BUSINESS LOANS
Equipment Leases and Loans
We have multiple sources for equipment loans and leases and can provide you without competitive rates and terms. Our lenders offer financing for an array of equipment and machinery . Terms will vary based on the liquidity of the equipment and the financials of the company .
Business Term Loans and Lines of Credit
We have lenders that offer fully amortized term loans and lines of credit for a variety of purposes with excellent terms. These loans are available for businesses that have a track record and as such, the terms are more aggressive.
Inventory and AR Financing
Early stage and growing companies frequently run short on cash. Improving cash flow by financing inventory or accounts receivable can be just what the company needs. While this type of financing can be more expensive, this can take only a matter of hours to put in place.
Transaction Guidelines
| Minimum Loan Amount | $100,000 |
| Maximum Loan Amount: | No Maximum |
| Acceptable Loan Purposes: | Purchase of equipment and machinery |
| Downpayment/Equity Injection: | Usually 1st month payment, last month payment and security deposit |
| Company Requirements: | Must have been in business for a period of time or a larger downpayment will be required |
| Personal Guarantees | Required unless company has significant balance sheet |
| Minimum Credit Scores of Guarantors: | Varies by lender but generally above 640/ We do have sources that will allow lower credit scores |
| Documentation Requirements: (May require more on specific transactions) | Application |
| Company financials | |
| Guarantor financials (If Applicable) | |
| Equipment purchase order (Descriptions) | |
| Collateral Requirements: | 1st Lien on the purchased equipment/machinery |
| Minimum Debt Service Coverage | 1.25 or greater |
| Loan/Lease Structure: | Lease can be structured with $1 buyout at end or structured to pay economic value of equipment financed |
| Interest Rate Structures: | Fixed rate of interest |
| Payment Structure/Payment Penalties | Monthly payments/ If prepaid, in most cases will pay off all monthly payments or prepay at a slight discount to total payments |
| Amortization Period: | From 5-10 years based on life of equipment |
| Time to Close: | 20-45 days |
| Other Notes: | Specialty equipment may require additional downpayment |
Transaction Guidelines
| Minimum Loan Amount | $100,000 |
| Maximum Loan Amount: | $10,000,000 |
| Acceptable Loan Purposes: | Expansion, growth, improve cash flow |
| Downpayment/Equity Injection: | Generally need to be secured with 70-75% Loan-to-collateral |
| Company Requirements: | Company needs to be established with a track record |
| Personal Guarantees | Required unless company has significant balance sheet |
| Minimum Credit Scores of Guarantors: | Varies by lender but generally above 640/ We do have sources that will allow lower credit scores |
| Documentation Requirements: (May require more on specific transactions) | Application |
| Business Plan or Executive Summary | |
| Company financials | |
| Pro-forma financials for at least next 12 months | |
| Collateral Requirements: | Need tangible collateral with Loan-to-value of 70-75% |
| Minimum Debt Service Coverage | 1.50/ possibly slightly less |
| Loan/Lease Structure: | Structured as loan |
| Interest Rate Structures: | Term Loan-Fully Amortizing Line of Credit or Interest Only Monthly Payments |
| Payment Structure/Payment Penalties | Monthly Payments/ Generally No Prepayment Penalties |
| Amortization Period: | Term Loans-36-120 months |
| Time to Close: | 20-45 days |
| Other Notes: | To qualify , generally must have a business where the company purchases product or raw materials, and then resells or produces final product for sale |
Transaction Guidelines
| Minimum Loan Amount | $50,000 |
| Maximum Loan Amount: | $500,000 (Possibly higher on case by case basis) |
| Acceptable Loan Purposes: | Improve cash flow |
| Downpayment/Equity Injection: | NA |
| Company Requirements: | Must have been in business for 3 months for loans under $150K and 6 months for loans over $150K |
| Personal Guarantees | Required |
| Minimum Credit Scores of Guarantors: | Generally 620 or above / FICO may impact the pricing of the loan |
| Documentation Requirements: (May require more on specific transactions) | Application |
| Last 3 months business bank accounts and merchants services statements (6 months for loans over $150K) | |
| Valid drivers license and voided check | |
| Business tax returns may be required | |
| Collateral Requirements: | Blanket UCC filed |
| Minimum Debt Service Coverage | NA |
| Loan/Lease Structure: | These are “factored” loans where the repayment is a multiple or factor of the amount borrowed. |
| Interest Rate Structures: | Not structured as simple interest. (Rates will range from 15%-50%) |
| Payment Structure/Payment Penalties | Daily or weekly payments/ If prepaid, in most cases will pay off all monthly payments or prepay at a slight discount to total payments |
| Amortization Period: | Generally a maximum of 12 months |
| Time to Close: | 48-96 hours |
| Other Notes: | These loans are not for everyone but they can provide immediate cash |
Our Process
The process is the same regardless of the loan type.
Complete and Submit WNC Application– Complete the application that is available here in the site and submit.
Eligibility Determination– One we obtain the application, we will determine what options are available and the lenders that the application qualifies for. If warranted we will counsel the applicant on how the transaction might work.
Lender Application and Document Checklist– Once we have reviewed the application, we send out the lender application and a checklist of documents required. In some cases, we submit to multiple lenders to obtain the best terms possible.
Terms Sheet Issuance and Acceptance– We will present the terms for acceptance. This will include closing conditions.
Clear to Close/Closing of Loan – Each Lender is different but at some point, each lender will take charge of the loan and communicate directly with the applicant.
(WNC and its referral partners are paid for our services by the Lenders)