We specialize in
Financing and
Consulting Services for
Small Business Owners
Great ideas take money. The old adage that “it takes money to make money” is as true today as it was when JP Morgan was building his empire. Whether its startup capital to get your idea off the ground or working capital financing to get you through slow times or long-term financing for your expansions, money can be a make or break the proposition for any businesses.
FinFlex, LLC, your financing solutions expert, will sit down with you to better understand your business and your financing needs. We will first review and analyze your financial information (financial statements, business tax returns, personal financial statements, personal tax returns, seller’s financial statements and/or tax returns), explain your current financial situation and go over your financing options.
Guaranteed Loans (SBA/ USDA)
- SBA 7a term loan of less than $50,000 with no collateral requirements.
- SBA 7a term loan for business acquisition or commercial real estate (owner occupied) purchases.
- USDA Business and Industrial (B&I) loan.
- USDA Rural Energy for America Program (REAP) loan.
- Business Revolving Lines of Credit.
- Business Equipment Term Loan.
- Commercial Real Estate Term Loan.
- Construction Loan.
- Investment 1-4 Family Property Loan
(Low-Doc and No Credit Reports)
- Multi-Family (5+ units) Bridge Loan.
Government Guaranteed Loans
Small Business Administration (SBA) Loans
Loan amounts
Most 7(a) loans have a maximum loan amount of $5 million. However, 7(a) loans made under the SBA 7(a) Small loans have maximum loan amounts of $500,000.
Maturity terms
The term of a 7(a) loan will be:
- The shortest appropriate term, depending upon the borrower's ability to repay;
- Ten years or less, unless it finances or refinances real estate or equipment with a useful life exceeding ten years.
- A maximum of 25 years, including extensions. (A portion of a loan used to acquire or improve real property may have a term of 25 years plus an additional period needed to complete the construction or improvements.).
SBA 7(a) Small Loans of $50,000 or less
For loans of $50,000 or less, SBA Lenders are NOT required to take collateral and utilize a FICO Small Business Scoring Service Score (SBSS Score) for expedited processing. The SBA 7(a) loans can be used for short- and long-term working capital, purchasing and installation of machinery and equipment, purchasing furniture, fixtures and supplies or multiple purpose loans, including any of eligible uses.
SBA 7(a) Standard Loans of $5,000,000 or less
For an SBA 7(a) Standard Loan, you'll have to meet a set of requirements laid out by the SBA, as well as any requirements from your lender in order to qualify for financing.
Typically, small businesses must meet the following criteria to qualify for an SBA 7(a) loan:
- Must be a for-profit business operating in the U.S. Certain types of businesses — such as real estate investment firms, religious organizations and gambling businesses — are not eligible.
- Must be a small business, as defined by the SBA.
- Must have, as a business owner, invested your own time and money into your business.
- Must have sought out other forms of financing before turning to an SBA loan.
- Must be able to demonstrate the need for a loan and show the business purpose for which you’ll use the funds.
- Cannot be delinquent on any existing government loans.
- Owners of 20% or more of the business must provide a personal guarantee.
U.S. Department of Agriculture (USDA)
Rural Development Loans
USDA Rural Development program is created to improve the economic health of rural communities by increasing access to business capital through loan guarantees. This enables commercial lenders to provide affordable financing for rural businesses.
Who may qualify for these guaranteed loans?
- For-profit or non-profit businesses.
- Cooperatives.
- Federally-recognized Tribes.
- Public bodies.
- Individuals engaged or proposing to engage in a business.
USDA Business & Industry (B&I) Loans
If you are an eligible business, the USDA B&I loan program may just be the product to unlock benefits that you didn’t know where possible to help your company grow.
Funds can be used for business acquisition, development, expansion, conversion, repair and modernization, the purchase of inventory, equipment, and supplies, real estate, building, and infrastructure acquisition and development, refinancing debt, and more.
With a USDA B&I loan, businesses may borrow a total maximum amount of up to $25 million (and up to $40 million for rural cooperative that process certain value-added agricultural commodities, subject to approval) with a maximum Loan-To-Value (LTV) based on available collateral of up to 80%.
The maximum term on commercial real estate is up to 30 years. For machinery and equipment, it’s either 15 years or for its useful life, whichever is less. For working capital, it’s up to 7 years.
Interest rates can be fixed or variable (or in some cases a combination of both).
USDA Rural Energy for America Program (REAP) Loan
Under the USDA Rural Development Loan program’s Rural Energy for America Program (REAP), the USDA provides guaranteed loan financing and grant funding to rural small businesses and agricultural producers for renewable energy systems and/or energy efficiency improvements.
