When a Florida-based landscaper applied to refinance his high rate debt and purchase his property, he was was in line to save tens of thousands of dollars per month. So he was understandably puzzled that, while the property had been on the market for months, he had been declined by multiple banks and unable to close the deal. The landscaper turned to Radix very concerned that another borrower might purchase the property and he would have to move to a new location.
The major issue with this loan was simple. The borrower needed a total of $2M to purchase the property, refinance his debt and obtain working capital to grow his business. Unfortunately, his collateral was minimal: the value of the property he hoped to buy was only $1M and the total loan to value ratio when calculating all collateral was 148%. Most SBA lenders cap their financing at 80 or 90%. Luckily for the borrower, Radix views loans differently. The business was profitable enough to afford the debt, and between refinancing his high rate loans and reducing future rent payments, the borrower would not only build equity and secure additional working capital, but actually save money each month! While most banks would never consider a loan like this, Radix mowed it past the finish line with ease.
To learn more about our different financing options, contact a Radix representative today
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