Broker Funding Source: ISO’s – Get all the funding your clients need

Broker Funding Source

Use an ISO broker funding source that gets you the highest approval rates and the most diversity of programs.   Increase your income by providing several forms of financing to your customer’s.

Advantages of these broker funding sources include asset refinance:

More businesses will prequalify for this product than any other product because more businesses have equipment than any other asset.

– Machinery, Construction Equipment, Tractor Trailers and Farm Equipment.
– More businesses qualify for $5K to $25K than for larger amounts such as $250,000
– Fund difficult to fund restricted industries, such as used car dealers, attorneys and others.
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Faq, frequently asked questions on broker funding sources

Why should I offer these programs to my business customers?
Brokers should offer these programs to their customers because of the wide range of business funding programs that are available. You want to offer business loans that will help your customer the most and some loans are not right for them. Each customers strengths are different and will match up best to certain programs. Some of your customers should be funded with unsecured programs and others will match up better with secured programs. You can decide on a case by case basis.
How do I become an independent loan broker?
The easiest way to become an independent loan broker is to establish a customer base and have a steady source of business loan leads. From there you can learn the sales skills and products and how to talk to your customer about them. Having customers is a key to success. You can get a business license with the Secretary of State and have an office and staff but if you do not have customers then your business will not be successful.
What does a commercial loan broker do?
A commercial loan broker advertises loans to businesses. Once they have contact with a business they find out what the customer is trying to do and what problem the business is trying to solve. In short, what is the need of the business? The broker then offers the business the products that will help them the most. They go over the options with the business and give them an idea of terms and rates. Then the broker submits the customer to the best funding sources for that need. When there is an approval the broker reviews the offer with the customer and orders closing documents when the customer is ready. The broker finishes by helping staying in close contact with the customer while they complete the closing documents and required stipulations. Brokers are paid on renewals

Clawbacks or no Clawbacks

A Clawback happens if the customer defaults soon after the financing transaction is funded.  The funder asks the broker to return the commission.   This normally happens if the customer has defaulted within 30 Calendar days of closing or between 21, 22 or 23 payment days.    Our asset based as well as some of our revenue based MCA Merchant Cash Advance transaction do not have a clawback or are much more limited in the possibility of a Clawback.    Contact us to ask about this.

Most businesses have either revenue or Equipment.   With these multiple flexible programs, you will be able to get a very high percentage of your customers approved and funded.

Broker Funding Sources

This product can be very effective as an additional loan product.  Offer along with your main loan products that you already offer.  As an example, you are a broker that offers merchant cash advances and accounts receivables financing.   Your client wants $200,000 and you have secured $125,000 maximum in funding through your 2 core funding products but the customer still really needs another $75,000.  Your client is a Manufacturing company and they have Accounts Receivables.    By factoring their receivables, you obtain the extra $75,000 that they need.

Meet all of your customer’s loan needs

We have other broker funding source options, including loans against Retirement accounts and Against Commercial Real Estate.   By offering many products as a broker, you will be able to offer your customer every product they may qualify for.    Some customers may not get the funding they need through just one or two programs.   By being able to tap into other programs like unsecured and commercial real estate backed loans, some customers can get the full funding they need instead of falling short of their goals.

Use a broker funding source. Get the highest approval rates and the most diversity of programs. Multiple programs to get clients all the funding they need.

broker funding source
Help solve your customer’s problem and give them what they need for their business!

 

Associates and Brokers: On Deck is getting harder to get signed up with and stay signed on with.
There are background checks, interviews, questionnaires of qualifications, as well as exercises.    Many brokers are unable to get signed on or are discouraged.   Some brokers cannot qualify for OnDeck and meet their requirements.   We have been working with On Deck for over 10 years.

Submit to us for immediate access to their best-in-class funding programs.  This includes low rates, longer terms, weekly payments and fast online checkout funding.  
Just submit a completed and signed app and the most recent three months’s business bank statements.    We can send you a quick 30 second online application for your customer’s to complete!
  • 6 month and up to 24 month offers.
  • Daily and weekly payments.
  • Same day approvals and funding opportunities
  • Online closing with corp office assistance to help push through any last minute closing hurdles and issues.
  • Buy rates as low as  1.10
  • $5,000 to $250,000
  • $200k + in annual revenue, $3k avg bank balance, 3 or less neg days per month, and 1 yr in business needed
  • Offers start with a 600 FICO
  • 1st position lines.   Customer must net at least 50% of funds after payoff if another funder is being payed out.
  • Build business credit for your client.
  • Renewals at 50% are available.

Thank your for visiting our broker funding source page.  Because the success of your business is our goal.

If your customer needs help improving other areas of their business, they can contact SCORE the  is the nation’s largest network of volunteer, expert business mentors

Home Sales drop increases need for broker funding sources?

