Using Creative Financing in Credit Starved Times
Using Creative Financing in Credit Starved Times
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) have rushed in to provide the 5 – 20% differential needed for “The Deal” expecting to receive the higher yield available to them. Because many 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!
Using Creative Financing in Credit Starved Times - To learn more about this author, visit Carl Moore's Website.
Like this article? Share it with your friends
Using Creative Financing in Credit Starved Times
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) have rushed in to provide the 5 – 20% differential needed for “The Deal” expecting to receive the higher yield available to them. Because many 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!
Using Creative Financing in Credit Starved Times - To learn more about this author, visit Carl Moore's Website.
Like this article? Share it with your friends
 | |
 |
No article feedback found. |
| |
Leave Your Feedback |
 | |
| |||
|
To learn more about the Evan Elite Author Program please contact us. |
 | |
|  |
Subscribe to Carl's articles
 | |
|
|  |
 | |
|
| |
 | |||||||
|
 | ||
 |
||
 |
||
 |
||
|
| ||
 |
| Have you written articles that would be of value to entrepreneurs? Become an expert on our site by publishing them! Expose yourself to a wide audience, drive more traffic to your website and get more sales! Click Here for details. |
|
|
 |
| Modeling the Masters: Learn the true secrets behind Walt Disney's business success factors & grow your company! Video produced by Phanta Media |
|
|
 |
"Learn straight from Evan how you can Make a Full Time Income (And More) from a Website"
Click Here To Learn More |
|
|
|
|
Get advice & tips from famous business owners, new articles by entrepreneur experts, my latest website updates, & special sneak peaks at what's to come!
|
|
|
 Book of Leadership Instant Press Release Positive Thinking Think Networking Trainning Template |
|
 | ||
 |
The Top 10 ProBlogger Posts
Best Posts for Bloggers | |
 |
Top 50 HR Blogs 2009
Top 50 HR Blogs 2009 | |
| ||
 | ||||
| ||||
|
| ||||
| ||||
|
|
|
|
|
||||||||||||
|
Email us your ideas on how to make our website more valuable! Thank you Sharon from Toronto Salsa Lessons / Classes for your suggestions to make the newsletter look like the website and profile younger entrepreneurs like Jennifer Lopez and Sean Combs!
|
|
|
| ||||||||||
|
| ||||||||||
|
|
||||||||||