Business Loans
Need to finance a small business or, even a large business? With All Commercial Finance, business financing includes virtually any type equipment and couldn't be any easier to qualify. Larger businesses may fare well, though very expensive, with Mezzanine capital which can be subordinated to primary lender debt but All Commercial Finance has extensive knowledge and capitalization reach to provide you with the right funding for your business. Contact us now to keep your business moving in the right direction!
Want to Buy a business or Start a Business with very little of your own capital?
Easier money is available for buying existing businesses... franchised or not.
There are 3 different avenues to consider when shopping for business funding:
$5,000 - $500,000 can be deposited, as a credit line, into your business account in a matter of hours!
Secured by your Business account. No credit check required. Income driven only.
If you have stellar personal and business credit, long business history and can provide a debt service coverage ratio of 200% and higher, this same line of credit may be available with no collateral and terms to fit your need.
Today, accessing business capital to start a business is not what it was before the past economic implosion. The primary difference is in the definition. Before, borrowing money to capitalize a business start was an accepted practice to line.
The store shelves and to get the doors open.
If you have stellar personal and business credit, long business history and can provide a debt service coverage ratio of 200% and higher, this same line of credit may be available with no collateral and terms to fit your need. What followed the economic meltdown is you must fund stocking your store and opening your doors for business using your own capital. And, should you survive for six months you may be eligible to qualify for a $5,000 - $50,000 startup business loan. Unless, you chose to pursue syndicated capital to start a business from ground up?
Easier money is available for buying existing businesses... franchised or not. There are 3 different avenues to consider when shopping for funding
- Non SBA Private lender loans are similar in structure to an SBA guaranteed loan. LTV/LTC up to 85% with credit score requirement 680 and above. Interest rates comparable to SBA with a 5-4-3-2-1 prepayment penalty. 7, 10, 15 and 20 year financing. Assets may include real estate, equipment and working capital.
- SBA Guaranteed Loans are excellent for business acquisition financing if you have the required down payment, guarantee fee, closing cost and capital reserves. Can generally finance up to 85%LTC. Some instances, 90% LTC. Financing range from $150,000 - $7 million, Up to 25 year financing. Assets may include real estate, equipment, working capital and inventory.
- Business Asset Leveraging is an excellent method of generating up to 100% of the cost of the business providing the price of the business is less than $5,000,000. Typical finance range is $50,000 - $5,000,000.
- Capital Syndication can be a great way capitalizes both a ground floor startup or purchase an existing business if you don't need to close right away.
Most any kind of Equipment Available at Financing Terms You Like!
Just contact All Commercial Finance to find out if Right for You.
Loan amounts on hotels and apartments can range from $500,000 to $200 million. Fixed rates on loans are also available as well as loans with adjustable rates. Debt coverage ratios start at 1.10:1 and up
Syndicated capital or Syndicated Joint Venture capital can be structured with competitive terms and rates of interest or return on investment up to 100% of the startup cost or business purchase price. Syndicated capitalization range $500,000 - $25,000,000
Mezzanine Capital is abundant for the right deal but is typically not used for startup equity funding. An existing revenue based finance product. It is generally used by corporations and financial sponsors to finance. Expected returns are generally between 13-18%.
- Leverage Buy Outs or LBOs
- Recapitalizations
- Refinancing
- Acquisitions
Typically, subordinated debt providers will lend up to a multiple of 3 times EBITDA or even higher, and finance terms range from 3 to 10 years. As does Preferred Share financing. There is no limit on the amount of preferred stock that can be used.
Mezzanine is a commercial second mortgage in effect and is a valuable tool for management seeking to raise capital in the mid and later phases of a company’s development and is not suited for start-up projects. Mezzanine financing is usually either subordinated debt or preferred equity and is a hybrid form of capitalization with features of both debt and equity. Its equity feature is that investors does not own common shares of stock in the company. And, its debt feature allows the return on investment (ROI) to be fixed and structured like an obligation of debt.
In the theater of structured finance, “Mezzanine” is a form of capital which has a claim on a company’s assets and cash flow which is senior only to the common shareholders. That is, it lies between the upper and lower level. But, holds a more secure and respected position than regular equity or venture capital. It is often utilized in conjunction with senior debt. It reduces the amount of common equity required in a business and can boost the return on investment.
Filling the gap between the senior secured debt and common equity, Mezzanine has the potential to provide higher equity returns to the sponsors through the leverage of high returns from small amounts of capital subordinate to usually much larger amount of senior debt. It is also advantageous because the typical desired return by a mezzanine lender is 13% – 23%, according to a recent survey. This which is lower than the 24% – 30% on common equity required by private equity groups, reducing the overall cost of capital for a mature company. Mezzanine Capital is provided by lenders who specialize in its distinctive characteristics.
Subordinated debt usually includes a number of special features. These include “equity participation” via warrants, success fees, or options. Together they are often referred to as “debt with equity kickers”. Equity kickers (an addition to a fixed-income security that permits the investor to participate in increases in the value of equity ownership) are important as they align the interests of the subordinate debt lender with those of the business owner. Subordinated debt also has special provisions such as “blockage period” or “fish or cut bait” provisions which permit a senior lender to prevent interest payments from being paid on subordinated debt if the covenants on the senior debt has been breached.
Preferred stock also can have any number of attributes. It may be cumulative, non-cumulative, have conversion rights (to common equity) and rights to take voting control of the company under certain conditions.
When the collateral value limits the amount of senior secured debt, Mezzanine may be a viable alternative.
See what All Commercial Finance can do for you?
There are many options for those who have a good idea, but do not have the resources to put it into practice. Not being able to bankroll the expected equity capital injection or down payment is one thing but not having the financial capacity to hire professional investment banking services allowing you to benefit the most from the private capital market is another. Contributing to the cost associated with your funding request proves your confidence and commitment to what you are trying to convince others to invest in. Being the primary beneficiary of the rewards from the business-project, you must always be the lead investor in your own endeavor.
There are many financing formats, each with its pros and cons, and we must not forget that each form has its "price", and not exactly a monetary one. In addition each one has a different opportunity cost with what before resorting to one or the other, it is essential to be very clear since we need the money and at what price we are willing to pay for it.
Taking advantage of a low cost finance opportunity, using "creative" way it is possible to do the validation of your commitment to your project with a few thousand dollars (sometimes even less). If we turn to the famous "3F (Friend, Fool or Family)" we could not only get a little capital with which to start validating the model, but we will give future investors a proof of our absolute faith in the project.
