Boston-based lender navigates persistent obstacles to deliver previously unattainable financing for self-storage facility borrower.
Virtually no challenge was absent from this SBA 7(a) real estate loan request: subordination negotiation, debt ratio shortfall, collateral risk, prohibitive insurance, you-name-it.
Boston-based finance innovator South End Capital Corporation (SECC) has once again stepped up to the plate with a commercial finance solution no bank could bring home.
The borrowers were seeking a commercial mortgage on an NJ self-storage facility, plus working capital and closing costs. As far as the other lenders the borrower had approached were concerned, the barriers presented were insurmountable.
Once SECC was consulted, however, the whole picture changed for the concerned mortgage-seeker.
According to South End Capital’s Founder and Managing Director, Noah Grayson, “Virtually no challenge was absent from this SBA 7(a) real estate loan request: subordination negotiation, debt ratio shortfall, collateral risk, prohibitive insurance, you-name-it. But our team just doesn’t give up easily.”
For the $578,000 loan amount, details included:
Refinance of a $624,000 first mortgage (SECC negotiated the subordination)
$40,500 working capital and the balance to cover closing costs
6% interest (2.75% + prime), amortized over 25 years and adjustable quarterly
“The hours we put in on tough transactions like this one would scare most lenders away,” Grayson declared. “But South End Capital is in the business of providing solutions that other lenders simply cannot offer to the marketplace. This closing and other recent SECC closings demonstrate just how well our uniquely structured programs are delivering.”
South End Capital Corp. works directly with borrowers and routinely with brokers, paying referral fees to its approved partners. To inquire about the many innovative programs available through South End Capital Corp., contact Joel Soforenko directly at (888) 268.7778 ext. 2 or joel@southendcapital.com
Tuesday, June 17, 2014
Tuesday, June 10, 2014
South End Capital Closes $3.2M SBA 7(a) Loan for Dentist Office Acquisition and Construction
SECC eclipsed national banks with flexible and aggressive SBA 7(a) program that bundled borrower’s property, debt refi, construction funds, equipment purchase and more.
Other lenders wanted more collateral, would not finance the non – real estate portions of the loan, and had unreasonable prerequisites for financing the construction aspect. SECC was able to provide a solution even the borrower hadn’t envisioned.
The latest SBA 7(a) loan closing from Boston-based finance innovator South End Capital Corporation (SECC) highlights just how different this lender is from its competition in the marketplace. For the purchase of an office condominium for a dental practice in Forest Hills, NY, SECC came through with a broad-based creative solution that also met numerous peripheral financing needs for the borrower. A score of national and regional lenders had not been able to offer the borrower a workable solution.
“The creativity of our loan structure is what made this work for the borrower,” explained South End Capital’s Founder and Managing Director Noah Grayson, who pointed to the firm’s exceptionally flexible and aggressive SBA 7(a) program. “Other lenders wanted more collateral, wouldn’t finance the non – real estate portions of the loan, and had unreasonable prerequisites to finance the construction aspect of the loan. But we work each loan request uniquely and were able to provide a solution even the borrower hadn’t envisioned.”
For the $3,215,000 loan (real estate purchase price of $2,250,000), the borrower put down only $232,500 or 7.2% of the total project costs. A 138% loan to real estate (LTV) purchase price, with NO loan points, was provided. Interest rate: 2.25% + WSJ Prime or 5.5% on a quarterly adjustable rate, amortized over 21.5 years. More details:
$216,697 was provided to consolidate existing debt
$168,245 was provided to purchase new equipment
$537,152 was provided for construction/renovations and office build-out
$90,408 was provided as working capital
Balance of funds covered loan and construction soft costs
“South End Capital was conceived expressly to provide solutions that other lenders simply cannot offer to the marketplace,” Grayson stated. “This closing and other recent SECC closings demonstrate just how well our uniquely structured programs are delivering.”
South End Capital Corp. works directly with borrowers and routinely with brokers. To inquire about the many innovative programs available through South End Capital Corp., contact Joel Soforenko directly at (888) 268.7778 ext. 2, or joel@southendcapital.com
Other lenders wanted more collateral, would not finance the non – real estate portions of the loan, and had unreasonable prerequisites for financing the construction aspect. SECC was able to provide a solution even the borrower hadn’t envisioned.
