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 –
1. Especially for manufacturers
2. Wholesale cost of goods to be purchased or manufactured
3. 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
-
>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
- 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 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 if 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.
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