Types of Business Loans

The Latin American Chamber of Commerce (LACC) loan packaging clients include start ups, early-stage companies and established businesses. The nature of the credit may be a new loan facility, a new round of financing or the re-structuring of existing debt.

The loan package is structured according to the type of loan selected and the application of loan proceeds, including:

• Commercial or industrial term loans
• Equipment financing
• Revolving lines of credit
• Commercial real estate including special purpose buildings
• Restructuring of existing long or short-term debt

Under special financing considerations, a loan product may be designed to specifically meet the borrowing needs of a particular market segment. A prime example is OWN IT!

OWN IT! A 100% Financing Commercial Real Estate Loan Program

A 100% financing commercial real estate loan program designed for business owners meeting the following considerations:

1. Are currently renting the property where the business operates
2. Are interested in owning the property
3. Lack the 30% down payment required by banks for commercial real estate loans

This loan program allows the applicants to substitute paying rent with ownership in the property. The lender finances 100% of a commercial property’s appraised value. The loan amount can go up to 120% of the appraised value if the applicant also needs to finance the closing costs.

The lender will take a first position on the real estate and the business assets, even if it needs to refinance an existing loan in the business’ assets.

Borrower’s Eligibility Requirements

Type of Properties

• General purpose: Commercial, industrial and mixed use properties
• Special purpose: Restaurants, convenient stores, gas stations, etc.

Borrower’s Financial Condition

• The applicant’s business’ financial condition must show a debt service ratio of at least 1.2 times for the past two years (existing plus proposed debt)
• The business must show stable or improving trends in both revenues and expenses
• The applicant or the business (or the two combined) must show a post transaction liquidity of at least $100,000
• The loan’s guarantor must have a FICO Score greater than 680

Occupancy

• The borrower must occupy at least 51% of the property’s square footage

Terms

• Loan Amount: $300,000 to $5 Million
• Amortization: 25 years
• Rate: Prime plus 2.25% to 2.75%, Fixed for 3-5 years, then varies in relation to Prime