International Leasing & Asset Finance Network
Credit Markets in Charlotte
Banks and institutional sources are actually starting to fund transactions in the $500,000 to $2,000,000 range on a limited basis. Charge - offs are down, or at least reserved for adequately, and run-off is killing returns. Credit requirements are very conservative, back to what I call “1970’s Bank Credit Manual” loans. Most approvals are for 75% LTV’s with shorter terms. Credit scores for guarantors (there are no non-recourse deals out there) better be 700 plus. Tangible net worth needs to be 2 to 3 times the advance and coverage at 1.15X or better.
That’s the tough news. The good news that rates are in the 6% to 8% range, including fees.
Anyone else seeing a crack in the window? Or am I dreaming?
That’s the tough news. The good news that rates are in the 6% to 8% range, including fees.
Anyone else seeing a crack in the window? Or am I dreaming?
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