Liquidity for Banks

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Most banks can package and sell commercial mortgage portfolios, turning notes into cash. In this difficult market, are options available for less-desirable transactions?Portfolio buyers must choose only the best scenarios in this market. Even reliable, paying customers feel the effects of the economic downturn, where sales may be off by as much as 50% in some industries. These great customers are still around, even if regulators have identified them as a “risky loan.”

Let’s look at a creative way to “bridge the gap,” while satisfying borrowers and working toward economic recovery. If you have any long-term commercial mortgages due in 2010, you will undoubtedly face tough conversations over reduced sales volumes, negative earnings, and lower market values on the subject properties. Alliance Commercial Credit can reduce bank exposure, allowing it to maintain its positive customer relationships. We finance up to 65% LTV in a first position on both owner-occupied and investor-property types. If there is a shortfall, the bank can remain in a second position as long as the combined loan-to-value is less than 90%. This option can improve the bank’s liquidity, as well as greatly reduce exposure on riskier credit.

Bridge financing is an ideal short-term solution. When customer financials improve and/or the market improves, the bank can rewrite and retain long-term customer relationships. This bridge loan option can also reduce a customer’s monthly expense since it is structured as interest only (IO) for up to three-year terms. This makes refinancing simple and cost effective.

Please call with scenarios! The bank can access the cash it needs and still keep the customer relationship while we all wait for the economy to stabilize.

I look forward to working with you, and wish you a successful 2010.

Sincerely,
Suzy Oubre
Principal, Alliance Commercial Credit Group
My direct line is 360-225-7407 or toll free at 877-594-9423.
soubre@alliancecomcredit.com
www.alliancecomcredit.com

Please Read…this could really help your customers.



Know a borrower with a great commercial real estate opportunity who doesn’t have enough for a down payment? Alliance lends using current appraisal FMVs and not just purchasing prices.
Know a borrower who wants to buy commercial property, but has poor global cash flow? Alliance uses subject property cash flow as standalone as long as there are good leases/tenants.
If you have owner-occupant loans due, but can’t refinance the customer because of poor financial performance due to the economy, Alliance can help!
We provide bridge financing on commercial properties for owner occupants and investor properties with no profitability from the operating company, poor performance, or tax delinquencies!
We restructure debt, pay off credit cards, taxing authorities, and valuable vendors. With a 65% LTV or less and CLTVs up to 90%, we can help consolidate your debt.
Alliance focuses on strong equity positions to work through issues that prevent your loan renewal. Find a program that fits your needs by making your first call to Alliance: 877.594.9423

Contact:Suzy Oubre877.594.9423soubre@alliancecomcredit.com

Merry Christmas

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How healthy is your bank?

Look at this...finally a site that makes it easy to see.

