Investment Loans

Texas Mortgage and Home Loans offers several different types of investment loans.

Asset Loans: Good candidates for an asset-based loan have tangible or financeable assets that can be used as collateral, such as accounts receivable, inventory, equipment and real estate. These companies may have high leverage ratios, as measured by debt to equity, typically over 5 to 1, or may be marginally profitable companies, companies with a recent history of losses, or with inconsistent cash flow. But since the asset-based lender focuses on collateral, the borrower's eligibility for loan qualification is determined from an evaluation of the quality, liquidity, and sufficiency of the borrower's eligible assets. The lender analyzes each asset class to determine its net realizable value in a liquidation situation. It then uses this information to exclude certain assets from financing and set maximum advance rates. However, if it is determined through this analysis that the lender is unable to reconcile the quality, liquidity, and sufficiency of the assets that it is proposing to finance, an asset-based loan is not appropriate.

The primary difference between commercial banks and asset-based lenders is where they each look first for repayment: The bank looks to cash flow for repayment first, then collateral; while the asset-based lender looks to collateral first. Since banks underwrite cash flow as their primary repayment source, they typically require less collateral controls and monitoring but more financial covenants. For companies that are "asset heavy," an asset-based credit facility may be able to make more funds available because the loan is not based strictly on the anticipated levels of cash flow. Additionally, the structure often requires fewer covenants, thereby providing more flexibility for many borrowers.

Business Loans: Every business has five major components necessary to operate. These are personnel, equipment, housing, products and services, and last but most vital, is capital. It takes capital to get the other four. Business owners often fear banks and commercial finance companies. This fear has its foundation in a lack of lender knowledge. A Business Finance Consultant knows the ways of these lenders and has the contacts to secure financing for virtually any type of business.

The deregulation of the banking industry has made new choices available that never existed before. One of these is the availability of money through non-traditional lending sources.

The types of business loans vary to your specific business needs. Here are just a few of the loans that can be arranged by a Business Finance Consultant.

If you are considering a purchase or construction of commercial real estate, we can offer you up to 90% financing whether it's owner/user or strictly an investment. We have access to some of the most aggressive programs in the industry and with loan terms up to 25 years, you'll be surprised at how easy owning commercial real estate can be.

If you are planning to start a business, your best opportunity to obtain financing may be the assistance offered by a Business Finance Consultant. Through their network they have provided capital for hundreds of start up businesses nationwide.

A line of credit can be one of the most useful financial tools for a small business. A Business Finance Consultant can help you determine if this is the right transaction for your business. These experts will guide you through the transaction every step of the way.

If you are considering the purchase of a franchise business, a Business Finance Consultant can help. Whether it is a restaurant, retail or service related business, a Business Finance Consultant can help you achieve the dream of owning your own business.

A Business Finance Consultant can give your business access to all of these types of financing and more. With one phone call you can have dozens of lending sources competing for your loan. Once you have experienced the high level of customer service, competitive pricing and wide selection of financing options, you will understand why many business owners view Business Finance Consultants as their most important asset.

Line of Credit: To finance short-term working capital needs, such as accounts receivable and inventory, we can arrange for a line of credit. With a line of credit, your business can borrow funds (up to a pre-approved limit), repay the balance, and then borrow again as needed.

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