The latest SBA 7(a) loan closing from Boston-based finance innovator South End Capital Corporation (SECC) highlights just how different this lender is from its competition in the marketplace. For the purchase of an office condominium for a dental practice in Forest Hills, NY, SECC came through with a broad-based creative solution that also met numerous peripheral financing needs for the borrower. A score of national and regional lenders had not been able to offer the borrower a workable solution.
“The creativity of our loan structure is what made this work for the borrower,” explained South End Capital’s Founder and Managing Director Noah Grayson, who pointed to the firm’s exceptionally flexible and aggressive SBA 7(a) program. “Other lenders wanted more collateral, wouldn’t finance the non – real estate portions of the loan, and had unreasonable prerequisites to finance the construction aspect of the loan. But we work each loan request uniquely and were able to provide a solution even the borrower hadn’t envisioned.”
For the $3,215,000 loan (real estate purchase price of $2,250,000), the borrower put down only $232,500 or 7.2% of the total project costs. A 138% loan to real estate (LTV) purchase price, with NO loan points, was provided. Interest rate: 2.25% + WSJ Prime or 5.5% on a quarterly adjustable rate, amortized over 21.5 years. More details:
$216,697 was provided to consolidate existing debt
$168,245 was provided to purchase new equipment
$537,152 was provided for construction/renovations and office build-out
$90,408 was provided as working capital
Balance of funds covered loan and construction soft costs
“South End Capital was conceived expressly to provide solutions that other lenders simply cannot offer to the marketplace,” Grayson stated. “This closing and other recent SECC closings demonstrate just how well our uniquely structured programs are delivering.”
South End Capital Corp. works directly with borrowers and routinely with brokers. To inquire about the many innovative programs available through South End Capital Corp., contact Joel Soforenko directly at (888) 268.7778 ext. 2, or joel@southendcapital.com
Tuesday, June 3, 2014
Business Cash Flow Loans - No Real Estate Required
New Private Money, Small Business Loan Program from South End Capital Debuts with Two Swift Closings
Brand-new program rescues small business borrowers previously dependent upon credit card receivable loans, merchant cash advances and factoring.
- Before our new program launched, small business owners rejected by banks and SBA financing had only painful options: merchant cash advances, credit card receivable loans or factoring programs with daily payments and rates up to 130 percent.
Under a freshly launched Non-SBA Business Loan Program from Boston-based South End Capital Corporation (SECC), those who have been unable to finance expansion and other business needs finally have a welcome and affordable solution.
Prior to the new program announcement by SECC Founder and Managing Director Noah Grayson, the only options for small business owners who didn’t qualify for bank or SBA financing have been painful ones: merchant cash advances, credit card receivable loans, or factoring programs with untenable rates of up to 130%, often requiring daily loan payments.“Without owning hard collateral such as real estate or equipment, it’s been unspeakably difficult for many hard-working owners of profitable small businesses to get their hands on the capital they urgently need to grow their operations,” Grayson stated. “But our new Non-SBA Business Loan Program doesn’t require hard collateral. And this is a private money business loan program with much more manageable rates than other non-bank or non-SBA programs. There are bi-monthly or monthly payment options, and no prepayment penalties in most cases.”
Additional details of the nationwide, cash flow – based program include interest rates starting at 7.99%, loan terms out to four years, credit scores down to 600, and ultra-fast closings (as little as three days). Most businesses in the US will be considered, and business owners should be delighted by the limited documentation requirements and one-page application. More program information can be found on the SECC website.
SECC’s initial closings within the new program highlight the many benefits available: An accounting firm owner with a 715 credit score and healthy business income was seeking a $75,000 expansion loan but, because of the small loan size and borrower’s lack of hard collateral, the firm was turned down by all lenders approached. SECC, however, closed the loan in only seven days, based strictly on the cash-flow of the business. An added plus: zero out-of-pocket expenses to the borrower.
The second closing, for a dental practice, involved a loan amount of $150,000 to provide working capital and expansion funds for equipment and a new office location. The borrower had solid credit and business cash-flow but no real estate collateral. She needed the improvement funds quickly and didn’t have the time to jump through SBA or bank loan hoops. Working with SECC, her loan closed three days after she accepted the loan offer.
Grayson is proud of his company’s fair and innovative solutions for business and commercial real estate borrowers nationwide—a niche SECC has effectively carved out since 2009. “This closing and other recent SECC closings demonstrate just how well our expanded programs are delivering,” he offered.
To inquire about the many innovative programs available through South End Capital Corp., contact Joel Soforenko directly at (888) 268.7778 ext. 2, or joel@southendcapital.com
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