Business Lending
BFCA offers a wide variety of business lending options that can leverage business assets to obtain cash for company growth and expansion. Programs can secure real estate, accounts receivables, inventory, equipment, or a combination of one or more of these assets to meet your goals. For more information, call (714) 701-1919 or (800) 877-7347, toll-free or email: jimwalter@BFCadvisors.com
Asset-Based Lending
In addition to "real estate-secured" financing, we offer financing
solutions secured by your company's assets when your loan
request may not meet your bank's criteria.
ABL facilities are formula-based revolving or term loans based on a percentage of the eligible collateral which is generally derived from collateralizing the company’s assets . Collateralized assets typically include Accounts Receivable, Inventory, Machinery & Equipment, and Real Property.
-- Amounts available: From $500,000 to $20,000,000
-- Rates: From Prime + 1% -- Priced on a deal-by-deal basis
-- Fees: From 1 to 2 points
-- Term: Evergreen
​​​​​​​​​​-- Secured by UCC filing of assets including A/R and/or
inventory, machinery, equipment, real property
-- Guarantees: Personal guarantees generally required
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Accounts Receivable Financing
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A form of secured lending giving businesses short-term financing by selling their trade receivables or pledging receivables as collateral for a loan. Accounts receivable financing is a flexible way of obtaining credit, since borrowers' financing costs are directly related to their business cycle.
Accounts Receivable loans secures your customer receivables as security for a loan or line of credit. Qualifications for the loan is based on quality of the customer base, payment history, type of industry and other factors.
Loans from $500,000 and higher are available.
Factoring
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Factoring is a financial transaction whereby a business sells its accounts invoices to a third party (called a factor) at a discount.
The sale of the invoices essentially transfers ownership of the them to the factor, indicating the factor obtains all of the rights associated with the invoices . Accordingly, the factor obtains the right to receive the payments made by the debtor for the invoice amount and, in nonrecourse factoring, must bear the loss if the account debtor does not pay the invoice amount due solely to his or its financial inability to pay.
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Factoring allows a company to focus on growth rather than the unsteady cash flow issues of sporadic payment of invoices by customers.
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​Loans from $500,000 and higher are available.
Small Business Administration Loans
(See also: Commercial Real Estate Loans)
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Small Business Administration loans (SBA loans) are government sponsored loans designed to purchase real estate or for an existing business (SBA 504 loans) or to acquire or finance a business or startup (SBA 7a loans).
Financing is available up to 90% LTV. Please review the general guidelines below.
Loan fees are generally 1 to 2 points plus normal closing costs and SBA packaging fee requirements.
SBA-504 LOAN SBA 7(a) LOAN
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ELIGIBLE BUSINESS SIZE --Business net worth not to exceed $15 million --Determined by industry type
--Average net profit after 2 yrs. cannot exceed $5 million --Annual sales not more than $750K to $33.5M
for certain industries.
-- # of employees limited to 100-1000 for
wholesale or manufacturing companies.
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LOAN STRUCTURE --50% bank loan / 40% CDC loan / 10% down -- Negotiable, depending upon risk
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USE OF PROCEEDS --Purchase existing building --Expand, acquire or start a business
--Land acquisition and construction --Purchase or construct real estate
--Expansion of existing building --Refinance existing business debt
--Finance building improvements --Provide working capital
--Purchase equipment --Construct leasehold improvements
--Purchase inventory
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PROGRAM REQUIREMENTS --51% owner-occupancy (60% for new construction) --Same
--Equipment must have 10 year remaining life --Financed assets must directly benefit the business
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COLLATERAL --Generally, project assets being financed --Subject assets acquired by loan proceeds
--Personal guarantees of persons with 20%+ ownership --Same
--Often, pledge of personal residence
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FEES --Fees are financed in the 504 portion of the loan --Fees can be financed in the 7(a) loan
--Fees are negotiated for the bank portion of the loan --Additional fees may vary
--A servicing fee for the SBA (CDC) portion of the loan
--Legal Review fee
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Copyright 2015 - Bankers Fidelity Capital Advisors
Call:
(714) 701-1919
