For helping a client refinance into a SBA and USDA B&I loans, we do not charge percentage success fees because SBA and USDA B&I lenders are willing to compensate us for bringing them a borrower. For helping a client refinance into a conventional commercial loan (non-SBA or non-USDA B&I loans) some lenders compensate us, and some don’t pay us. Even when a lender doesn’t pay us, there is real value in the service we provide. For example:
- It is highly likely that we will secure better loan terms than you could find on your own, therefore saving you far more money over the life of the loan than the one percent (1%) fee you would pay us for a conventional commercial loan.
- For SBA and USDA B&I loans, the fact that a lender pays us a success fee does not increase the interest rate that is charged to the borrower. Most SBA and USDA B&I lenders make the loan to the borrower, and then sell the loan on the secondary market to investors within a few months. When a SBA lender sells a 25 year loan, they often sell it for 9% to 10% more than the loan amount. For example, if the SBA guarantee portion is $1,000,000, the lender will sell the guaranteed portion of the loan for $1,090,000 to $1,100,000. If a SBA lender is able to lend out the same $1,000,000 three times in a year, they will have made $270,000 to $300,000! This is why SBA and USDA B&I lenders gladly pay us referral fees.
- Your time is valuable. Let us help you manage the maze of getting a SBA, conventional, or USDA B&I loan. We can help you avoid lenders and banks who will waste your time, or could ultimately cost you more money because delays in funding causes a fixed rate loan to be delayed so long that the Prime Interest Rate increases again!
If we do charge a one (1%) percent success fee on a conventional commercial loan, it is both reasonable and worth it. By helping you secure lower interest rates, we create future wealth for childcare center borrowers. A lifetime of hard work deserves nothing less. That’s why we help finance childcare center owners and change their future net worths.
Nationwide, to obtain help financing your childcare center, call us…
We know Financing Childcare Centers!