Reliant Capital Funding creates value for your business; we allow you to concentrate on your business, instead of jumping around from one random bank to another, leaving trails of your credit report on every bankers desk in hopes of getting a loan approved. Not only will you waste time, but you will become overwhelmed and discouraged as time goes by. Eighty-four percent of loan applications are turned down by banks due to presentation and lack of information alone!

Working together with the borrower, our company collects all pertinent forms and information that the banks will require to review your loan. We professionally package your loan application, which includes industry studies, projections with explanations, debt ratio underwriting, and more.

We will use the contacts we already have with banks around the nation, and use our influence and experience to make sure that your deal is taken seriously and worked on in a timely manner. We submit ONE complete package to multiple banks that we’ve worked with in the past that we know can handle your loan, and within days, we can compare term sheets from all the banks, and negotiate the most suitable deal for the borrower. Remember, the banker’s job is to sell the most profitable deal for the bank, AND reduce the bank’s risk by getting as many guarantees and as much collateral as possible. Our job is to make sure you get the best possible deal available to you on the market, without offering excessive collateral and paying an inflated interest rate.

PLEASE NOTE: After reviewing the initial documents from the borrower and asking a few preliminary questions, if we feel that your loan will not be approved or that there are many more items needed to be completed by the borrower prior to being able to apply for a loan, we will NOT accept the assignment. Our company is fully compensated when our clients successfully close on a loan, and if we feel that your loan will not make it to the closing table, we will be honest and upfront about it. We will explain why, and if applicable, what changes need to be made in order for reconsideration.

1. After we receive all the information from borrowers, we issue a term sheet within 10 business days.

2. Following the agreement on terms, an Issue of Commitment Letter will be sent from the lender within 10 business days.

3. Closing of the loan will happen within the next 25 Business days.

4. In conclusion, the loan can be closed within 30 - 45 days.

After the initial interview and review of the package, our team will determine if we believe a bank will provide the client with a loan. (If we don’t think this will happen, we will NOT agree to representing the client, since we are fully compensated only if a loan closes, and it would not make sense to move forward at that time).

Reliant Capital Funding will review the initial loan request, tax returns, and personal financials submitted by the borrower. If we feel the loan is attainable, a Client-Agent Agreement must be signed by the borrower, and a $750.00 non refundable packaging fee is due.

Apart from the initial non-refundable packaging fee, there are no upfront fees. Compensation is based on a percentage of the loan amount requested, and can vary depending on the loan size and type (usually 0.5% - 2%). Payment is not due until a commitment letter is accepted by the borrower and the deal successfully closes.

Lender fees for underwriting, loan packaging, origination fees, appraisal, environmental audit, survey or other third party reports or requirements may apply and are typically paid directly to the lender. If the financing involves an SBA (Small Business Administration) 7A or 504 loan, there will be a fee paid to the SBA at closing of the loan.

Conventional loans are financed directly by the bank, without a guarantee from the SBA. With these loans, the banks take more risk in financing a commercial property; if the loan defaults, they are responsible for 100% of the loss.

Because the banks do not receive a guarantee from the SBA, most conventional loans are only offered to those businesses that have strong past financials. The business owners must be experienced and must have a track record of success. Rates do not vary much for conventional loans, and are often pegged to the 5 year or 10 year Treasury Note.

Conventional loans require 20-25% down payment, and have a shorter amortization term than SBA loans.

SBA loans can be attained through pro-forma (projections), and are the perfect solution for new businesses and/or buyers without strong experience. The payout is usually longer than conventional, and the banks do not have to know the borrower on a personal banking level to be comfortable with providing them financing, since the SBA will be guaranteeing 75% of the loan.

1) Borrower contacts Reliant Capital Funding and describes the loan requirements

2) After borrower answers a few questions, Reliant will assess the loan and write-up a list of documents that will be required for basic underwriting. At this point, borrower will sign Client-Agent Agreement.

