funding program matrix
DESCRIPTION
101794978 Guidelines for Quiet TitleTRANSCRIPT
What does my client qualify for???? This is a very common question! It is the confusing maze of funding options available to businesses of all sizes, and at all stages of development including start up’s. Our knowledge, lending partners & years of combined experience in the lending industry, that enables us to help clients to quickly gain the cash assets they need to move their business projects forward. Let’s get to the point! We’re here to help you get your clients the funding they needs & also help you close more deals! After all, you’re not in business for your health right? There only 4 ways to obtain funding for any business. 1. Credit based, 2. Revenue based, 3. Asset based, & Finally 4. Private money. We offer all these funding options here at Pennington Consulting Group. We are experts in analyzing the facts and determining which one of the paths mentioned will help the client reach their objective. (Details of each option below.) 1. Credit Based" funding. This is the most common and quickest form of business funding, and conversely, it is the most abused and misused form. Pennington Consulting Group will help you to properly develop and utilize your Credit Based options, in the methods most advantageous toward helping you reach your goals. In addition our Unsecured Business Line (UBL) Program also: Pennington Consulting Group Unsecured Business Lines (UBL) Program Benefits:
A) Build Business Credit: None of the UBL will report on the client personal credit
report, the lines will only report on the business credit report. This helps in building
the business credit profile, so that in the near future the business no longer has to
depend on the owners personal credit for future financing needs.
B) Increase DTI: Since the Unsecured Business Lines only report on s business credit
profile, It will not affect the clients personal Debt to Income Ratio (DTI).
C) Flexibility: We offer 6-12 Months of 0% Interest on all newly established lines, in
addition the account is a revolving line, which means the business will always have
access to the available credit anytime they need to. Plus unlike a loan the borrower
only pays on the amount used which allows the borrower to focus on profits. NOTE: Did you know that Pennington Consulting Group will help guide you through the process of setting up a separate business credit score...free of charge?
•�� There Only 4 Factors in Qualifying for our UBL program (Keep in mind we have a solution for each factor).
1.� Derogatory Items: Lates, Collections, Charge�Offs, Tax Liens, Judgment’s, & Bankruptcies. Depending on
how much effect the derogatory item has on your credit profile, also based on your funding goal, we will make a
decision if the item must be removed before you can qualify for our Unsecured Business Line Program. We offer
a Credit Consulting Services to help those clients with damaged credit.
2. Utilization: Calculation is based on the total balances divided into the total limits of all your revolving accounts. Based on the age
of your file we figure out what your target Utilization should be.
3. Age of File: We require that our clients MUST have at least a 2�5 year Age of file based on the oldest account reporting on your
credit profile. (Please see the charge below)
Age of File Target Utilization
5�9 Years � 10�14%
10�14 Years � 15�19%
15�20 Years � 20�24%
>20 Years � 25�30%
This is just a guide, sometimes there are exceptions.
Please look over your Evaluation Report for Target Utilization. (WE DO LOOK AT COMPESATING FACTORS)
4 Inquiries: Of course, inquiries are just not a good look and this is about 10% of what FICO Score Algorithm evaluates. And what we
have seen, based on our experience working with our past clients, more than 6 inquiries per bureau within the last 6�12 months must
be removed before we can get started.
2."Revenue Based" funding. Perhaps the simplest form of attaining funding for an existing business, its proper utilization is often neglected or grossly miss-managed. Our program is simple, if the business has revenue we fund 8%-15% of the business annual revenue. In addition our Revenue Based funding program also offers:
Pennington Consulting Group Unsecured Business Lines (UBL) Program Benefits:
A) No Credit Score Requirement: even though this program is not credit based, credit is looked at as a compensating
factor and a way to evaluate risk.
B) Credit Reporting: We have options with some lenders were they will not report the loan to personal or business credit.
C) No UCC Filing (Uniform Commercial Code): AS most business loans require UCC Filing some of our lenders do
not file a UCC under the business.
D) Pre-Payment Penalties: None of our revenue based loan programs have a pre-payment penalty.
NOTE: When Pennington takes on a client, we don't just work to help that client receive the cash assets, we help our clients develop the best
strategies for using and paying back those cash assets.
