Bridge Loan Programs
Alliance Business Capital will be acting as a Commercial Loan Broker in most instances regarding a Bridge Loan on Automotive Related Properties including Gas Stations. We have worked hard to develop relationships with 2-3 reputable bridge lenders who will consider loans to Automotive related properties.
Please note that a bridge loan is a temporary solution and in most cases you will need 35 to 40% equity in the property to qualify for a bridge loan. Below are some of the bridge loan criteria offered through our lending partners.
Bridge Loan General Guidelines
|Loan Amounts:||$1 Million - $40 Million
Higher loan amounts are possible on a case by case basis
|Loan Purpose:||Transitional, value add and event driven|
|Terms:||Up to a maximum of 3 years with typical terms of 2 years|
|Leverage:||65% Maximum on Auto related properties.
Most deals fall in the 60% ltv and less range
|Recourse:||Non-recourse except for "bad boy" carveouts; further guarantees may be required on a case-by-case basis|
|Prepayment:||Freely pre-payable. Minimum interest may apply|
|Debt Service Coverage:||None, Partial or Non-Cash Flowing|
|Amortization:||Typically Interest Only
Amortization structured on a case-by case basis
|Origination Fees:||Alliance - 1-3%
Lender - 0-2%
|Due Diligence Deposit:||Upon acceptance of terms a deposit directly with the lender for due diligence is typically required to cover any third party reports. In some instances the lender will require you to pay the third party report provider directly|
|Alliance Engagement Fee:||Alliance typically has an engagement fee on bridge loans of $1500 - $2500 depending on deal complexity|