Other Finance Programs

Corporate Bank Loans

  • Frequently called a “blanket-lien loan”
  • Because loans are backed by Federal Reserve, guidelines are stringent
  • To qualify, company must have history of success and years of profits
  • Management and customers will be scrutinized
  • Maximum loan is typically three-to-one debt-to-equity ratio (for example: to borrow $350,000, a company will need $1 million in high-quality equity)

Advantages:

  • Low cost, little scrutiny after initial funding for a year.

Disdvantages:

  • Extensive due-diligence process.
  • Difficulty increasing amount of loan once made.

Current Availability

  • Today, banks are making fewer of these type loans, and their criteria are more strict. If you qualify, Porter Capital can refer you to a reliable bank.

Bank Mortgage Loans

  • To qualify, a company must have well-maintained building and solid net income
  • Recent appraisal from certified appraiser needed
  • Typically, banks aren’t interested in loans of less than $500,000
  • Typical loan-to-value advance is 75%

Advantages:

  • Low cost, little scrutiny after initial funding.

Disdvantages:

  • Long due-diligence process.

Current Availability

  • There's always a market for loans to good income-producing properties. If you are interested, Porter Capital can refer to a reputable mortgage lender.

Bank Mortgage Loans

  • To qualify, a company must have well-maintained building and solid net income
  • Recent appraisal from certified appraiser needed
  • Typically, banks aren’t interested in loans of less than $500,000
  • Typical loan-to-value advance is 75%

Advantages:

  • Low cost, little scrutiny after initial funding.

Disdvantages:

  • Long due-diligence process.

Current Availability

  • There's always a market for loans to good income-producing properties. If you are interested, Porter Capital can refer to a reputable mortgage lender.

Bank Mortgage Loans

  • To qualify, a company must have well-maintained building and solid net income
  • Recent appraisal from certified appraiser needed
  • Typically, banks aren’t interested in loans of less than $500,000
  • Typical loan-to-value advance is 75%

Advantages:

  • Low cost, little scrutiny after initial funding.

Disdvantages:

  • Long due-diligence process.

Current Availability

  • There's always a market for loans to good income-producing properties. If you are interested, Porter Capital can refer to a reputable mortgage lender.

Asset-Based Loans

  • Refers to any corporate loan backed by solid collateral
  • Requires lower profitability than corporate bank loan, and debt-to-equity ratio can be higher as well
  • Qualified assets include accounts receivable, inventory, real estate, machinery and equipment
  • Several years in business also a plus for qualifying

Advantages:

  • Moderate cost, medium scrutiny and monitoring after initial funding.

Disdvantages:

  • Intense due-diligence process

Current Availability

  • This market has lost several key players, and currently the market is tight. Because of this lack of competition, unless you want to borrow $7.5 million or more, you will have little leverage in terms of rates and fees paid to the lender.
  • Porter Capital makes asset-based loans.

Exports Accounts-Receivable Loans

  • Financing using overseas accounts receivable as collateral.
  • Often easier to get than funding of domestic A/R because the U. S. Government maintains the ExIm Bank, which insures such accounts to promote overseas trading
  • Three years of profits are needed to qualify, and at least 50% of the product must be made in the U. S.

Advantages:

  • Moderate cost, intense scrutiny of your company and your overseas customers.

Disdvantages:

  • Intense due-diligence process

Current Availability

  • If you qualify, abundant availability
  • Porter Capital makes these loans

Supplier's Standby Letters of Credit

  • Designed to give your suppliers guarantee they will receive payment
  • Provided by only a few lenders, including Porter Capital
  • Often can result in you having more time to pay and, in turn, more working capital

Advantages:

  • Low cost
  • Medium monitoring after initial funding

Disdvantages:

  • Very few lenders offer this product
  • Need to analyze carefully and use with caution

Current Availability

  • Not widespread; even financial industry knowledge of product is limited.
  • Typically not available from traditional banks
  • Provided by Porter Capital

Import Letter of Credit Financing

  • Financing using Import Letter of Credit as collateral
  • Enables you to fill orders prior to receiving payment

Advantages:

  • Low cost
  • Quick availability of funds

Disdvantages:

  • Few, but this facility needs to be tied in with other forms of financing

Current Availability

  • Not widespread
  • Can be provided by Porter Capital

Purchase Order Financing

  • Using Purchase Orders to acquire the Letter of Credit needed to provide assurance to overseas suppliers
  • Typically provided by a P.O. Financier
  • P.O. Financier also assists with other issues including transit insurance, quality inspection, clearing customs and freight forwarding

Advantages:

  • P. O. Financiers can provide invaluable services that will ensure transaction is completed

Disdvantages:

  • Very expensive
  • Working with an experienced lender is an absolute must

Current Availability

  • There are probably no more than six purchase-order firms in the U. S., and they are very selective about who they work with
  • Porter Capital has had experience with these firms and can make a referral if needed

Venture Capital Financing

  • Funding is provided, typically interest free, to promising businesses
  • Firm investing the capital also provides advice and assistance
  • If the business succeeds, the investing firm takes an equity position in the company, usually in proportion to the amount of the original investment

Advantages:

  • Interest-free financing
  • Sound management and business advice

Disdvantages:

  • If the business succeeds, venture capital can end up being very expensive, as the investing firm can ultimately own from 25 to 65 percent of the company
  • Fees needed to actually secure venture capital can also be significantt
  • Monitoring and demands that you adhere to original business plan can be intense

Current Availability

  • Significantly reduced compared to 10 years ago, primarily because many venture capitalists suffered severe losses on investments in tech companies
  • Porter Capital has connections with several reputable venture capital firms and will make referrals for qualified candidates


Click here to receive a download of our complimentary Working Capital Guide.

This Guide includes information on business financing options and how to decide which is best for your business.

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