Office: 1001 W Walnut, Rogers AR 72756 | Email: [email protected] | Toll Free: 800.910.3570
PENNINGTON REVENUE BASED LOAN REQUIREMENTS
“Our goal is to help you reach your goal”
LOAN LIMITS 5,000 - $1Mil (NON SBA / NOT A CASH ADVANCE TRUE BIZ LOAN)
LOAN TYPES Any business related loan that will contribute to the growth and
expansion of the business within its industry.
MAXIMUM LTV No LTV Requirement (cash-flow based loan)
BUSINESS TYPES Most Businesses Considered
ELIGIBLE LOCATIONS Nationwide (all markets considered)
COLLLATERAL Business Assets and Personal Guarantee/s (no real estate collateral)
CREDIT PROFILE
551 Minimum Credit Score (Restaurants /Retail/Medical /Hotel or Motels) 600 Minimum Credit score (Other businesses) Additional Credit Requirement (no foreclosures, current bankruptcies,
back taxes, pending lawsuits or judgments)
INTEREST RATE 7.99% - 24.99%+(risk based)
TERM/AMORTIZATION 1- 5 Years
LOAN POINTS 10% (negotiable based on loan amount)
PREPAY Minimal based on risk Non in Most cases
UNDERWRITING Business must have 2 or more full time employees Business must have a physical (non-home) office Business cash-flow must be able to service the loan payments
CLOSING TIMEFRAME Loans generally fund 5-10 business days from application
THIS PROGRAM IS NOT
This is NOT a merchant cash advance, factoring or credit-card processing loan. This is a cash-flow based loan secured only by the assets of the business and based on risk, borrower might have to personally guarantee the loan.
The Pennington Consulting
Group Difference
Nationwide Program FAST Closing within days. Most Businesses Considered NOT a cash advance; a true bank loan with benefits Closings in 5-10 Business Days
3."Asset Based" funding. Surprisingly, this may be the most widely utilized way to borrow money for real estate, & business acquisitions. And it is also commonly abused and misunderstood. Let Pennington Consulting Group assist you to properly structure & develop advantageous options for your current or next project. Give us a call today and let’s discuss your current scenario:
4. Private Money: is a commonly used by finance professionals. It refers to lending money to a company or individual by a private individual or organization. While banks are traditional sources of financing for real estate, and other purposes, private money is offered by individuals or organizations and may have nontraditional qualifying guidelines. If the deal makes sense then our lenders will fund it.
“Call us TODAY & let our experienced consultants help you or your client structure you next deal.”
CONVENTIONAL (SMALL BALANCE) AGENCY/CONDUIT PRIVATE/HARD MONEY
Prime Alternate SBA FNMA/HUD CMBS Non-Conforming Bridge
ELIGIBLE OCCUPANCY Owner Investor Owner/Investor 504 (Owner) 7(a) (Owner) Investor Owner/Investor Owner/Investor Owner/Investor
LOAN SIZES $250K-
$10M+
$250K- $10M+ $100K- $5M+ $500K- $10M+ $50K- $5M+ $500K+ $5M+ $50K- $500K+ $500K+
PROPERTY TYPES Office, Retail, Mixed-Use,
Commercial Condos,
Industrial, Warehouse, Self-
Storage, Auto-Service, Funeral
Home, Day-Care, Franchise
Restaurants, Assisted Living.
Multifamily (5)
or More Units,
Mixed-Use,
Retail, Office,
Commercial
Condos,
Warehouse,
Light Industrial.
No restricted property types
except Multifamily and Land.
“Business only” loans are
available under the SBA 7(a)
program from $50K to $350K (No
real estate collateral required or
allowed).
Multifamily (5) or
More Units,
Assisted Living,
Student Housing,
Healthcare.
Multifamily (5)
or More Units,
Office, Retail,
Industrial,
Hospitality,
Self-Storage,
Mobile Home
Parks.
Investor SFRs and
Multifamily (2+) Units,
Office, Retail, Mixed-Use,
Commercial Condos,
Industrial, Warehouse,
Self-Storage, Auto-Service,
Funeral Homes, Day-Care,
Mobile Home Parks.
