Financial Terms Glossary
- 2nd Trust
A 2nd Trust is a lien instrument that is
subordinated to a senior lien or 1st
Trust. Such financing may be structured
or referred to as Mezzanine and/or
Equity depending on the terms of the
note.
- Acquisition/Development
Loans are used to acquire and develop
real property to an improved state. In
many instances, voucher control is set
up to disperse loan proceeds with only
interest paid on the funds distributed.
- Bridge Loans
There are many types of short-term
financing products available for complex
and challenging situations in terms of
both urgency and product type. This type
of financing is designed to be paid back
relatively quickly, such as by a
subsequent longer-term loan, bridge
loans can be a key component in a
long-term strategy for real estate
borrowers. Wincreek offers a wide range
of Bridge Loan programs and will educate
borrowers about the nuances of these
products to better plan for the future.
- Construction
Typically, Construction Loans are
short-term loans utilized by borrowers
to finance building costs. Every
construction loan varies depending on
the product, the length of the
construction process, and the borrower's
experience. We can help builders find
the best source, rate and term for these
often critical loans. Generally, the
land and improvements are held as
collateral for the loan. Reserve
accounts are maintained to disperse
funds during construction.
- Equipment Leasing & Financing
This financing program enables your
business to obtain equipment financing
or equipment refinancing for up to 7
years based on your machinery and
equipment. The term of the loan is based
upon the equipment, the cash flow of
your business, and the useful life of
the equipment.
- Equity
Small and institutional investors may
invest project equity with qualified
developers and operators when there is
significant opportunity for value
appreciation and/or cash-flow
enhancements.
- Inventory Financing
Wincreek provides inventory financing in
conjunction with its Receivables
Financing programs. An inventory loan
could result in us advancing up to 50%
of the cost of your inventory, depending
on the nature of the inventory.
- Land Financing
These loans are designed for the
developers with attractive projects who
either have no cash or do not want to
put a lot of money into their deals.
Land Loans are used for unimproved real
property, from lots to raw acreage.
- Letters of Credit
Wincreek can arrange for letters of
credit for all of your business
requirements.
- Mezzanine
Whether it is structured as partnership
debt or preferred equity, a Mezzanine
Loan can be an integral component for a
real estate owner or developer in many
diverse circumstances. The Mezzanine
typically equals the difference between
the first mortgage lending amount and
85-90% of the purchase price.
Essentially the program lends additional
funding when first mortgages have
reached their maximum loan amounts. We
have vast experience in evaluating
options for our borrowers in this
increasingly utilized loan product for a
variety of real estate transactions.
These loans are subordinate to a primary
lender.
- Non-Bankable Financing
This program is for loan requests that
are not acceptable by a typical bank,
life insurance company or conduit
lender. The issues may be credit, debt
service (income issues) and/or
collateral. For such financing, the
project must be located in a strong
market.
- Purchase Order Financing
If you have a Purchase Order from a
credit-worthy customer, but lack the
funds to pay for the goods prior to
receiving payment from your customer,
Wincreek is able to provide you the
financing your business needs to fulfill
that order.
- Receivable Financing
Receivable Financing is often referred to as asset-based lending (ABL), Accounts Receivable Factoring, and Invoice Factoring. These financing programs are in fact revolving lines of credit which provide your business cash advances tied to your company's Accounts Receivable.
- Rehab/Repositioning
Otherwise known as a Renovation Loan,
this type of financing is similar to a
Construction Loan and may involve
financing to upgrade an existing
property to project the desired image of
a product or service to the market.
Wincreek lending professionals are able
to help borrowers present their
renovation program to the ideal lending
source and to plan and consummate
transactions in a timely fashion, with
the best rates and terms available.
- Senior Debt
This is a typical mortgage or loan that
is secured by the subject property or
other collateral. Senior Debt, otherwise
referred to as Debt, is the most popular
form of lending as the lender is in a
“senior” security position as to the
underlying collateral. Consequently,
Senior Debt tends to be the least
expensive form of financing available.
- Structured Finance
This involves an overall plan for a
professional solution to your commercial
financing needs. It may involve some or
all of our financial products as well as
the possibility of us structuring
financial arrangements that involve
other financial institutions and banks.
- Term Loans
Your business can obtain working
capital, collateralized by your
machinery and equipment as well as your
industrial and commercial real estate.
- Trade Finance
Wincreek provides working capital
inventory loans in conjunction with our
Receivables Financing programs. An
inventory loan could result in Wincreek
advancing up to 50% of the cost of your
inventory, depending on the nature of
the inventory.
- Traditional Factoring
This is an arrangement whereby you sell
all your accounts receivable to the
lender for an agreed period of time and
receive large cash advances immediately
after issuing your invoices to your
customers.
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