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What
will my interest rate be? |
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That
depends on four items - Collateral, Credit, Term and
Transaction Size. On hard collateral deals the
yields start 5.5% and up to 8+%. The shorter the
term, the lower the yield. The A credits will be on
the lower end and the C credits on the higher end.
For the tech collateral, the yields will range from
8% - 12% based on the same A-C model. These are soft
collaterals such as IT, telecomm, and copier.
For small ticket
financing, 50k and under, the terms for the hard and
soft will range from 7-10% and 11%-15%. This
excludes startup financing. |
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What
do I need to provide the finance co from an
underwriting perspective? |
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For
deals under 50k we require an application, vendor
quote and 3 months business banking. For over 50k,
an application, equipment quote, Year end 2009
Corporate Tax Returns and most recent quarterly
interim Balance Sheet and Income Statement. |
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How
has the current market conditions affected credit
decision, structure and rate? |
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The
path to success in this economic environment is
traveled by understanding the client, their credit
profile, needs and coupling that with an
understanding the banking and funding sources that
match those needs. The typical A-C credit scale has
shifted and more and more clients are finding
themselves in the perceived B profile that requires
structure and actual B pricing. Imperative to
transacting these deals is firstly, conveying the
proper and realistic message to our client.
Establishing the proper expectation allows us to
fulfill what we set out to do.
Clients need to understand the culture of full
disclosure and this allows our lenders to get
comfortable with the deal and give them the best
terms. Structuring deals is at a premium which
means, down payment, co borrowers,
collateralization, personal guaranties, et al.
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Can
we get financing as a startup? |
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Yes. It
will cost differently than an established business.
It is predicated on the strength of the Principals
and an understanding of the business. We look at all
deals to understand the business plan and not to
paint every client with the same brush. |
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Can
we finance Used Equipment? |
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Yes.
Generally, the asset needs to a hard asset with a
longer useful life. Rates are reflecting of risk. We
have financed a 20 year old piece of collateral but
a good rule of thumbs is Year 2000 or newer. |
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Who
is underwriting these deals? |
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We work
with some of the largest banks and finance companies
in the country but importantly, smaller, regional
finance companies that are typically more flexible
and may understand a footprint (local) client better
than the next. We have hedge fund partners to round
out our 60+ funding portfolio. |
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What
is the timeline on achieving funding? |
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If the
client provides the proper financial package, an
underwriting decision is rendered between 24-72
hours based on an Application Only packet vs. a Full
Financial Packet. An approved client will be emailed
documents within 24 hours of their acceptance of the
terns. Upon receipt of the signed documents, we will
issue a purchase order to the equipment manufacturer
or reseller. Once the equipment is installed, we
will conduct and verbal and/or written D&B and fund
the transaction within 72 hours. |
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Why
choose Patriot Funding Corp? |
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Patriot
Funding Corp�s executives have over 30 years
equipment financing experience with major lending
institutions. The experience, expertise coupled with
the vast network of financing relationships allows
the most diverse funding product available on the
market. It is competitive credit requirements, rate,
structure and term. That along with the ability to
communicate these items with our clients sets us
ahead of the competition. We are willing and able to
sit down with our clients, face to face, to
ascertain their needs on a personal level and in
turn achieve those needs. |
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