All lending (but specifically Government Lending) is an art and not a science. What this means is that if you cannot present yourself properly to the lender, fail to keep up to date with the changes in government lending programs, apply to a bank that doesn’t finance your industry, are unfamiliar with the required format of your business plan or complete your projections or any other financial data incorrectly, you will end up being turned down for financing.
Last year alone, USA Funding successfully processed over $40,000,000 in loans for clients who were turned down by lenders before coming to us for help. These were business owners who were creditworthy but could not navigate the difficult application processes set forth by the lending institutions.
USA Funding is staffed by a team of trained accountants and bankers with over 120 years of combined experience in the Government and Commercial Lending Industry. Our team will quickly ascertain your ability to be approved for financing, provide you with a rate and term quoted by our lender (pre-approval) and furnish you with a complete list of references that we have successfully funded within the last 12 months. All this can be accomplished within 48 hours and at no cost to you!
Most importantly, USA Funding will take a complete application package and will orchestrate any missing items from your accountant and attorney.
In summary, you keep running your business and we will do everything associated with getting you your financing!
USA Funding is the direct correspondent of several banks that share with us their exact requirements for approval. This means we can review all your documentation and know whether or not you are going to pass muster with the loan committee prior to application.
Utilizing a governmental loan to purchase a commercial provides many advantages, such as:
- A possible smaller down payment
- A straight amortization of 25 years with no balloons
- A possible assumability to creditworthy borrowers
- More flexibility with underwriting requirements
In some instances, we are able to utilize government lending programs to finance the purchase of 51% owner-occupied real estate with as little as 10% down and up to 40% of the remaining balance fixed for 25 years.
USA Funding is staffed by a team of experts who can complete your request much faster than industry norms. We provide our clients with all requirements for processing their loans immediately after application. Typical closing takes place within a time frame of 30 to 90 days depending on the complexity of the transaction.
With an SBA loan, a business can finance 100% of the equipment cost (including installation costs), should they decide to do so. Compare this to standard equipment leasing companies, who will lease your equipment (for shorter periods of time and at much higher interest rates which carry higher monthly payments) and will not cover any installation or set-up costs. Leasing companies have pre-payment penalties for equipment, while SBA does not. Equipment borrowed with an SBA can be prepaid at any time.
Another option is to finance your equipment through your commercial bank. In this case, most commercial lenders traditionally require the potential borrower to inject up to 25% of the equipment cost into the transaction and will only finance the remaining 75% for a five-year term at best (leaving the borrower with a much higher monthly payment).
USA Funding, through our lenders and the SBA, can provide a fully amortized loan for machinery and equipment that carries a 10-year term with no prepayment penalties! In addition, they will also consider financing the setup and rigging of the new equipment if needed. Additionally, and most importantly, SBA loans for machinery and equipment carry no pre-payment penalties and have no balloons.
As common sense would dictate, the proposed loan must be reasonably secured to assure its repayment. In other words, there should be sufficient collateral to cover the loan amount in case of a default situation.
Lack of collateral, however, is not a determining factor in denying a loan; although if an applicant does have assets, the SBA may ask them to be pledged. Each situation is different and must be reviewed on a “case by case” basis by our team.
USA Funding is a commercial finance and bank servicing firm which acts as the loan production unit for several of the larger and more aggressive lenders participating in the NJ and NY markets. USA Funding generates processes and closes over a $100 MM a year in loan volume.