Funding Pre-Requisite

Step 1. Client Submission

  • Copy(s) of the Contract(s)/Purchase Order(s) to be pledged.
  • History on the Company and their Customer(s)(an Executive Summary or a copy of a business plan. Include information on the products or services contracted for and information on the other party(s) involved in this contract as financing will also be contingent on their ability to perform.
  • Time line Description of Procedures

___ Inception to Repayment. Include names, addresses, dates,phone numbers, contact information, etc. from beginning to end on completing the work and how and when repayment is made.
___ Detailed Budget of Costs – Especially for Manufacturers. Wholesale cost of goods to be purchased or manufactured, employees and equipment needed for production and break down of these costs.

Conditions of Engagement for Services

  • Executed Contract
  • Proof of Retainer
  • Executive Summary
  • Product
  • Manufacturers Information
  • Distributors Information
    • Funding may be subject to all or one of the following:

      • A Purchase Contract Agreement
      • A Purchase Order
      • A Personal Credit Score of 700
      • A Business Credit Score of 750
        • General Procedures

          • Clarify the investment strategy and unique edge
          • A business plan, including cash flow projections and a timeline for execution
          • External consultant agreements: independent accountant, attorney, prime broker, fund administrator, custodian
          • Name for the operating entities (general partner/managing member/investment manager) and the fund(s)
          • Members of the management team (Chief Executive Officer, Chief Operating Officer, Chief Financial Officer, Chief Compliance Officer, etc.) including outsourcing services
          • Corporate Set up: banking relationships, office space, business equipment, trading accounts, staffing, IT/website, etc.
          • Structure compensation, profit sharing, and retirement plans
          • Disaster recovery plans
          • Adequate business, life and health insurance
          • An Advisory Board
            • Preparatory Steps

              • Determine legal entity, structure (onshore, offshore, parallel, master-feeder vehicles) and appropriate jurisdiction
              • Evaluate registration options and costs to assure compliance (SEC, CFTC, NFA, FINRA, etc.)
              • Blue sky laws
                Potential regulatory changes
              • Determine the provisions to be included in your offering documents
              • Capital transactions

                >Subscriptions
                >Redemptions
                >Lock-up periods/gates/suspensions

                Allocation of profits and losses

                >Incentive allocation or fee
                >High-water marks, loss carry-forwards, hurdle rates and claw-back clauses
                >Side pockets
                >New issues

                Management fee
                Portfolio Valuation
              • Determine the year-end tax reporting needs
              • Consider for tax purposes
              • Aggregate vs. layering approaches for maintaining records
                Trader vs. investor
                Section 475 election
              • Establish compliance, risk and valuation guidelines

              Funding Services

              • Prepare and review with appropriate parties
              • Offering Memorandum
                Subscription Agreement
                Partnership Agreement
                Prime Brokerage Agreements
                ISDA Agreements
                Custody Agreements
                Counterparty Risk Agreements
                Compliance, Risk and Valuation Guidelines and Manuals
                Due Diligence Questionnaire
                Marketing and Website Materials
                Registrations
                Exemptions
                Corporate Certifications

              Eligible properties include but are not limited to:

              Tier 1 Properties (up to 100% financing available)

              Alternative Energy-Green Projects – Financing for the construction and development of any qualified green energy project, construction and development
              of multi-family including independent living, assisted living, memory care, medical facilities, office buildings, shopping centers, other commercial and industrial projects.

              Not For Profit Projects – All churches and Christian Schools nationwide requiring $150,000 or more in financing with a 3 year operating history. Universities, Colleges and Hospitals requiring $500,000 or more.

              Multifamily – Structures containing five or more dwelling units with common area facilities such as entrances, lobby, elevators, stairs, mechanical space, walks or grounds. Units must be rented on a non-transient basis such that tenants consider their unit their permanent residence. Properties that offer weekly or monthly housing would not be considered multifamily properties.

              Mixed-Use – Mixed-use properties must contain at least one commercial unit (retail, office etc.) and at least one residential unit. Common types of mixed-use properties include a ground floor retail or office unit with apartments above, all within the same building. The primary use at the property must be for residential purposes in order for it to be considered Tier 1 mixed-use. The mixed-use property type can be classified in any tier depending on the percentage of the multi-family component and the type of commercial use.

              Tier 2 Properties (up to 90% financing available)

              Bed & Breakfast – Bed and Breakfast inns are residential-type buildings designed for transient boarding and are family style in character. B&B inns are usually one structure but some may include an adjacent guest cottage with similar quality amenities as the main unit. Owner operators live on-site, usually within the main building.

              Light Industrial – Light industrial is characterized by a small size facility where no heavy manufacturing or specialized industrial process takes place. Office space within light industrial ranges from 3% to 25% of the total area. Buildings must include sufficient plumbing and lighting to accommodate personnel. Common uses found in light industrial properties may include: cabinet making, assembly processes, home service industries, etc. Absent from these properties is any type of heavy machinery, welding operations, cranes or hazardous materials.

              Mixed-Use – Mixed-Use properties must contain at least one commercial unit (retail, office etc.) and at least one residential unit. If the primary use at the property is for commercial purposes, the property will fall under our mixed-use Tier 2 guidelines. The mixed-use property type can be classified in any tier depending on the percentage of the multi-family component and the type of commercial use.

              Automotive – Automotive is a somewhat broad category and encompasses a variety of uses that support the automotive segment. Included within this category are auto repair shops, new and used car lots, part supply stores, quick-lube facilities, car wash, tire repair shops, etc. The type and size of building will vary with the use. Many buildings are designed specifically for the auto trade characterized by overhead doors, car lifts and usually a small office area.