No restricted property
types except owner
occupied SFRs and
Multifamily 2-4 Units.
LOAN TYPES Purchase,
Refinance,
Cash-Out
Purchase,
Refinance,
Cash-Out
Purchase,
Refinance,
Cash-Out
Purchase,
Construction
(start-ups in
CA only)
Purchase,
Refinance,
Working
Capital, Rehab
Purchase,
Refinance, Cash-
Out, Rehab,
Construction
Purchase,
Refinance,
Cash-Out
Purchase, Refinance, Cash-
Out, Rehab
Purchase, Refinance,
Cash-Out, Rehab
CROSS COLLATERAL No No Yes No Yes No No Yes Yes
CREDIT MINIMUM 680 680 None None None 680 640 600 None
FOREIGN NATIONALS No No Yes No No No Yes No Yes
LOAN-TO-VALUE 65% 65% 75% 80-90% 80-90% 80% 75% 65%-90% 80%
SUBORDINATE LIENS Yes Yes Yes Yes Yes No No Yes Yes
INTEREST RATES 4.0%- 7.0%+ 4.0%- 7.0%+ 3.875%- 8.5%+ 4.25%- 8.22%+ 4.25%- 8.22%+ 3.75%- 5.0%+ 4.5%- 6.0%+ 9.5%- 12.25%+ 6.5%- 15.0%+
TERM (YRS.) 1, 3, 5, 10 1, 3, 5 3, 5, 7, 10, 15,
20, 25, 30
Quarterly Adj.,
5, 10, 25
Quarterly Adj.,
5, 10, 25
Quarterly Adj., 5,
7, 10, 15, 30, 35,
40
5, 10 5, 15, 25 1, 1.5, 2 (longer case-
by-case)
AMORTIZATION (YRS.) 20, 25 20, 25 15, 20, 25, 30 20, 25 10, 25 30, 35, 40 20, 25, 30 15, 25 Interest Only
PREPAY PENALTIES Various Various Declining Various Declining Various Various Declining None
ELIGIBLE LOCATIONS Nationwide,
all 50 States
Nationwide, all
50 States
Nationwide, all
50 States
Nationwide, all
50 States
Nationwide, all
50 States
Nationwide, all
50 States
Nationwide, all
50 States
Nationwide, all 50 States Nationwide, all 50
States
DSCR MINIMUM 1.20x 1.40x 1.15x 1.20x 1.25x 1.00x- 1.45x 1.25x 1.25x N/A
RECOURSE Full Full Full or Non Rec Full Full Non-Recourse Non-Recourse Full Full or Non Rec
Other Loan Programs: Ask Foreign SBA Business FNMA to Stated
National Loans $500k Loan
Loans Program
This document is a demonstration of terms available and is not a loan commitment or guarantee of financing. The terms outlined above are estimates and subject to change. PCG is a wholesale commercial real estate
finance company and commercial mortgage broker resource, this document is for commercial finance professionals only and not for retail distribution.
Investor 1- 4
Non-Owner Occupied
SFR, Condo, 2-4 Unit
Loan To Value Max 70% *
FICO ≥ 700 7.49%
FICO < 700 7.99%
Traditional II
Office, Retail, Warehouse, Self-Storage,
Automotive Service (no gas stations)
Max 65%
7.99%
8.49%
Investor 1- 4
Non-Owner Occupied
SFR, Condo, 2-4 Unit
Loan To Value Max 70% *
FICO ≥ 700 7.99%
FICO < 700 8.49%
Traditional II
Office, Retail, Warehouse, Self-Storage,
Automotive Service (no gas stations)
Max 65%
8.99%
9.49%
Brian Otieno
Phone: 800.910.3570
Direct: 479.445.5805
“Our goal is to help you reach your goal”
3 Year Fixed Rates
Traditional I
5+ Unit Multifamily & Mixed-Use
Max 75% *
7.49%
7.75%
5 Year Fixed Rates
Traditional I
5+ Unit Multifamily & Mixed-Use
Max 75% *
8.49%
8.75%
Rates & Terms
*
Loan Amounts…………………………...… $100k - $5MM (Investor 1-4 Max loan amount $2MM)
Rebates……………………………………… 1 Point Broker Rebate = .50% add-on to rate (Maximum Rebate 2%)
Amortization/Term………………………… 30 year fully amortizing / 30 year loan (Call for other amortization options.)