3) Once borrower supplies basic documents to Reliant, Reliant will begin basic underwriting and ask borrower to submit additional documents (tax returns, personal financial statements, credit authorization forms, etc).

4) Reliant will being creating a package, starting with the overall loan request, industry outlook, and debt/leverage ratios.

5) Once the entire package is created, Reliant will submit the package to multiple banks that we’ve worked with in the past and we know can get the deals done.

6) Within 5 days of submission, the banks will send us term sheets- this document states the basic structure of the loan, the down payment, term, interest rate, and necessary collateral (if applicable).

7) Reliant and the borrower will review the terms provided by the bank, negotiate the best offer and most suitable bank, and the borrower will sign the term sheet and the bank will begin final underwriting.

8) During final underwriting, the banks may ask additional questions, most of which we can answer directly. After about 5-7 days, the bank will issue a commitment letter. This letter is a promise from the bank to provide financing as per the terms described therein- most likely subject to an appraisal if there is real estate involved.

9) From here on, the bank’s attorney will contact the borrower’s attorney and will provide him with a checklist of items to be done prior to closing

10) Once the items are completed, the banks will set a closing date, and the loan proceeds will be disbursed to the borrower.

Steps 1-5 can take up to 7 days, depending on how quickly the borrower can provide Reliant with the requested documents.

Steps 6-7 will take about 5 days.

Step 8 will take about 5-7 days.

Once commitment is issued, the SBA will take 10-14 days to approve the loan application. If there is real estate involved, the appraisal will take 2-3 weeks. If time is of the essence, the appraisal can be ordered in advance.

The total time for a deal to close is 30-45 days. If there is a liquor license transfer involved, the time it takes the transfer the license will also need to be considered.

What is a difficult loan?
A “difficult loan” can be described as when the borrower or business…

1) …is understating profit on tax returns:
Sometimes business owners state their actual income, but inflate their expenses in an effort to avoid paying income taxes. We know the commonplace tax strategies that self-employed borrowers, along with business owners, use to mitigate their income tax. These strategies can often save money in the short run, but when trying to obtain financing, they can be detrimental. In this case, our team will “recast” your personal and business tax returns, showing the bank that some of the expenses and deductions made were simply part of a tax strategy used by the borrower/business. Some banks will be more lenient than others- you leave the convincing to us!

2) …is understating sales/revenues on tax returns:
Though completely illegal, some business owners understate their revenues on their tax returns, which reduce the cash flow on paper, and in effect portrays to the bank that there is not enough income to pay off a proposed debt. It may be obvious in real life that the business can cover debt payments, but banks cannot rely on the borrower’s word that this is occurring. Reliant will explain this to the bank, and create projections that include the real revenue/sales figures that the business is currently experiencing, along with explanations on how the business will jump so rapidly, in not so many words!

3) …only has 10% or 15% down payment available to purchase
There are often times when a borrower wants to purchase a business, but cannot afford a 20 or 25% down payment. Sometimes, 10-15% wills suffice, and the loan will not be “difficult” in the first place. However, most banks will look for 20% capital injection into the business- the more money the borrower has invested in the business, the more incentive he has to make sure the business runs well and pays the loan payments- this reduces the risk of the bank. There are creative ways that we can negotiate with the bank, using other business income, home/business collateral and other methods to show the bank that though your down payment for the deal is low, you have enough global income and collateral to justify the level of risk the bank will be taking.

A bank's appetite for risk varies:
Banks have a limited appetite for financing small-balance commercial loans which do not meet their lending standards. They prefer to invest in low-risk properties that have strong cash flow and enough collateral to secure 100% of the debt.

Reliant Capital Funding understands that different banks have different underwriting standards, and at different times in the year, their appetite for risk could fluctuate- it either grows or shrinks according to the credit market. We will use our knowledge of the markets and our relationships with the banks to you advantage, especially when dealing with “difficult loans”

Learn more on how we handle difficult loans?

Click here to visit our loan types page.