Lloyd J. Streisand, The Streisand Team