http://banktracker.investigativereportingworkshop.org/banks/washington/

http://banktracker.investigativereportingworkshop.org/banks/oregon/

Quoted in Portland Biz Journal

The same credit crunch that’s making it so hard for businesses to obtain bank loans is striking alternative lenders, further limiting companies’ options for gaining working capital.Businesses that have relied before on asset-based lending — in which the loan is secured by collateral such as inventory, equipment or accounts receivable — or those that would like to explore the possibilities, may find such loans in limited supply. That may be especially vexing now, as spring is often a time for renewing bank lines of credit.Nonbank lenders specializing in asset-based lending— particularly those targeting small-to-medium businesses and entrepreneurs — are having a hard time getting capital to keep making loans, said Andrej Suskavcevic, CEO of the New York-based Commercial Finance Association.“In the fourth quarter of 2008, the credit markets imploded,” Suskavcevic said. “Banks began limiting their lending opportunities and shutting down credit availability to businesses.”That drove more borrowers to asset-banked lenders, just as some of those lenders found that their own credit limits were being squeezed.With less capital to lend, asset-based lending declined 1.9 percent from the third to the fourth quarter of 2008, according to a survey by the association. “The only reason we are not working with more businesses is that we, too, are limited by the credit situation, since we leverage our equity with bank debt,” said Len Ludwig, CEO of Vencore Capital in Lake Oswego, an alternative lender that offers financing, including equipment loans, to borrowers nationwide.“We have a limit on the amount of bank debt we can get today,” Ludwig said. “It’s very frustrating for us, because we can’t generate more loans.”Unable to take on every potential customer that meets the underwriting requirements, Vencore has become more selective, Ludwig said.“There are companies that in normal times would have access to credit and debt from a bank,” he said. “They, for the most part, are more advanced, more mature companies, and are now turning to us.”Meanwhile, companies that normally turn first to Vencore might not be able to obtain loans, Ludwig said.Businesses that may need credit soon should start investigating their options, especially if they are counting on renewing an existing line of credit, said Suzy Oubre, owner of Alliance Commercial Credit Group in Vancouver.“Most lines of credit are renewed every year,” with a significant share coming up between April 15 and the end of June, Oubre said. “This year I anticipate that there will be a lot of people axed out.”Over the past month Oubre has seen a flurry of interest in asset-backed lending, but borrowers often balk when they realize the higher costs of these loans.A competitive annual rate on a $3 million asset-backed loan might be 12 percent or higher, she said. A $750,000 loan could cost 15 percent to 16 percent.“People believe they deserve better,” Oubre said. “They’re never going to pay the higher cost of financing if they don’t have to, so they’re hitting up all the banks. But this may be all that’s available to them.”For riskier business borrowers, asset-backed lending may not be available for several months, because of the tighter credit markets these financiers face, Suskavcevic said.“I anticipate that you’ll see an increase in asset-based lending in the second quarter, as credit markets open up,” he said. “It’s going to allow the lender base to help get the economy back on its feet.”Ludwig, who believes a turnaround may take longer to occur, urges businesses to take extra care with their finances until credit loosens up.“Smaller companies need to figure out a way to be cash-flow positive, and keep potential lenders updated about their progress,” Ludwig said “That way they’ll be at the front of the queue when the dam bursts.”

Happy Tuesday

A break from work.... this is really sweet.

Our Interest Rates are Hot This Summer! www.alliancecomcredit.com
Spring is almost over and summer is ready to step in. Temperatures are on the rise and people everywhere are anxious to get out and about and enjoy the summer heat. The financial markets, however, still remain slow to warm up. Many of my clients are seeing their sales drop by 20-25%, making it difficult for them to complete loan renewals. Despite the seemingly frigid lending climate, you can still provide options to your clients, enabling you to retain customer deposits and come out on top. Even if your clients cannot be renewed for their credit line, or if they are unable to obtain financing for their commercial real estate loans that are coming due, they still have options available to them in the form of alternative lenders. By helping them into financing with one of these lenders, you are creating a win-win situation for everyone. You are avoiding becoming the "bad guy" for turning down their loan, and you are providing them with reliable bridge financing options until they are once again able to obtain traditional financing. I can work with you to help warm your client up to the idea of alternative lending. I am happy to make a joint call to discuss options, if you feel it would be helpful in preserving the deposit portion of the relationship. Often times customers are reluctant to embrace alternative lending due to the high cost Interest rates usually hover around 12-13% or higher, and that can be a difficult pill to swallow for someone who is already struggling financially. I am pleased to announce that I have drastically reduced rates on my private money products, starting at just 8.85%! With rates this low, you are able to present your clients with options that are comparable to bank loans cost-wise, but offer the speed, convenience and flexibility of hard money loans!Make me your first call when you have to say "NO" to a customer. Whether it's a prospect that you had hoped to help, or an existing relationship you would like to preserve, your customers still need banking and cash management services. If you know that you can't take care of their financing or loan request, and I have an option that will work, let's call on the customer together.

Call me anytime with scenarios; you never know what solutions I might have.

My toll free number is 1-877-594-9423.Take care, Suzy Oubre