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