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Jul 01
2009
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Ben Hunter, Assistant Vice President - Atlanta Commercial Lending - SunTrust Bank
The success I'm seeing in the capital markets relates to strong internal practices. For example, I was able to provide $500M LOC for working capital to an IT consulting firm recently to assist them in global ventures. While liquidity was a bit low, we were able to approve the deal due to quick collection of A/R through treasury management technology. Additionally, the firm operates with low overhead and utilizes a very solid internal expense control system. Based on the company's strategic management and use of technology for cash flow solutions, we were happy to approve.
A legal client of mine received $1.2MM to refinance his firm's building. A diversified practice to the core, they specialize in many areas of law as opposed to focusing only on the niche markets. He made it his firm's business to do business, and because of this diversified strategy, his numbers are consistent as opposed to down drastically like some of his peers. We approved the long term capital facility, and because the rate markets are very favorable, the client is saving over 300bps.
One of my CPA clients wanted to refinance his commercial building and get some cash out for improvements. We approved the $190M deal with long term structure and low rates, paying off the original lender and providing $25M in permanent working capital. The client's credit was clean, and he maintained good reserves. His practice is growing despite many small business owners closing doors and going back to work for other companies. This CPA is a smart one, too, because he has an additional office suite available for rent in his building. He provides long term leasing structures and great rates to his tenants, and the revenue generated by this unit covers the cost of the commercial note on the building and then some, virtually eliminating overhead and increasing profitability. The key to success here: cash reserves, reduction of costs, and high profitability.
Bill Holden, President - Sandy Springs Community Bank
1) Most banks have capacity issues where their loan to deposit ratio may be high. This means that a bank's lending capacity may be limited and it has to allocate credit. With that in mind, those borrowers who have a relationship with a banker (not a bank-that is a building) will have better success obtaining credit.
2) Many banks are reluctant to make real estate loans in this market because it is very difficult to value a piece of real estate. How do you know how much to advance on a loan when you can not value the collateral?
3) We are meeting the needs of our customers, particularly those seeking credit for non real estate purposes. We recently made a loan to a successful Optometrist for equipment.
Chris Burnett, President/CEO - Cornerstone Bank
In this tight credit market, some of the best opportunities for small business financing are provided through the SBA's 504 and 7-A loan programs. Recent changes to these programs have made them more attractive for both small businesses and banks. We recommend that clients seek a lending relationship with a bank that is designated as a "Preferred Lender" by the U.S. Small Business Administration. This significantly expedites the approval process and assures clients that they'll be working with professionals who understand and can successfully execute the SBA's loan programs. We've successfully closed a number of SBA guaranteed loans this year for building and equipment purchases, inventory and working capital financing and business acquisitions under very competitive rates, terms and structures. Borrowers that may have traditionally stayed away from SBA loans because of the perceived "red tape" may want to revisit these programs now, especially with conventional financing being harder to find.
Cindy Larson, Vice President - Sr. Commercial Business Lender - Wachovia / Wells Fargo
Recently approved:
Start up business with purchase of warehouse facility. Loan amount of $1,700,000 for a Cart refurbishing business. Borrower has significant experience in the industry and chose to start up his own company.
Closing:
Expansion of ophthalmologist office. Borrower has been in practice for several years and is looking ta acquire a condo unit in a medical building, make improvements, purchase inventory, purchase equipment, and obtain working capital. Loan amount of $724,000
Manufacturing business acquisition. Borrower had industry experience, bought a manufacturing business with real estate and working capital included in the loan request. Seller carried back a small note and WSBC financed remainder of project at $890,000.
Matthew Taheri, Vice President - Wachovia Wealth Management
A Dry Wall company located in Atlanta, applied for and received a $250,000 line of credit to help their cash flow during the low construction times. The loan is secured by their building.
An Atlanta chemical manufacturing company, received a $500,000 line of credit to purchase large quantities of raw chemical materials at discount. Loan is secured by the company owner's personal residence.
An accounting firm in Atlanta, received a $390,000 five year loan secured by their accounts receivables.
An Atlanta law firm received an unsecured line of credit for $250,000 to help with their cash flow.
Contact me right away for a free review of your company's situation to help expedite the growth of your company. GBergmark@b2bcfo.com
