Loan Amounts
Loan amounts are $2mm to $35mm
Terms are generally one to five years but can be structured longer for real estate.
Timing is typically three to five weeks from an executed term sheet.
Structures
- Senior Secured asset-based lending
- Acquisition Financing via sale/leaseback of assets
- Bridge loans
- Sale/leasebacks
- DIP Loans
- Note purchases
- “UCC Article 9” Sell
General Terms and Conditions
- Collateral Base is primarily equipment and manufacturing with real estate often considered
- Structure is loans and leases with typically no covenants
- Terms are 36 – 60 months amortization. Early prepayments with apply
- Interest rate is dependent on the credit profile and asset class
- Advance rate is generally 70% – 80% of newly appraised Forced Liquidation Value (FLV) and/or Orderly Liquidation Value (OLV)
- Due diligence deposit is normally around $10m to $15m which covers lien searches, on-site appraisals, and depends on the extent of the due diligence required. This is refundable after all expenses have been paid
- Inspection and legal expenses are determined after all parties have agreed to move forward after the initial due diligence