REAP program loan limits are set at $25 million and, like B&I Loans, have maximum 30-year terms with final terms being set by the lender on a case-by-case basis, based on the useful economic life of the assets being financed and assets used as collateral, as well as the borrower’s repayment ability.
Commercial Loans
Business Revolving Lines of Credit.
A working capital business line of credit (interest only payments). Working capital is defined as “Current Assets minus Current Liabilities” so a working capital line is an “advance” on your business assets (that would eventually lead to cash flows such as inventories available for sale or accounts receivables waiting to be paid) to pay for your immediate payables (such as accounts payable, credit card payable, payrolls and etc.) and to purchase additional current assets (inventory) that will generate revenues.
- Typically, 1 year term with annual renewal required.
- Variable interest rate.
- Must demonstrate minimum 2 years of profitability and have “current assets” available as collateral.
- Loan MUST revolve – advance funds, then paydown upon collection of receivables, advance again to purchase more inventories and paydown upon sale of inventory.
- Individual owners must provide unlimited guarantees.
Business Equipment Term Loans
A term loan (monthly principal and interest payments) to purchase equipment for your business.
- 5 or 7 year fully amortizing loan secured by business assets and new equipment.
- Fixed or variable interest rate.
- Up to 70% of purchase price.
- Minimum DSC of 1.30x.
Commercial Real Estate Term Loans
A Commercial Real Estate loan can be used for construction, intermediate term and long-term financing for both owner-occupied and investment properties. We can help locate a lender for purchase, or refinance of commercial properties.
- 5-year term loan with maximum 25-year amortization schedule.
- Fixed or variable interest rate.
- Up to 80% for owner-occupied and multi-purpose commercial properties.
- Up to 70% for investment or limited-purpose commercial properties.
- Minimum DSC of 1.30x
Construction Loans
Are you in need of a construction loan to finance a new project? The construction loans available are for a new subdivision development, multi-family, single-family, townhome or mixed-use property constructions.
- Developer/Builder must be experienced.
- Up to 18 months loan term.
- Maximum 85% loan to total cost.
- Interest reserves built into loan amount.
- Variable interest rate.
- Take out permanent loan may be available.
Investment Rental Home and Muti-Family Loans
No Doc. Investment Rental Home Loans
Buying or refinancing investment rental property is a breeze with No Income Documentation Rental Loan program. The loan allows you to qualify without income documentation through tax returns, W-2’s or an y other documentation. Instead, the focus is on the property’s cash flow and its market rent (as determined by an appraisal) – meaning the difference between the property’s income PLUS payment reserves and its expenses.
Loan Terms:
1) Borrower: Must be an entity
2) Maximum Loan Amount: $10,000,000
3) Minimum Down Payment: 30%
4) Interest Rate: Fixed rate
5) Payment Amortization: Up to 30 years
6) Payment Reserves: Up to 4 years Payments to be
Reserved
7) Minimum Hybrid DSC Ratio: 1.25x
8) Guarantor: Minimum one (1) personal guarantor
required
9) No tax returns, credit reports and source of funds
“seasoning” requirements.
Multi-Family (5+ units) Bridge Loans
Multifamily refinancing is a popular option for property owners who want to lower their monthly payments, shorten the length of the loan, or take advantage of lower interest rates. However, in order to qualify, the property must have sufficient historical and current cash flows to service the debt at significantly higher interest rate (most likely doubling your existing interest rate).
For many property owners faced with insufficient cash flows to service debts (facing financial hardship), a Bridge Loan may be the best option available. Use the bridge loan to either 1) increase your rental incomes or 2) wait for interest rate to decrease to qualify for a permanent financing at favorable terms.
- Borrower must be a legal U.S. Entity
- Must have sizable equity (Current Property Value minus Loan Balance)
- Up to 2-year loan term
- Fixed or variable interest rate
- Borrower/owner must have some available cash (liquidity)
- Unlimited personal guarantees required
Recruiting and Staffing for Financial Institutions
FinFlex, LLC offers success-based compensation model and companies don’t spend a dime until the successful recruitment and hiring of a qualified candidate. We specialize in placing experienced loan processors, credit analysts, underwriters, loan closers and marketing/loan officers, especially those with Government Guaranteed lending (SBA 7a and USDA B&I), and mortgage lending experiences.
FinFlex, LLC’s management team spent over 40 years in residential, commercial and government guaranteed lending in financial institutions and private mortgage companies.
