Loan Products

Working Capital Business Line of Credit

Many companies require that they have access to funds that are immediately available for a variety of reasons, and at their discretion.  Business expansion, inventory, working capital and acquisition of assets are all examples that require the availability of immediate funds.  Joseph|Scott Commercial Funding works with established companies in securing working capital lines of credit.  The line works as a revolving loan, able to be drawn upon, paid down and drawn again continuously, so that it is always available when needed.  Depending on the financial strength of the company, rates can be as low as 30-day Libor + 75bps!  Call Scott at 212-947-8877 for information regarding our new No Doc Business Line of Credit up to $250,000 for established businesses.

Bridge Loan

Short-term financing used in connections with all types of transactions in need of a quick closing. Bridge loan financing is utilized when timing is critical, and certainty of closing is imperative. The key consideration when underwriting a bridge loan is the exit strategy (i.e., sale or refinance of the property). Bridge loans typically carry a higher than average coupon rate, and generally mature in 12 months or less.  Bridge loans are also sometimes referred to as hard money loans.

Fixed Rate Loans

Fixed Rate loans are a staple of the mortgage industry; however, many opportunities exist for negotiation on mortgage lending terms, especially interest rates, loan-maturity and prepayment penalties. Leveraging our relationships with major lending institutions, Joseph Scott has the ability to negotiate the best terms possible.Fixed rate conduit loans are available in 10, 15, 20, 25 and 30 year amortizations.

Floating Rate Loans

The floating rate loans offered by our capital sources are typically indexed to LIBOR, US Treasury Bonds or WSJ Prime.  Many recent borrowers have chosen floating rate loans to take advantage of the historically low interest rates of the past few years. Floating rate loans often feature minimal or no prepayment penalties. They are particularly attractive to buyers with a two to four year financing horizon, such as acquisition of a property going though a reposition or a turnaround. Joseph Scott Financial assists its clients in assessing whether or not a floating rate loan is appropriate for their borrowing needs, both short and long term.

Hard Money

Loans provided for difficult situations that are typically short term in nature and bear greater risk then conventional loans.  Hard money loans are typically only used for investment or commercial investment properties.  Most hard money loans will carry a maximum LTV of 70% due to the lack of credit worthiness of the borrower, or other higher risk issues.

Mezzanine Loans

As one of the most innovative products to be introduced into the commercial real estate finance world, mezzanine loans offer borrowers the ability to maximize leverage while potentially reducing the cost of funds. Whether being structured as partnership debt, or preferred equity, a mezzanine loan can be an integral component for a real estate owner or developer in many diverse circumstances. It takes sophisticated structuring and innovative modeling to successfully implement the usage of mezzanine loans, and Joseph Scott excels in both.

Construction Loans

Often avoided by many lending institutions, construction loans prove to be some of the most challenging transactions. Fortunately, Joseph Scott has extensive knowledge and experience in construction lending. As a limited equity partner in a number of residential and commercial developments, Joseph Scott has first hand knowledge of what it takes to successfully complete a development project, including all aspects of the financing.

Renovation/Repositioning

A renovation loan, which is similar in nature to a construction loan, usually involves financing for the specific purpose of upgrading an existing property in order to project the desired image of a product or service to the market. Joseph Scott is able to assist borrowers in preparing the proformas and budgets for their projects prior to presenting their renovation program to the right lending source, as well as consummating the transaction with the most appropriate capital source.