CPL views a commercial loan as a three-legged stool.

  1. The Collateral
  2. The Borrower
  3. The Business Enterprise

We look at; 1>the appraised value of the collateral, 2>the financial strength and experience of the borrower, 3> the ability of the business enterprise to repay the loan. If one of the three legs is not as strong as we feel it should be, then the other two legs must be stronger, i.e. In the case of a start up business where there is no historical track record, we will look at the expertise of the borrower and the value of the collateral. If we feel that the borrower has good experience and can produce solid projections based on a sound business plan, quite often we can provide the financing that is needed.

How The Loan Process Works

1. Three year's financials. The first step in having your loan request considered is to submit to CPL the past three year's financials on the business or property in question. From this we can normally tell you the amount, terms and interest rate of the loan we feel that we can secure for you.

2. Loan Placement Agreement (LPA). If the loan amount and terms we quote are acceptable and you elect to go forward, CPL will prepare for you a Loan Placement Agreement (LPA). This is the agreement in which you engage the services of CPL. We must have this to move forward with your loan request. You will also need to sign a credit release authorization.

3. Underwriting. Once the LPA is executed and a credit check is obtained and reviewed, the borrower must supply the normal information any lender needs to underwrite the loan request. The information we will need is as follows:

Complete financials on the business for the past 3 years
3 years tax returns on all principals and any corporate returns
A signed and dated financial statement on all principals
Resumes of all principals
Photographs of the business or property
A business plan for start up or turn around situations
An appraisal from an acceptable MIA appraiser

4. Loan Commitment. Once the above information is received, the loan package will be underwritten and prepared by CPL. This process usually takes 3-5 days once we have received the information we need. We then submit the loan package to the loan committee for approval; if the loan is approved, a loan commitment is normally issued within a week.

5. Closing. A closing attorney is engaged and a closing is scheduled. This process normally takes 2-4 weeks.

How long will it take to get my loan?

This is the question that everyone asks. The length of time the entire loan process takes is 90% up to the borrower and how responsive the borrower is in supplying the necessary information. All loans are different, depending on the complexity of the situation, but we can normally have a commitment within 2-4 weeks from the time we get the needed information. Once a commitment is obtained, it normally takes another 2-4 weeks to get the loan closed.