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Full Documentation Loan - Commercial

This loan is typically referred to as a "Full Doc" loan where all income and assets are verified.  For commercial loans, the business income and assets, and often the majority share-holder(s) financials, are reviewed during this process.  The advantage of acquiring a Full Doc loan often provides more flexibility, better rates and terms for financing. 

Stated Income / Stated Assets (SISA)

This loan features no assets being verified. You only state your income and state your assets on the application. This program carries a slightly higher rate because the assets are not verified. The loan amount is based upon a percentage of the appraised value assessed by an approved 3rd party source and the terms of financing are based upon the guarantor(s) financial credit rating.  This type of program  typically requires commercial real estate and / or assets to be pledged as collateral. 

Stated Income Verified Assets (SIVA)

This type of financing is a loan based on your stated income, credit history, and verified liquid assets. The Verified Assets should be consistent with the income claimed.
 

SBA 7(a) Program

The SBA's 7(a) Program is the most basic and used type of loan program. Its name comes from section 7(a) of the Small Business Act, which authorizes the Agency to provide business loans to American small businesses.

Loans presented by WBS for 7(a) financing are submitted to corresponding lenders who are approved by the SBA to administer 7(a) loans and these approved lenders are called participants because they participate with the SBA in the 7(a) program. The 7(a) loans are available on a guaranty basis, which means that lenders choose to structure the loan based upon the SBA's requirements and those who apply to receive a guaranty from the SBA on a portion of the loan.    

SBA 8(a) Program

The SBA's 8(a) BD Program, named for a section of the Small Business Act, is a business development program created to help small disadvantaged businesses compete in the American economy and access the federal procurement market place.  The SBA administers two particular business assistance programs for small disadvantaged businesses (SDBs). These programs are the 8(a) Business Development Program and the Small Disadvantaged Business Certification Program. The 8(a) Program offers a broad scope of assistance to socially and economically disadvantaged firms; SDB certification strictly pertains to benefits in federal procurement. 8(a) firms automatically qualify for SDB certification.  

SBA 504 Program

The U.S. Small Business Administration's 504 Loan Program, also known as the Certified Development Company Program, provides affordable long-term, fixed-rate financing to help healthy, expanding small businesses grow. These loans are for acquiring long-term fixed assets, such as real estate, buildings, machinery and equipment or for building, modernizing, renovating or restoring facilities. 

Mezzanine Financing

This type of financing is considered to be a hybrid of debt and equity financing that is typically used to finance the expansion of existing companies.  Mezzanine financing is basically debt capital that gives the lender the rights to convert to an ownership or equity interest in the company if the loan is not paid back in time and in full. It is generally subordinated to debt provided by senior lenders such as banks and venture capital companies.  The due diligence is generally limited and quick and requires little or no collateral on the part of the borrower. This type of financing is aggressively priced with the lender seeking a generous return.

Business Line of Credit (BLOC)

A Business Line of Credit (BLOC) is a very common form of financing offered by most business banks.  It is basically like business capital on tap that can be accessed at any time up to a certain amount agreed upon, which the business qualifies to be granted.  BLOCs up to $50,000.00 my be granted based solely upon the credit reporting of the guarantor(s); larger BLOCs require more documentation on both the business and major share-holder(s) within the company.  

Bridge Financing

This method of financing may be considered as interim or short-term financing in order to acquire commercial real estate and / or sustain a business and / or investor's liquidity while arrangements are being made for permanent financing. Typically Bridge Financing may be as short as 30 days and as long as 24 months; lender and / or investor's rates and terms are aggressive.

Bridge financing may also be used by companies before their initial public offering (IPO) to obtain the necessary cash for the maintenance of the company's operations. These funds are usually arranged by the underwriting of the investment bank. As payment, the company acquiring the bridge financing will give a number of stock, at a discount of the issue price, to the underwriters that equally offsets the loan. This financing is, in essence, a forwarded payment for future sales of the new issue.

To obtain more information regarding the Right Finance Solution for your business needs, please contact a Financial Representative at 1-888-368-4911, Ext. 506 or email us at finance@wbscorps.com.    

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