Bridge Finance
 

Bridging loans do cover financial shortages. Usually, such loans are offered to qualified borrowers for repayment within 1 to 3 months, though in some cases can be offered up to 3 years.

Such type of loans is a vital tool when a business has a cash flow shortage or seeks to make an investment but lacks the financial resources to do so.

Generally speaking, bridge loans can be of great help to many businesses in the short-term but they always come with a higher interest rates and sufficient collateral due to their short term.

Advantages of bridge loans:

  •  Bridge loans are used by borrowers who wish to use the proceeds from a sal

  • Can be written, approved and disbursed quickly

  • Bridge loans assist in closing many real estate purchases deals and assist in initial public offering

  • Bridge loans can be turned into a regular mortgage by the same lender

Mezzanine Finance

Mezzanine financing is a financing vehicle not known well in all countries.  It is a combination of two elements, securing additional working capital and finding a business partner.

Mezzanine financing is typically used to finance the expansion of existing companies. It is similar to second mortgages, except that mezzanine loans are secured by the stock of the company and not the property.

Such financing is usually provided to the borrower very quickly and with little due diligence from the lender’s side. Mezzanine loans can be granted with little or no collateral.

Advantages of mezzanine loans:

  • Low equity requirement

  • Can be written, approved and disbursed quickly

  • Mezzanine finance can be used for acquisition and construction projects

  • Financing can be made up to 90%

Asset Based Finance
 

Asset based loans are usually offered by commercial finance companies and banks and they can be available on a revolving basis secured by a company’s assets, such as accounts receivable and inventory. Asset based loans are considered an alternative financing method similar to a traditional line of credit offered by a bank, but with fewer restrictions.

  • Advantages of asset based loans:

  • A financing vehicle suitable to manufacturers, distributors and service companies

  • Can be used to finance acquisitions or expansion

  • Suitable to borrowers with little credit, or have little income to support the repayments

  • Asset based loans are offered with lower interest rates compared with unsecured loans

  • Financing can be made up to 15 years

 

Finance Against Major Instruments

 

This unique financing option is available for well established and qualified borrowers worldwide who are able to supply bank instruments issued by top-rated commercial banks as listed in the international banking directory, The Bankers’ Almanac.

 

Transactions considered range from $20 million to $500 million. Financing will be offered with interest rate tied to the LIBOR at simple interest and not compounded interest with semi-annual payments in arrears. Financing can be granted up to 7 years or longer with a grace period up to 2 years.

Bank instruments accepted as collateral:

  • Standby Letter of Credit

  • Letter of Guarantee

Other instruments accepted as collateral:

  • Unsecured Promissory Notes of a qualified Fortune 1000 company or other major international firm

  • Sovereign Guarantees of many countries

  • Municipal/Institutional Guarantee of a large municipality, municipal agency or institution

  • Co-guarantee of Borrower’s Unsecured promissory Note issued by an accepted major bank or other acceptable guarantee-issuer

 
home page   |    about us   |    services   |    partners   |   faq   |    contacts

Copyright 2009. All rights reserved
Samer Nassar & Associates