Mr. An was the President of Quintet Mortgage, a local mortgage firm with over 130 employees, generating excess of $500MM in new loan originations annually. Mr. An’s secret to success is very simple and it’s his commitment to exceptional customer service that starts with how he treats his most valuable customers, EMPLOYEES. Focus on betterment of each employee with opportunities for training, career advancement, mentoring and financial success. Mr. Kim, a Seattle native, spent more than 23 years in community banking in the Puget Sound Region in underwriting, documentation/processing, credit reviews/audits, credit administration, marketing and special assets management. Mr. Kim held the Chief Credit Officer positions at numerous commercial community banks and knows what financial institutions are looking for in new hires, especially in government guaranteed lending roles.
We are dedicated to making the job search and hiring process as smooth and painless as possible for both job seekers and employers.
Please contact us if you are in need of a new job or new employees. We are here to help!
Loan Modification for
Small Business Owners
Keeping a small business going isn’t for the faint of heart. Historically, by the time small businesses hit the five-year mark, less than half of small companies are still in business. Of those small-business owner that didn’t survive, more than half point to a lack of funds. Simply put, these small businesses don’t have enough revenues to pay employees or cover operating expenses.
It is not unusual for small business owners to take on debts whether it be for start up funds, to purchase existing business, to purchase additional inventory/equipment, to fund working capital shortages or for expansions. During the past couple of years, the cost of these debts was historically low but with the FED’s fight to lower inflation rates and rapid increases in interest rates, many of these small business owners are faced with overwhelming increases in required monthly loan payments.
Your small business is having financial issues, cash flow is tight, and you have defaulted on your business loan. What happens next and how do you work out of this situation? Your financial institution has experienced and well-versed workout specialists representing the bank. It is imperative that you, small business owner, understands loan workouts to effectively negotiate for terms that may include, among other things:
· Maturity extensions,
· Payment deferments,
· Interest rate reductions,
· Additional short-term working capital advance,
· Loan principal and/or accrued unpaid interest reductions to keep your business operating.
The bank negotiation process can be complicated and stressful, so seeking experienced former bankers to assist in the workout process is key to getting desired results.
FinFlex, LLC is represented by two former bankers with combined credit experiences of over 40 years. Our areas of expertise are in
· Consumer & Retail loans,
· Mortgage loans (both QM and Non-QM mortgage loans),
· C&I loans (Asset Based Lines, Working Capital LOC, Equipment Term loans, Business Acquisition Loans),
· Commercial Real Estate loans,
· SBA Express loans,
· SBA 7a loans, SBA 504 loans, SBA EWCP loans, and
· USDA B&I loans.
We know how loan workouts work inside a financial institution! We understand what financial institutions look for in a workout situation and as former bankers (Chief Credit Officer), we know how to negotiate on behalf of struggling small business owners that will benefit both you and the financial institution.
We specialize in Commercial and Government Guaranteed loan (SBA 7a or USDA B&I) workouts.
Meet Our Professionals
Mr. Kwi (Sunny) Kim, Founding Member, spent more than 23 years in community banking in the Puget Sound Region in underwriting, documentation/processing, reviews/audits, credit administration and special assets management.
At the age of 38, Mr. Kim became the Chief Credit Officer of Plaza Bank, a community bank in Seattle, WA, under the mentorship of Mike Clabby, Joe Ward, Dale Anderson, Mike Anderson and many more.
Furthermore, Mr. Kim has valuable experience in working with Expert Witness and Litigating Consulting firms for credit and documentation reviews of failed financial institutions.
Most recently, Mr. Kim served as the Chief Credit Officer of UniBank, a commercial bank headquartered in Lynnwood, WA.
During his banking career, credit risk, portfolio and special asset management has been his primary focus, including non-QM mortgages, commercial, real estate, profession, SBA credit, USDA B&I credit segments.
Mr. Jae An, Founding Member, is a highly qualified and accomplished mortgage and commercial lending executive offering 18+ years of experience. Mr. An is a former President of Quintet Mortgage, a local mortgage firm with over 130 employees and an annual loan production exceeding $500MM. Mr. An’s secret to success is very simple and it’s his commitment to exceptional customer service that starts with how he treats his most valuable customers, EMPLOYEES. Focus on betterment of each employee with opportunities for training, career advancement, mentoring and financial success.
Most recently, Mr. An was the SVP/PNW Regional Manager of Fidelity Lending Solutions, Inc. dba Wholesale Mortgage Banker and prior to that, Mr. An, as the SVP/Director of Mortgage Department, spearheaded the development of new mortgage department at UniBank, a commercial bank headquartered in Lynnwood, WA. Mr. An is well versed in retail lending, commercial lending, Government Guaranteed lending and mortgage lending (QM and Non-QM).
Sunny Kim
Partner
Jae An
Partner
FinFlex
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