getting ready to secure a loan

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PREPARING FOR A LOANPart of the Complex Financial Litigation For 2014 Series

Premiere Date, May 7, 2014

PREPARING FOR A LOAN: MAY 7, 2014

FINANCIAL POISE, A DIVISION OF DAILYDAC, LLC©2014

Practical and entertaining education for business owners and executives, Accredited Investors, and their legal and

financial advisors.For more information, visit www.financialpoise.com

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DISCLAIMER: THE MATERIAL IN THIS PRESENTATION IS FOR INFORMATIONAL PURPOSES ONLY. IT SHOULD NOT BE CONSIDERED LEGAL ADVICE. YOU SHOULD CONSULT WITH AN ATTORNEY TO DETERMINE WHAT MAY BE

BEST FOR YOUR INDIVIDUAL NEEDS



http://www.financialpoise.com/

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ABOUT THIS EPISODE OF THE SERIES

• Obtaining a loan can be a lot easier if you are properly prepared and can provide the lenders the documents they need to evaluate the loan request. This webinar will discuss the various documents lenders like to see and how to prepare the loan request.



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Preparing for a Loan - Road Map

• A. Determining Borrowing Need• B. Determining Guarantor’s Risk Tolerance• C. Lining up Professionals• D. Preparing Financial Documents• E. Preparing Management Information • F. Preparing Corporate Organizational Docs• G. Shopping the Loan



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Determining Borrowing Need

• Line of Credit– Maximum Amount needed– Collateral Base

• Term Loan (Equipment, Acquisition)• Construction Loan• Capital Lease• Letter of Credit



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Determining Guarantor Risk Tolerance

• Is principal willing to provide:– Full guaranty– Partial Guaranty – Non-recourse carve-out guaranty– No guaranty

• What assets are owned by Guarantors



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LINING UP THE PROFESSIONALS

• ACCOUNTANTS• ATTORNEYS• LOAN BROKER• SURVEYORS (IF REAL ESTATE LOAN)• ARCHITECT (IF REAL ESTATE CONSTRUCTION)• GENERAL CONTRACTOR (IF CONSTRUCTION)


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Preparing Financial Statements

• Balance Sheet• Cash Flow Statement• Profit and Loss Statement• Trial Borrowing Base Certificate• Personal Financial Statements• Tax returns



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Preparing Management Information

• Bio’s of Principals• Bio’s of Officers and Key Employees • Explanations of any Negative Public

Information• Explanations of Pending Litigation



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PREPARING CORPORATE ORGANIZATIONAL DOCUMENTS

• Articles of Incorporation/Organization• By-Laws/Operating Agreement• Good Standing Certificate• Resolutions to Pledge and Borrow



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Shopping the Loan

• Loan Broker• Conventional Lender/Bank• Non-conventional/SBA


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MORE ABOUT THE FACULTY:

12FINANCIAL POISE, A DIVISION OF DAILYDAC, LLC©2014


Chris Balestrino

Chris Balestrino is a Principal at Park Place Equity, LLC. Park Place Equity (“PPE”) provides and arranges financing for small business owners and real estate investors, as well as offer strategic advice to clients operating in the early to medium stages of their business development. Most loans are typically secured by commercial real estate, equipment and other tangible business assets. PPE has closed in excess of $100,000,000 since its formation in 2007 and through its network of community banks, PPE continues to provide financing solutions to small businesses and real estate investors alike. The primary focus is government guaranteed lending; loans which require credit enhancement from the SBA, USDA, Fannie Mae, Freddie Mac and FHA. Secondary focus is the “Community Banking Platform”; this program is designed to fill the void left by the CMBS market and other lending institutions which previously relied on the secondary market to sell their loans without the benefit of a government guarantee (SBA, USDA, Fannie, etc).

MORE ABOUT THE FACULTY:



William Schwartz

Bill is a partner in the Banking & Restructuring Group of Levenfeld Pearlstein, and concentrates his practice on representing borrowers and lenders in financial services, litigation (including bankruptcy) and workouts. Bill takes a complete approach to client service. He works to achieve the results his clients want, and in doing so, he also strives to make the experience of working together a positive one. Bill recognizes the time constraints facing his client, and works to reduce the distractions often caused by focusing on the “small picture.” He believes that communicating with your attorney and boredom do not have to be synonymous. As a result, he takes a real interest in his clients and strives to consistently demonstrate that in his frequent interactions. He also represents receivers in foreclosure cases, buyers and sellers at UCC sales, buyers from assignees for the benefit of creditors, and buyers of notes and mortgages. Bill recently co-authored the chapter “Federal Court Receiverships” in the book Strategic Alternatives for Distressed Businesses (Thompson-West 2013) and an article in Buyouts Magazine entitled “Buying Distressed Assets Outside of Bankruptcy” (Thomson Reuters, June, 2010).



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