![]() Commercial Lending X August 2019 Update:
Time To Reinvent Commercial LendingCommercial Lending X is your one stop source for all of your commercial financing needs. Combined we have over 50 years of commercial lending, credit management, and underwriting experience. Our team has gotten approvals for over $400 million in commercial loans over the past nine years. Let us see what we can do for you. ![]() Interest Rates - Could They Get Any Lower Ever since the Prime rate started going up December of 2015 everyone has been expecting long-term interest rates to continue to move up, which they certainly did. Although there were temporary dips lower in long term rates, in general as Prime moved up so did long-term rates. However, something happened in 2019. As worries about a potential slowdown in the economy started to materialize, and there are some early economic indications that the recovery may be slowing, an expectation that the Fed may cut the Prime Rate started to creep in. In response, long-term rates started to move sharply downward. In June of 2019 long-term rates hit a low last achieved in 2017, when Prime was 4.25%. Per the below chart, which tracks the high and low point of key Treasury Yield Curve Rates as well as Prime over the last seven years, it is clear that substantial fluctuations occur in long-term rates throughout the year based on a wide variety of factors. However, as the Prime Rate has trended upwards, long-term rates have moved up with it. Now that the Fed has cut the Prime Rate, and with expectations that future cuts could be on the way, will interest rates continue to etch downwards like they have etched up over the last seven years? The market seems to think so, which could be a benefit for commercial loan borrowers. ![]() Recent Success Stories Below are a few recent success stories to help provide more detail on the type of transactions we can get financing for at Commercial Lending X. Banquet Facility Refinance – Client was looking to refinance a banquet facility being carried by a private lender who funded acquisition so the client could start the business. We were able to provide traditional bank take-out financing for $1.85 million end loan at an attractive fixed interest rate. Equipment Financing – Client was looking to expand their heavy equipment leasing company just over one year in business. We were able to secure a guidance line of credit with a traditional bank at an attractive fixed rate for up to $3 million in equipment purchases, providing up to 90% financing on the acquisition of new and used equipment, with each acquisition being funded into an individual 5 year term loan with 6 months interest only on the front end. ![]() Loan Program Updates Multi-family 6 to 12 Unit Special Pricing Program Extended offering fixed rates starting in the low 4% range fixed for 5 years with 7 and 10-year options available, 30-year amortizations, refinances up to 80% of value and cash-out up 70% of value. Looking for stabilized properties with historical cash flow to support proposed debt service. Investment Property Portfolio Lender – National Private Lender with a portfolio product for investment real estate deals including apartments, retail, office, and select industrial, for deal sizes $2 million and greater and rates starting in the high 3% range. Non-recourse options are available.
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