Tag Archives: capital
Introducing High LTV Auto Dealer Financing Using Enterprise Value
This product is ideal for those dealers who are looking to rapidly expand their business by allowing them to obtain loans in excess of 100% of their real estate value. Unlike conventional lenders, Auto Dealers Capital is able to provide financing against a dealership’s goodwill or reputation, also referred to as the Enterprise Value, allowing borrowers to benefit from higher loan amounts which are typically unattainable with traditional financing venues.
Why is the High LTV program unique?
- Enterprise Value takes into consideration a dealership’s market penetration, profitability, franchise strength, and future performance to allow loans to be underwritten up to 150% of the real estate value.
- Ability to generate proceeds in excess of that provided by traditional lenders and/or captive finance companies, who typically will not lend above 85% LTV, even for larger dealers.
- Individually customized loans for the dealer’s specific needs work to unlock the long-term value of their investment without exposure to unreasonable risk. Usually, full personal guarantees are only required for the loan amount portion in excess of the real estate value.
What are the benefits of the program?
High LTV (Loan To Value) Auto Dealer Financing is essential for dealers looking to gain working capital to take advantage of any of the following expansion opportunities:
- Acquire other dealerships to increase market share, maximize brand awareness and increase profitability along with satisfying other future capital needs as they occur over time.
- Create Employee Stock Ownership Plan (ESOP) for tax benefit advantages and increased personal liquidity while maintaining operating control.
- Reduce financial risk by refinancing short-term debt with variable interest rates to long-term debt with fixed interest rates.
- Eliminate needing or adding partners or to gain control by buying out existing partners.
- Increase customer satisfaction by improving facilities and providing new services and technologies or even for the purchase of the underlying dealership real estate.
Commercial Bridge Loans
What are commercial bridge loans?
Many a times a company is approved for a loan through its bank, or financial institution, but the loan doesnt close for four to six months. During this time the company can take the help of a short-term commercial bridge loans, which can be repaid when the senior loan closes. Commercial Bridge loans can help the company to meet their financial needs and remain stable.
Are you in a process of finding capital for your new business or looking for your business expansion? By now, you must have found that arranging finance for a company can be time consuming, stressful and equally frustrating. However a little bit of planning and preparation before hand will save you lots of disappointment and aggravation. Like any partnership, business which is what obtaining commercial bridge loans are, the partners want to guarantee you have researched your opinions and know what exactly you require before coming to them for commercial business loans.
There are number of ways to generate a cash flow for your business. Hence remember that not all may be right for you. Suppose you business is starting point or small you may not be eligible for a commercial bridge loan.
You can avail a commercial bridge loan for any purpose. This includes the capital for commercial property or equipment, restructuring debt or for working capital. The terms for this type of commercial bridge loan are that the loan is for 12 months or less and that there is a proposed exit strategy.
The following list can help you identify the types of information the banker will want from your end when you apply for a commercial loan.
· Three years income tax and financial statements · Year to date profit and balance sheep statement · Your Performa for the next 12 months · Length of the loan · Federal and state tax information · Personal finance statements · Your collateral sheet · Well-written business plan
Obtaining a commercial bridge loan can be a bit difficult especially when you are unaware of the correct entities that provide such funding. Today one can find numerous lenders and private investors who assist businesses with a Commercial bridge loan. You can avail funds anywhere around $1,00,000 to $10,00,000. Its all about selecting the right loan resource to meet your loan needs.
Tips that can help you help you select a right business loan lender
Commercial lenders are fussy. So just relax even if your loan gets down, simply go to the next four cheapest commercial loan lenders on the list and apply with a simple mouse click. There are lots of A paper lenders; B paper lenders and easy C paper lenders. Make sure that you are dealing with dedicated and pre-approved lenders with knowledge and decision making ability.