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Projects that can be funded by CCMB: Asset-Based

Asset-based funding is where the funding outlaid to a third-party is secured by an asset. For example, Capital Corp Merchant Banking would disburse funding to a group and secures an asset with a mortgage till the funding is paid in full. Should the company default on its obligations during funding then the asset would be foreclosed. Asset-based lending is commonly offered by a variety of sources, from banks to investment groups. There would, of course, be difference in the level of collateral expected, interest rate due, and so forth. The type of collateral secured by an asset loan can also be wide-ranging. Many believe this would only be tied to hard assets such as land or buildings. H

Defining Swing Loans

Capital Corp Merchant Banking previously issued a post highlighting a “hard money” loan. The primary difference between that type of financing and the topic of this post, that of a a swing loan, is the timing aspect. In this instance, a “hard money” loan is for a real estate asset with a clear path forward while a swing loan (or bridge financing) is for property in a type of transition. In common understanding that type of loan is for a normally short period until an additional, more permanent, type of financing can be procured. Generally, because a swing loan is based on an unsure future, the interest rate is usually higher. For instance, a bridge loan can normally be procured by a land

The Fakers - Part II

Projects that can be funded by CCMB: Asset-Based

Defining Swing Loans

Projects that can be funded by CCMB: Asset-Based

Defining Swing Loans

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