CORFinancial Corp understands the cash-flow pressures that small to mid-sized businesses face every day.
With our depth of resources, we provide all our clients with quality funding solutions and a hands-on approach through the entire approval process.
We take time to get to know our clients, understand their borrowing needs and what their short-term/long-term objectives are; this helps borrowers to alleviate the stresses associated with the loan application process. Once a loan is approved and funds are advanced,
we don’t just move on to other clients, our focus is then to continue providing our expertise to assist clients with their future funding needs which could include additional financing or preparing them to apply for conventional banking with more appealing rates and terms. While we focus on loans of $100,000 to $10,000,000 we have the capability to syndicate larger loans up to $50,000,000. Credit is not a major factor in determining an approval; we provide practical, flexible & creative solutions to each client based on assets, enterprise value & borrowing needs. Here are the funding solutions that we can provide.
Working Capital Financing
Working Capital Financing is a business loan that is used to finance a company's everyday operations. These loans are typically used to provide the capital required to cover a company's short-term operational needs. The loan is usually secured with collateral assets such as real estate, inventory or accounts receivables.
Bridge Loan Financing
A Bridge Loan is a short-term loan used until a person or company secures permanent financing. It allows the borrower to meet current obligations by providing immediate cash flow. Bridge loans are short term, up to one year, usually with high interest rates, and are secured with collateral assets such as real estate, inventory or accounts receivables.
Accounts Receivable Financing
Accounts Receivable (AR) Financing is a type of financing agreement where a company receives capital related to a portion of its accounts receivables owing. Accounts Receivables are assets equal to the outstanding balances of invoices billed to customers but not yet paid. AR is reported on a company’s balance sheet as an asset, usually with invoice payment required within one year. The process of AR financing is often known as factoring.
Purchase Order Financing
Purchase Order (PO) Financing is a short-term commercial loan that provides a business with the capital to pay suppliers upfront to produce purchase orders for customers. PO financing is designed for new and growing businesses such as manufacturers, distributors, wholesaler/resellers & exporters/importers that need to produce and deliver large orders. The loan is usually secured by the customer purchase order as the collateral asset. Typically, once an order is delivered the PO financing then gets turned into AR financing and the loan is paid down when the customer pays their invoice.
Equipment Financing is a loan provided to company’s for the purpose of acquiring equipment to operate their business. This type of financing can also be used to refinance a business using the existing equipment as the collateral asset to secure the loan. The financing is secured using the new or existing equipment as the collateral asset along with corporate and personal guarantees from the company and all owners.
Commercial Real Estate Financing
Commercial Real Estate Financing is used for the purchase or refinancing of existing commercial & industrial properties. The financing is usually put in place by way of a commercial mortgage with a registered commercial mortgage agent or broker. The types of properties that are financed with this type of financing are mixed-use retail plazas & big box retail stores, restaurants, gas stations, office buildings, office condos, commercial office plazas and complexes, industrial buildings, warehouses and multi-residential apartment buildings/condos. The refinancing of existing properties can also be approved for owners who are looking to purchase additional properties to add to their portfolio. The financing is secured using the land as the collateral asset, assignment of tenant rents along with corporate and personal guarantees from the company and all owners.
Land Development Financing
Land Development Financing is usually obtained to purchase raw or undeveloped land that builders/developers want to make construction-ready. The financing is usually put in place by way of a mortgage with a registered commercial mortgage agent or broker. This type of financing is used to service the land, build roads and to install sewer, water & power lines to the site. Once the land is developed it can be subdivided and sold as parcels for both residential and commercial use. The financing is secured using the land as the collateral asset along with corporate and personal guarantees from the company and all owners.
Construction Financing is usually obtained by a builder/developer to complete the construction of a development project. Construction financing is put in place once the developer has obtained all the permits and approvals such as Site Plan Approval (SPA) from the city/municipality, zoning permits and building permits. This type of financing is usually on the larger scale and used to take out existing financing such as land development financing previously put in place to purchase the land. This financing is secured using the land/property as the collateral asset along with corporate and personal guarantees from the company and all owners.
Mezzanine Financing is a form of funding that is positioned partway between the equity and debt financings used by a business. It is designed to provide cash to an existing business that requires the funds to grow, or for a leveraged buyout, or a corporate restructuring. Also known as Mezz Debt, this financing can be converted to equity if the debt is not repaid by the borrowers and business.
Debtor-In-Possession (DIP) Financing
Debtor-In-Possession (DIP) Financing is a special form of financing provided for companies in financial trouble, typically during restructuring under corporate bankruptcy law. Usually, this debt is considered senior to all other debt, equity, and any other securities issued by a company. DIP financing may be used to keep a business operating until it can be sold as a going concern, if this is likely to provide a greater return to creditors than liquidating the company’s assets and closing down. It may also give businesses in financial trouble a new start.
Automotive Lease Portfolio Financing (Securitization)
Automotive Lease Portfolio Financing is also known as Securitization. This type of financing is done by taking a portion or all of an existing portfolio of automotive leases or loans and leveraging the related cash flows to generate a large pool of cash for the leasing company to allow it to write new business and increase revenue.
Tech Start-Up Financing
Tech Start-Up Financing is put in place for new companies or young companies (in business for less than 2 years) who have developed or are developing innovative technology for the future. The investment is in the team of individuals and their ability to complete the development and deliver a finished product that can generate revenue and eventually take out the initial funding. Investors/lenders may also take an equity stake in the business and become part of the management team or put their own people in place to assist with the company’s operational needs. The financing is usually secured with personal assets by the business owners along with corporate and personal guarantees.