The National Association of Realtors reported today that sales of existing homes dropped 3.8% from a year ago in May.    This drop may well cause some prospective home purchasers to consider the use of a broker’s expertise.    The broker will in turn consider direct as well as broker funding sources.

Many skilled brokers have the knowledge of which sources have the programs to underwrite the borrower.    Consumers are rate and terms driven and have little, if any understanding or thought to the fact that underwriting criteria will vary somewhat from institution to institution.

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As a result, consumers should consider a skilled broker that will employ both direct funding sources and broker funding sources in their quest to successfully underwrite the borrower.

Complete the “Contact us” form in the menu bar above to establish a broker relationship with us, or Call us at Toll Free: 855-787-1113 or Tel: 919-771-4177.

We provide asset based funding for businesses, from equipment leasebacks to bank statement financing, Small Business Loans Depot offers niche and unique funding programs for referral brokers.

Leaseback increases with production increases?

Will recent increases in U.S. production result in leaseback increases with production increases?

Small business loan depot’s questions and reviews whether there will be leaseback increases with production increases via  the details of the Federal Reserve’s reporting that U.S. manufacturing production fell .4% in April following 9 straight monthly increases. Indications are that increases in assets available to corporations may expand U.S. businesses ability to offer collateral for a leaseback and to persue leaseback financing.

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When production in automotive manufacturing is eliminated from the statistics, factory production rose .2% in April.   It will be too premature to determine if this level of production increases, specifically in one sector will result in leaseback increases with production increases.

Small Business Loan Resources:

 

Public Radio Planet Money – All issues money related to the public.

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Real Estate Leaseback versus Equipment Leaseback

Why do an Real Estate Leaseback versus Equipment?  If your goal is to get $100,000 or higher, a Real Estate Leaseback may be better.    If your company needs less than $100,000, an equipment leaseback has several advantages over a real estate leaseback.

An equipment leaseback can often times be completed with just a one page application.   An equipment leaseback does not often require a formal asset appraisal by an independent company.  The transaction is faster.   It typically only requires 1 or 2 weeks completion time.   Closing is easier and less documentation is required.
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Since less paperwork and financials are required, less information is analyzed that could cause a decline.   The more documentation that is required, the more likely something will trigger a decline.

The above factors should be considered when deciding which financing to apply for.

Small Business Loan Resources:

Realtor.org –  National Real Estate Organization Trade organization for real estate agents. Includes overview, code of ethics, activities, and membership information.

More Small Business Loan resources:

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Leaseback terms; Number of Months

Typically, the maximum term for leaseback transactions involving equipment is 60 months.    In some cases, the term may be longer, though this is not common.    The clear rational for the shorter term on leasebacks is that the equipment’s value will deteriorate too much and the equipment itself will obsolete prior to the completion of the lease, both closely related reasons.

For technology, or computer leasebacks, the maximum term is often 36 months, somewhat inhibiting the size of technology leaseback transactions.   If the Asset is Real Estate, the number of Months may be much longer.   The number of Months may be up to 180 Months or 360 Months with.   If the term is that long, there is often an early payoff option after 24 Months as well as an exit strategy for the borrower.   The exit strategy often involves selling
selling the property.

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Small Business Loan Resources:

U.S. Department of Commerce – Helps american businesses become more innovative at home and competitive abroad.

U.S. Bureau of Economic Analysis – Provides statistics on consumer spending, corporate profits, travel and tourism and much more.

Entrepreneurworld – Resource for Entrepreneurs, including starting your own business, growing your business.

Bureau of Labor Statistics – Provides companies with up to date information on employment, demand, hiring, productivity and other information that may be useful to companies.

International Trade Administration – Creates jobs and economic growth by promotingU.S. companies abroad to governments in other countries.

More Small Business Loan resources:

 

Public Radio Planet Money – All issues money related to the public.

Thank your for visiting our Small Business Loan resource page!

Is Credit Important on a Leaseback?

Is credit important on a leaseback?   Yes,  credit is important for a leaseback.    The vast majority of funding programs are concerned with the ability and the willingness of the borrow to repay.

Many times, potential borrowers ask, there’s enough collateral there, why do you need to look at my credit?     On a leaseback, the collateral may even be Real Estate, or valuable Industrial or construction equipment.    If the borrower defaults, what does it matter.

It  is not the lenders desire for the borrower to default.   In fact, it is typically the last thing they want.    If the borrower defaults, now the lender has to reposes the equipment.   Then they have to hire an outside vendor to liquidate the collateral.   By the time this is all done, the lender has often taken a substantial loss.   The lender would much rather the borrow simply repay the monthly payment. The lender earns their interest, the transaction is fully paid and the lender moves on.

