views a commercial loan as a three-legged stool.
- The Collateral
- The Borrower
- 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
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.
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
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
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 closing attorney is engaged and a closing is scheduled. This process
normally takes 2-4 weeks.
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.