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Surviving Tight Credit Creative Financing

Written by: Carl Moore

Article Overview: For the Investor/ Lender, determining the suitability of a projects is still a work in progress. The Borrower needs to provide a presentation of information easy to follow. Starting with a strong executive summary. The KISS formula still works miracles.

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Surviving Tight Credit Creative Financing

By incorporating mezzanine, bridge, and equity into the capital structure of a transaction it helps you to leverage your financing. Lenders have reduce the amount of funding they will give you on project financing by having reduced their LTV (Loan to Value) lending guidelines. This added burden has had the effect of slowing down the number of transactions or project financing.

Many Investors (including hard money)are new and inexperienced, rates and terms have been inconsistent. Nothing has changed regarding perception of how good an opportunity looks. If the Person borrowing is strong, experienced, has strong financials, and can demonstrate experience in their market place, more than likely that Person will find the best pricing.

For the Investor/ Lender, determining the suitability of a projects is still a work in progress. The Borrower needs to provide a presentation of information easy to follow. Starting with a strong executive summary. The KISS formula still works miracles.

Make sure there is a defined exit strategy to repay debt. Help your lender know that in addition to providing a return on his equity, you will also be paying off the loan.

Finish by explaining where the funding is going to take you and why you should received any help. Lenders only make money when they lend…so give them a reason!


Carl Moore/ Managing Director

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Home > Small-Business-Loans > Carl Moore > Surviving Tight Credit Creative Financing
Article Tags: creative financing, executive summary, investor, tight credit

About the Author: Carl Moore
RSS for Carl's articles - Visit Carl's website

CFO Capital Partners is a group of seasoned business professionals that have come together to offer a variety of services suited to fit the needs of those seeking Corporate and Real Estate Capital. We act as Independent Business Transaction Intermediary serving both Buyers and Sellers, also specializing in the Mergers & Acquisitions of businesses in the mid-market arena, nationally and internationally. Business Transfers, Selling of Businesses, acting as Finders - all fall within our province. We also work with Cooperating Intermediary and Investment Bankers nationwide as well as in Latin America, Europe and Asia. Carl Moore/ Managing Director "We Bring Experience to the Meeting" CFO Capital Partners 437 FoxTract Rd., 1st Floor Bridgeport, NY 13030 O: 315.633.9081 * Efax: 775.248.6603 Carl@CFOCapitalPartners.com * www.CFOCapitalPartners.com Loan Programs for downloads Go To: http://www.cfocapitalpartners.com/ProjectFinancingPrograms.html

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