Business Loan - No Real Estate Collateral

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South End Capital News View this email in your browser Recent Funding $605,000 Business Loan - No Real Estate Collateral Transaction Overview - Steel Fabrication, Co.  Earlier in the year this borrower needed $122,100 of quick working capital and didn't have time to wait for an SBA loan. We provided his business working capital in a matter of days, and when he was ready, started him on the SBA takeout loan process. We consolidated the balance of our private business loan, paid off additional business debt, provided $89,000 of fresh working capital and $370,000 for machinery and equipment. This loan was priced at 6.25% and amortized for 10 years. SBA Unrestricted Program SECC offers an aggressive SBA loan program priced at a maximum annual interest rate of 6.25%, amortized over 10 years (25 years, if the business has available real estate collateral). The program features one affordable monthly payment and often no prepayment penalty. SECC can consolidate a business owner’s expensive debt or merchant cash advances, remedy stifling business issues, provide expansion funds and offer unrestricted working capital to assist with new growth and other business needs. SECC imposes few business-type restrictions, will consider borrower credit down to 580 (or lower), can work with past borrower bankruptcies or foreclosures, and will fund from $250,000 to $5,000,000 in all 50 states. Closing Highlights Steel Fabrication, Co. North Carolina No real estate collateral Working capital provided 6.25% rate, 10 yr. term Monthly payment No prepayment penalty Apply Online Program Highlights Program Parameters Nationwide Financing from $250K to $5MM  Low credit score minimum All industries considered No collateral required Broker rebate available Email a Scenario About South End Capital South End Capital Corporation "SECC", founded in February of 2009, is a nationwide, non-conforming lender (CA Finance Lenders License # 603 L334) providing collateralized and uncollateralized loans to business owners and real estate investors directly, and in participation with third-party lenders. Contact Us  (888) 268 - 7778 x 2 joel@southendcapital.com

SBA Loan Scenario - Mixed Use Property Qualifies for SBA Loan

Who:

1.            Borrower owns and manages banquet   facility
2.            Borrower has owned this business for five years
3.            Borrower business income meets all loan requirements
4.            Borrower has middle credit score of 635

Property Type:

1.            Mixed Use – Residential & Retail
2.            Three apartments on the 2^nd Floor               
               Business on the 1^st Floor               
               Basement is finished and used by the Business
3.            FMV       $2,200,000          MTG      $1,600,000

What:

1.            Note of current lender is now due for pay off
2.            Borrower wants conventional rates and terms

Where: Memphis, TN

When:   Standard SBA Loan closing time is 45 – 60 days

How:    

1.            Borrower has exhausted his conventional and non-conforming loan options
2.            Lenders had issues with:               
               a)   Open floor plan of the first floor               
               b)   Location of the property               
               c)   Credit scores of the Borrower

Decision:  Eligible for SBA Loan

Why:

1.            SBA Lender has no minimum credit score requirements 
2.            Business had required net cash flow
3.            SBA Lender underwrote the loan based on the business nature of the property   
               and qualifying appraisal
4.            SBA Loan requirement is the business must use 51% of the building’s square footage               
Eligibility Cure:

1.            Use of the basement added the necessary square footage to business usage for the    
               51% square footage requirement to be met

              
               Call or email Joel Soforenko and go over your Loan Scenario               
               888-268-7778 x 2 or joel@southendcapital.com

SBA Loan Scenario – Credit Card Issue (Borrower as Co-Signor Owes Debt)

Who:

1.            Borrower wants to refinance his business debt
2.            Borrower went through a divorce to a trial
3.            Borrower and Ex-Spouse were ordered to split the credit card debt                and were responsible for paying off their portion of the debt
4.            Borrower’s Ex-Spouse did not pay off the court ordered debt
5.            This debt is found on the Borrower’s Credit Report as a charge off
What:

1.            Borrower cannot obtain an SBA Loan until this credit issue is dealt with.
2.            Bills to be paid off total $25,000

Where: Milwaukee, WI

When:   As soon as this issue is resolved, the loan can close

How:    

1.            Borrower went through all his options including friends, relatives,                reviewing personal and business assets
2.            Borrower could not find the means to pay off the subject debt

Decision:  Not Eligible for SBA Loan

Why:

1.            Recent charge off which could go to judgment. 
2.            FICO Score was not the issue
Eligibility Cure:

1.            The Lender of choice was apprised of the situation and cured the issue                by including the $25,000 as working capital

2.            The Borrower was allowed to use the working capital to pay off the charged off                debt at the closing. 

Call or email Joel Soforenko and go over your Loan Scenario
888-268-7778 x 2 or joel@southendcapital.com

Loan Scenario - Purchase Bar & Grill

Who:

1.            Borrower has dreamed of owning a tavern
2.            Borrower is a bank branch manager
3.            Borrower has experience as a tavern chef
4.            Borrower rents a residence and has $125,000 in a bank account
5.            Borrower has very good credit

What:

1.            Tavern went out of business
2.            Tavern leased its location
3.            All assets of the business are for sale and taking over the lease
4.            Purchase price of assets is $400,000 dollars with an additional cost of $70,000                dollars for all other parts of the transaction.  Total $470,000.

Where: Dallas, TX

When:   Needs 60 day closing

How:    

1.            Borrower needs loan to include purchase of assets, purchase of liquor license and                renovation of the interior of the premises
2.            Borrower has negotiated the purchase price of the Seller’s assets
3.            Borrower will work with municipality to obtain the liquor license
4.            Borrower needs to research the cost of renovation

Decision:  Not Eligible for SBA Loan

Why:

1.            Borrower does not have required experience as a manager or owner in the                industry.
2.            Borrower does not have transferable skills any other transferable skills to                own a tavern
Eligibility Cure:

1.            Borrower can find a partner with the requisite experience.
2.            Partner will need to have a minimum of 5% ownership of the new company
3.            However, SBA Lender, Countrywide Standards is this Partner will have to fully                guarantee the loan. 

Call or email Joel Soforenko and go over your Loan Scenario
888-268-7778 x 2 or joel@southendcapital.com