These are the reasons why credit is looked at.   If the collateral is valuable, weak credit may not be a make or break issue for the lender.     With valuable collateral, the lender’s primary interest in looking at the credit is to make sure the potential borrower does not have current past due credit.

As a result,  it is clear that credit is important on a leaseback.   However the transaction may be approved and closed even if the credit is not good.   The Equity in the Asset may override the need for good credit.   These decisions are at the discretion of the Lender.

Is credit important on a leaseback Resources:

More is credit important on a leaseback? resources:

Public Radio Planet Money – All issues money related to the public.

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Commercial Real Estate Leaseback

Can a business get a Commercial Real Estate Leaseback in this market with current real estate values?   Yes, Commercial Real Estate Leasebacks are happening.    Full appraisals,  additional scrutiny of cash flows through the review of 2 to 3 years of tax returns, bank statements, rent rolls if not owner occupied, and lower LTV’s, and more may well be required in the current environment.   The lower LTV on a commercial real estate leaseback is a big issue.

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The lender wants to protect themselves in a sinking market by lowering the LTV’s.     Instead of 60%, 70%, or 80% LTV’s, 40% – 60% LTV’s may be in order.     After a sound cash flow situation of the borrower is verfied, the lower loan to value will primarily protect the lender in this environment.    This is to be expected to continue throughout 2011 and 2012.

After the full appraisal is completed, if the value is sufficient and credit is acceptable, the lender will do an environmental survey.  Upon passing the survey, the lender is ready to proceed with a Commercial Real Estate Leaseback.

Commercial Real Estate Leaseback Resources:

Realtor.org –  Provides important sales and statistical real estate information

 

 

 

Traditional 10% – 30% LTV Leaseback

Current funding options with traditional funding sources for a traditional 10% to 30% LTV leaseback remain limited real time.    If a traditional funding institution currently is still considering a traditional 10% to 30% leaseback on equipment and it is approved, be prepared to only receive the standard maximum 30% of the current value of the equipment.

Only hard assets, such high value manufacturing equipment is typically accepted.   In some cases high value construction equipment is accepted as well and will fall in line with the traditional 10% to 30% LTV leaseback.

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However, SmallBusinessLoansDepot.com has a unique program will will pay up to 60% to 70% of the current value on industrial and other types of equipment.    This is far greater than the traditional 10% to 30% LTV leaseback.    The transaction is fast and simple, only a one page application.

Simply click one the “Contact Us” and complete the mini-app, or contact us at Toll Free: 855-787-1113 today to begin the process and get an industrial leaseback against your industrial equipment today!

Traditional 10% to 30% LTV leaseback resources:

Public Radio Planet Money – All issues money related to the public.

Thank you for visiting our traditional 10% to 30% LTV leaseback page.

 

Computer Leasebacks

A computer leaseback is a loan against computer equipment. For businesses that have free and clear new technology equipment. Assets need to be more than $100,000 in value and also less than 90 days old.

What is required?

Simply provide a list of your company’s most valuable computer electronic equipment.
Invoices may have to be provided.    Equipment more than 3 months old may not
be accepted.    The most recent 2 years business tax returns may be required along
with Profit & Loss statement. Purchase Invoices may also be required.

Complete the 1 page application, equipment list.  Your business will receive a response with in 2 business days.   The entire process takes about 5-10 business days or more.    Most computer leasebacks are done in the $100,000 and higher range.

Public Radio Planet Money – All issues money related to the public.

Industrial Leasebacks

Leaseback of Industrial Equipment

Businesses considering an industrial leaseback, which is a loan against industrial equipment, are in a strong position to obtain working capital if they have free and clear industrial equipment with significant value.  Often, industrial equipment is valuable and does not lose it’s worth as quickly compared to other types of equipment.

Equipment often used in an industrial equipment leaseback include CNC Milling Machines, manufacturing equipment, conveyor systems, interior cranes, automotive manufacturing equipment, steel manufacturing and producing equipment and molding equipment.

An industrial equipment leaseback is often not as dependent on business credit and personal credit as many other forms of financing are, as long as there is significant value in the equipment.   Other industrial type of equipment may be used such as large Trucks.
Over the Road Trucks, 18-Wheelers can be used to obtain capital.   Terms between 24 and 48 months are available on these.
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Terms on a loan using industrial equipment are 24, 36, 48, or 60 months.   The customer submits a one page application and list of equipment they currently have.    In some cases, if the equipment is free and clear but has a very low balance, the amount owed can be paid off from the proceeds.  For amounts up to $50,000, only a 1 page application and equipment list is required in most cases.  If the request is for over $50,000 then 1 or 2 years financial statements may be required.

Loan using industrial equipment Resources:

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