              Mobile Home Park – Mobile home parks are considered as long as not more than 25% of the total spaces are used for RVs. Mobile home parks vary in quality and amenities and all will be considered unless the RV component is too high.

              Hotels/Motels – With our industry knowledge and expertise, we feel we understand the non-flagged world of hotels and motels better than most lenders. Our valuation assumptions are based on facts relative to the specific property.

              Office – Office buildings are buildings designed for general commercial occupancy and are normally subdivided into smaller units. Office use implies a general business use that does not include retail, manufacturing or warehouse type operations.

              Retail – Retail buildings includes stand-alone buildings designed for retail sales and display and usually have display or decorative fronts. This retail classification encompasses a wide variety of uses including, but not limited to: markets, convenience stores, drugstores, department stores, big box retailers, barber shops, laundromats, offices, supermarkets, bakeries, and beauty shops – as well as strip centers, and neighborhood and community shopping centers, etc.

              Self Storage – Mini-warehouses are warehouses subdivided into a mixture of cubicles of generally small size, designed primarily to be rented for small self-storage or noncommercial storage and may include some office-living space. This category also includes cold storage, RV and boat storage facilities, and truck terminals (transit facilities).

              Warehouse – Warehouse buildings are designed primarily for storage purposes. An amount of office space included is usually commensurate with the quality of the building but typically rages from 3% to 12% of the total area. Plumbing and lighting are usually limited due to anticipated light personnel load. The design of the building usually includes a light frame with large open interior areas. Cold storage and transit warehouses (truck terminal) are included in this category.

              Tier 3 Properties (up to 90% financing available)

              Funeral Home – Funeral homes include those used for viewing purposes as well as those that include embalming services.

              Industrial – Where the principle structure is designed for manufacturing processes, heavy assembly or involves the use of heavy machinery. It contains an average amount of office space commensurate with the quality of the building and the intended use. May be single- and multi-tenant facilities that may also be used for warehousing, distribution, research and development. Generally, their heavy frames, walls and floors, specialized manufacturing processes and power or utility service characterize industrial facilities.

              Rooming House – Rooming houses are similar to that of multifamily but the nature of the occupancy is more transient. Rooms are rented on a daily, weekly or monthly basis and usually only include a bedroom. The residents share the bathroom and the kitchen. Rent paid usually includes all utilities and units may be furnished. Most rooming house properties contain less than 20 units.

              Tier 4 Properties (up to 70% LTV and 90% CLTV financing available)

              Day Care – Day Care Centers are early childhood, handicapped, adult, and senior care facilities; or developmental centers, such as kindergartens, nurseries, or children pre-schools. They have light kitchen facilities, activity rooms and multiple rest rooms, and are more residential in character than schools.

              Health Care – Included in this category are all Assisted Living or Nursing Home types of operations where a license is required to operate the business. Quality and service levels vary considerably. Also included in this category are hospitals and medical treatment facilities, such as outpatient care or walk-in emergency medicine.

              Restaurants – Restaurants are constructed for the purpose of preparation and sale of food and/or beverages, which include cafeterias, bars, and taverns, where design is of restaurant type. We offer competitively priced financing for a wide range of properties, including owner-occupied and leased facilities as well as fast-food and full-serve restaurants in neighborhood settings or urban.

              RV Park – RV parks are those that are designed for recreational vehicles. May include mobile home pad rentals but will be considered an RV park if 25% or more of total park is for RV. Transient type occupancy is common.

              Other Considerations

              Aviation – Includes commercial, corporate and private aircraft financing for domestic and international clients. Fixed and rotary wing aircraft, equipment, hanger and airport financing.

              Maritime vessels – Includes barge, container ship, car ferry, cruise ship, cruise vessel, cruise yacht, dinner cruiser, dry docks, fast ferries, ferries, freight vessel, oil field vessel, passenger ferry, tanker, tugs, tow boat, workboat and yachts.

              Rolling stock – Over the road equipment such as semi-tractors and trailers and includes railroad cars, tractors, trailers, fuel delivery vehicles, aircraft re-fuel, cranes/crane trucks, waste trucks, concrete pump trucks, concrete mixer trucks, airport ground support equipment, dump trucks, utility & bucket trucks, sewer/septic pumper trucks, tank trailers and water well drilling trucks.

              Assisted Living Facilities and Adult Congregate Living Facilities – will be considered for SBA, conventional and high LTV funding available.

              Auto Service – any kind of engine repair/service or paint and body shops-SBA, conventional and high LTV funding available.

              Bowling Alleys, Skating Rinks, and Golf Courses – will be considered on SBA, conventional and high LTV funding available.

              Free standing churches and churches located in strip retail centers – are acceptable.

              Bed and Breakfast – SBA, conventional and high LTV funding available.

              Non-Contiguous Properties – Must all be located within the same county. Conventional and high LTV funding available.

              Gas Stations – With convenience stores. SBA and conventional funding available.

              MHP/RV Parks – Valuation will include pads (i.e., land) and permanent structures. Conventional and high LTV funding available.

              Heavy Industrial – Heavy machinery, heavy manufacturing, and /or heavy assembly operations. Long term equipment financing available.

              Student Housing – Conventional and high LTV funding available.

              *We are able to offer financing for:
              <>··Private Investors, Angel Investor, • Micro lenders, Venture Capital• Banks • Startup Funding• Foundations• Business Funding• Private Equity

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