Conventional commercial loans are mortgages that are provided by a bank, credit union, savings institution, or other traditional financial institution. They are secured by a first lien position on the subject properties being financed.
These loans are typically best suited for inexperienced borrowers, small loan balances, specialty properties, or any other structure that may require a personal guaranty. The collateral may be any type of commercial real estate. These loans do not always require previous experience.
The short-term nature of these loans means they come with a higher interest rate than a permanent commercial mortgage loan.
The interest rate tends to be 50 to 200 basis points higher than a traditional, fixed-rate mortgage, although the interest rate may fluctuate depending on the nature of the deal.
Bridge financing gives owners the flexibility they need to reposition and stabilize properties. NEXXUS Global's conventional loan programs can provide permanent financing upon stabilization, creating a seamless exit strategy.
A development loan involves the purchase of land and lot development for further construction or sale. The land development loan funds the procurement of raw land as well as the making, installing, and construction of land improvements.
This loan can cover a variety of land preparation projects, such as the installation of a power line, water supply, and plumbing, as well as a sewer connection to the main grid.
Commercial Real Estate Construction Loans are typically secured by a first mortgage or deed of trust and backed by a purchase or takeout agreement from a permanent lender.
Multifamily loans are used by investors to finance multifamily properties between two to four units or commercial-residential properties of five units and up. These properties can include condos, townhomes, duplexes, apartment buildings, and portfolios of properties.
Mezzanine financing is often used to fill the “middle” of a capital stack. It can be structured in a number of ways, with both debt and equity.
For instance, it can take the form of junior debt – such as a second mortgage on the property. It can also be structured as preferred equity, convertible debt or participating debt.
In all cases, mezzanine financing is subordinate to senior debt, such as a traditional mortgage on the property.
Mezzanine financing is typically not secured by the property but rather the equity the owner holds in the property..
Hard money loans have terms based mainly on the value of the property being used as collateral, not on the creditworthiness of the borrower. The cost of a hard money loan to the borrower is typically higher than financing available through banks or government lending programs, reflecting the higher risk that the lender is taking by offering the financing. The increased expense is a tradeoff for faster access to capital, a less stringent approval process, and potential flexibility in the repayment schedule.
Hard money loans may be used in turnaround situations, short-term financing, and by borrowers with poor credit but substantial equity in their property. Since it can be issued quickly, a hard money loan can be used as a way to stave off foreclosure.
Loan programs designed to help small and mid-market businesses stabilize and grow
Commercial banks, private lenders, and/or private or institutional investors may offer the financing solution you need.
There are many different loan products in the market, as well as equity options.
NEXXUS can help almost any business identify the right loan or equity solution, then prepare and submit the financing package for you.
All standard SBA loans are available now. 7(a), 504, and Microloans can help most small businesses that need working capital, equipment financing, or real estate financing for owner occupied properties.
Small Business Investment Conduits provide both debt and/or equity to qualified small businesses.
Contact NEXXUS for help to determine what type of financing is best for your business.
The US Department of Agriculture offers excellent business and industry loans for eligible borrowers.
Housing and Urban Development offer multifamily property loans all over the US.
NEXXUS consultants will work with you to identify the best financing solution for your business.
STRATEGIC OPERATIONAL AND FINANCIAL MANAGEMENT. COMPREHENSIVE FINANCING SOLUTIONS.
The NEXXUS Global team has created hundreds of successful loan package submissions for all types of commercial and business loans over the past several decades.
Our clients have received many millions of dollars in business funding. If you need help preparing your business loan request so that it will be approved and fund timely, contact NEXXUS now.
Many banks and lenders use Lender Service Providers (LSPs) to assist them in successfully adding government guaranteed loans or other types of loans to their small business loan product offerings. Although such specialized professional help is frequently available to lenders, it is not usually available to borrowers.
Companies must rely on their in-house accountants, CFOs, or their CPAs to help them prepare a comprehensive yet clear and compliant loan package that will be approved by underwriting and succeed in getting the business much needed funding.
Most CFOs and CPAs do not prepare detailed loan requests every day. We have helped many owners directly, and also advised CFOs and CPAs on the best ways to package loan requests that will obtain appropriate funding for our client companies.
CREDIT ANALYSIS AND PRELIMINARY UNDERWRITING: Our experienced credit analysts work together with the owner/guarantor and business finance team to create a detailed and compliant loan request. We also provide analysis on changes impacting the credit worthiness of the loan request, up through the date of closing.
PACKAGING: As an example, the SBA and USDA have very specific requirements for approval of any government loan request. The NEXXUS team works with the borrower (our client) and the lender to make this difficult process as simple yet complete as possible. An incomplete loan application will not be reviewed by any underwriter. It will be rejected prior to review. It is therefore most important to provide as complete and detailed a loan package as possible at the first submission. It also important not to include unnecessary and extraneous material in the loan package. Wrong information can also result in loan denial.
CLOSING AND DISBURSEMENT: Professional credit analysis and loan package assistance can and usually does secure a loan approval. A serious but often overlooked concern for every borrower is at the time of closing and disbursement. Wrong or inadequate documentation can cost many thousands dollars at the closing table and for the life of the loan, if the mistakes are not corrected before the loan closes. NEXXUS performs a pre-closing review to ensure mathematical and document accuracy and compliance.
NEXXUS maintains a large and effective network of institutional and private lenders nationwide. We are very familiar with many underwriting processes and requirements.
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