What is your average turn-around time between application and closing?
Depending on the financing type it can take from 15 to 45 days (Industry bank average 60-90 days.). Pre- Approval letters are returned with in 48 hours.
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What does my credit score need to be to qualify for a loan?
All credit scores are considered and will vary depending on the loan type, amount and property. There are some financing situations that may not require or depend on a credit score. Generally you want to have a score in the mid 600. We have an in house credit specialist that reviews each score and determines if we can make any adjustments.
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How does the appraisal process work?
Once we receive your signed pre approval letter the lender will order the appraisal. Certified independent appraisers conduct an in depth property evaluation. This normally takes 2-4 weeks. You will receive a copy at closing. This is a third party fee and cost can vary from $1,500 to $3,500 and depends on the property type, report type, property size and location. Commercial appraisals are not like residential. There are fewer comps and more details that need to be evaluated for a commercial property.
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Is there a pre payment penalty?
Prepayment penalty and lock outs are common with commercial loans since they are not designed to be long term solution. This does not prevent you from paying off the loan early. It is an agreement to pay all of the interest that would have been due during that time frame. In most cases the lender will compensate you with an interest rate reduction.
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What type of properties due you finance?
Types
Multifamily Funeral Home
Mixed Use Retail Centers
Office Car Washes
Retail Hotels / Motel
Industrial Self Storage
Gas station Restaurant
Warehouse Commercial Condo’s
Mobile Home Park Automotive Center
RV Parks Churches
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What is the Debt-to-income (DTI) underwriting approach?
Debt-to-income (DTI) underwriting approach for financing commercial real estate offers investors and business owners the greatest flexibility. It focuses on the borrower's personal financial strength - as opposed to just the property's cash-flow - when evaluating the ability to repay the loan. So unlike traditional commercial lenders, there is no minimum debt-service requirements. As a result, Growth Financial offers many innovative features and benefits you're not likely to find elsewhere.
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What is Debt service coverage ratio (DSCR)?
Debt service coverage ratio (DSCR), or debt service ratio, is the ratio of net operating income to debt payments on a piece of investment grade real estate. It is the benchmark used to measure an income-producing property’s ability to produce enough revenue to cover the monthly mortgage payments and expenses. The higher this ratio is, the easier it is to borrow money for the property.
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Equipment Leasing
Why lease instead of borrowing money?
Leasing leaves your credit available for other business needs. Furthermore, depending on the type of lease you choose, you may be able to expense your lease payments.
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How do I decide which lease is best for my business?
Growth Financial has an experienced team of financing specialists who can help you choose the type of lease best suited for your business and the type of commercial equipment.
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Who qualifies for the Flex Equipment Leasing program?
The Flex Equipment Leasing program was specifically designed for entrpernuers that have had credit and financial challenges in the past. Any business interested in leasing commercial / business equipment may qualify. Contact us with any questions you may have.
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What if I've never leased equipment before?
That's fine. We will walk you through the entire process. At Growth Financial, our priority is providing our clients with individual attention and assist them in selecting the leasing option that makes the best sense for them.
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How large a transaction can you fund?
Growth Financial Flex Equipment Leasing program is specifically designed for transactions from $5,000 - $80,000. Although we can handle transaction up to $20 million. Feel free to contact us
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How long does it take to be approved?
Most applications are processed within 24 hours with a full application package. When your application is approved, we will prepare and send you the lease documents for signature. Once you sign and return the lease agreement, we issue a purchase order to the equipment vendor.
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What are the up-front costs to the lease?
At Growth Financial we strive to approve each customer with a 10% security deposit, for 12-36 months; using only the new equipment as the collateral.
However a large number of leases are successfully funded with deposits ranging from 15-50%. Other leases are approved with additional collateral such as 1st or 2nd liens on real estate. And many customers will pledge titled vehicles that are paid for. Feel free to get creative and explore these options with your Lessees.
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What type of businesses does Growth Financial work with?
• New Business Owners OR
• Older Businesses that have had previous credit issues.
Do I need to personally guarantee my lease if my company is a corporation?
Yes. We require that all principals of a business guarantee their lease. A public corporation may be the only exception whereby a personal guarantee will be waived.
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Will you pull my personal credit report?
Yes, we require a personal guarantee and a recent credit report for each owner of the company. This is only used as determining part of the story. We believe that common sense should determine the final credit decision.
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Why does Growth Financial require a telephone interview?
If you are new in business or have had previous credit issues, we find that there are many business operators that deserve credit if given an opportunity to "tell their story". An interview helps us understand how you intend to operate your business. It allows you to demonstrate your organization skills, integrity and describe any issues that do not show up on your credit reports & financial statements. Therefore we are eager to talk to every customer to make sure we understand your business and that you have the potential for positive cash flow. We believe that common sense should determine the final credit decision.
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Can I pay off my lease early?
Yes! You are welcome to pay off your lease at any time. There are no penalties. In fact we will provide an early-payoff discount. Simply call for a payoff and our staff will gladly provide a discounted payoff.
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What happens to the equipment at the end of the lease?
You will always have an option to own your leased equipment. We will provide you with a purchase option at the time you sign your lease. Upon termination, it will be your option to keep the equipment or return it for a refund of your security deposit.
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Do you require additional collateral?
Growth Financial does not require additional collateral for the majority of funded leases. Leases are generally approved based on your capacity to repay. From time to time additional collateral will be considered to mitigate risk. This can be:
• Larger security deposits
• 1 st or 2 nd liens on real estate OR
• Titled vehicles that are paid for.
Contact us anytime to discuss various ways to structure an approval for your business. We may even have some ideas for you!
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What if the equipment is being purchased from an individual?
Private party sales and used equipment are okay. In some cases title searches are necessary. Growth Financial reserves the right to interview the equipment seller.
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What if the equipment is being purchased from an auction?
Equipment may be purchased from an auction. You'll need to know the approximate equipment cost and your credit will need to be pre-approved so that you can act quickly at the auction. Upon approval Growth Financial will issue a "letter of credit" to be presented at the time of your purchase.
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