Commercial Financing
For many years, the principals of American Med & Commercial Capital has arranged below-market-rate financing for builders and developers. Our key index for financing is floating, 30-day LIBOR. Historically, the 30-day LIBOR does not fluctuate significantly and is usually the lowest market index rate.
We are a premier source of funding for both commercial real estate financing and refinancing. However, we can provide financing for any commercial business purpose when the loan is backed by a Direct-Pay Letter of Credit (DPLC). Our lending begins with deals that are at least $10 million, and only limited to an institution’s ability to issue a maximum size letter of credit. We typically close our loans within 2 to 4 weeks.
Why Use a Direct-Pay Letter of Credit?
Direct-Pay Letter of Credit is ideal for a family office, for example, to both reduce the aggregate cost of financing and double dip. If your portfolio is earning 7%, retain your portfolio and use it to back a DPLC. We syndicate the DPLC and the proceeds from the DPLC go into your project while your portfolio remains intact. An interest-only loan at 30-day LIBOR is ideal for almost any borrower. Depending on your bank, a DPLC can generally be obtained for a nominal fee. We can also pay this fee for you at the time of closing from the proceeds.
In today’s market, banks have significantly less cash; yet we still have billions of dollars to lend at low rates, utilizing money market funds analogous to the municipal bond process. Many lenders today are asking borrowers to move their deposits in order to obtain their loan; yet your bank does not want to see you pull your deposits. We help by keeping your banking relationship intact while the bank receives fee income from the DPLC. Hence, a win-win-win.