Index / Margin / Cap……………………… WSJ Prime + 4%. Rate Caps = 2/1/6
Prepayment Penalty………………………. Equal to fixed period (Minimum Prepay = 1 year)
1-6 residential units in NJ = no prepay, add 1% to rate
Prepayment Buydown(s)………………… Investor 1-4: 1 year buydown add 1.00% to start rate
Tradational I&II: 1 year buydown add .50 to start rate OR 1% in fee
Rate Buydown……………………………… 1 pt. fee = .50% rate reduction (Maximum 1%) | Minimum Rate 6.49%
Loans < $750K……………………………… add 50 BPS to the above mentioned rate (traditional I & II Only)
LTV Limitations………………………. FICO < 700, max LTV is 70%, Investor 1-4 loans > $1MM = 65% max LTV
General Guidelines Lending……………………………………… Locations Nationwide
Income Verification…………………….. Simple Documentation
Credit Score…………………………….……650 Minimum
CLTV…………………………………………. 80% Maximum CLTV
Broker Fees…………………...…………… You may charge up to 5% of the loan balance (origination + rebates ok)
1st Time Buyer, Investor, Free/Clear………… reduce maximum LTV by 5%
Assumability…………..…………….……… Loans are assumable at Lender's discretion - 1% fee
Impounds…………………………..……….. Required for property taxes & insurance.
Appraisal Process & Fee………………… Contact your Loan Officer to hear about our streamlined process and cost
Ineligible Locations……………..…….……Contact your Loan Officer for details
Matrix Date 07/01/14
For more information or to submit a loan request, please call 800.910.3570
Pennington Consulting Group | 1001 W Walnut, Suite 4 | Rogers, AR 72756
All rates, programs and pricing subject to change at any time. This rate sheet is intended for use by mortgage professionals only and is not an advertisement under section 226.24 of
Regulation Z, and is not intended for use by the general public.. © 2014 PCG, LLC. All rights reserved.
Unsecured Business Lines
(STATED INCOME)
• $50K-$100K+ or More
• No Collateral required
• No financial or tax returns
• We work with damaged Credit
• No restrictions on use of funds
• Funding in 10-15 days.
• Helps build business credit.
• Not reported on personal credit.
• Use funds for Inventory.
• Real Estate Purchase.
• Use funds for Working Capital.
Traditional Business Line (FULL DOC)
• Perfect for existing business
• Minimum of 2 years in business
• Loan amounts of $50K-$100M+
• Tax returns Required
• 6 Months Recent Bank Statement
• Competitive Rates
• Get to choose your financing option
from lender list.
• Perfect for Acquisitions
• Fast Underwriting
• Choose your interest rate program.
• Commercial Biz Loans Available
Credit Consulting Services
We specialize in removing inaccurate:
• Tax Liens
• Judgments
• Charge Offs
• Collections
• Late Payments
• Repossessions
• Settlements
• Inquiry Removal
• Bankruptcies
• Medical Bills
• A FRESH START.
Equipment Financing
• 48 Hour Approval
• 100% Financing
• Fixed Monthly Payments
• Simple Documentation
• Funding From $5K- $2M
• Build Biz-Credit
• Preserve Working Capital
Typical Items Financed:
• Furniture, Fixtures, Millwork
• Computers, POS System
• Vehicles, Spa, Salon, Tools
• Heavy Machinery & etc
Merchant Cash Advances
• No restrictions on use of funds
• Does not report to credit report
• Flexible payment terms
• Is a cash advance on the business
revenue?
• Instant Approval
• 200% of your monthly income
• Funding in 3-5 days.
• No early repayment penalties
• No late fees.
• 80%+ Applications approved
• No Liens, No collateral
Purchase order Financing
• Secured by UCC-1 filing
• 65%-80% of the P.O
• Amount of line expands as
the collateral base volume
increases
• No discount fees
• Sales Vol-Min $50K
• Any business could qualify.
• Also for business who are
currently in Chapter 11 BK