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Ideal Clients by Tony Zara, Vice President, Mercantile Commercial Capital, LLC
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Mercantile Commercial Capital is focused on providing Smarter Financing for owners of small and mid-sized businesses who want to own their commercial properties. Since we’ve narrowed our scope to this particular niche, we are often asked IF and HOW we are able to help with certain loan scenarios. Due to the number of phone calls and emails we get daily, we thought it might be helpful to list the attributes that our Ideal Clients would possess.

This month, we highlight two types of properties — multi-use and special-use — and describe what our Ideal Client is in each case. If you or someone you know is considering purchasing commercial real estate, consider the following lists basic guidelines of a few of the things we’re looking for in a Client.*

Multi-Use Properties

We provide up to 90% Loan-to-Cost Financing for ground-up construction, acquisitions and acquisitions with renovations for property types such as: Offices, Office/Warehouses, Industrial, Office Condo, Industrial Condos, Retail and Retail Condos.

Our Ideal Client is one who:
-Is planning to occupy a simple majority (an owner-occupant or “end-user”).
-Sees the value of only putting 10% down and can find a better ROI for their “equity savings,” while still getting the benefits of commercial property ownership.
-Has 2 years of historical financial data with adequate debt service coverage.
-Has a personal credit score greater than 640.
-Has positive revenue and net income trends over the past 3 fiscal years.
-Has the ability to show sufficient working capital after their equity contribution (solid personal liquidity).
-Wants to purchase, construct, refinance, or cash-out refinance a multi-use commercial property.

Special-Use Properties

We provide up to 85% Loan-to-Cost Financing for ground-up construction, acquisitions and acquisitions with renovations for property types such as Restaurants, Hotels, Daycare/Childcare, Car Washes, Gas Station/C-Stores, and Assisted Living Facilities. (In some circumstances, we may be able to finance 90% Loan-to-Cost, which for ground-up construction projects, may be the equivalent of about 95% loan-to-value.)

Our Ideal Client is one who:
-Is planning to occupy a simple majority (an owner-operator or “end-user”).
-Has a secondary source of repayment (i.e. an affiliate company that can help support the proposed debt).
-Sees the value of only putting 15% down and can find a better ROI for their “equity savings,” while still getting the benefits of commercial property ownership.
-Has 2 years of historical financial data with adequate debt service coverage.
-Has management/ownership experience within the industry.
-Has a proven franchise concept.
-Has a personal credit score greater than 640.
-Has positive revenue and net income trends over the past 3 fiscal years.
-Has the ability to show sufficient working capital after their equity contribution (solid personal liquidity).

* By doing this, we mean only to illustrate our “sweet spot” and make it easier to spot the “no-brainer” deals that fit for us. If you or someone you know has questions about our financing, please feel free to call anytime (1-866-622-4-504), email (info@mercantilecc.com) or visit our website (www.504Experts.com) to learn more.

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