FREQUENTLY ASKED QUESTIONS

Q: How long is the typical transaction term?

A: Our typical transaction structure is 12 months with a 6-month extension option. However, we have transactions that have extended as far as 48 months

Q: What are the interest rates for an asset-based loan?

A: Asset-based lending sources typically charge a higher interest rate than traditional funding. Rates, origination points, and other terms may vary based on client circumstances including credit score and Loan to Value ratio (LTV).

Q: What is the typical Loan to Value (LTV) requirement for an asset-based loan?

A: Typical LTV is up to 75%. In certain cases, a higher LTV may be acceptable.

Q: What does Core Capital Group require from clients to get started?

A: We require a financial package that includes: 2 years tax returns, a personal financial statement (PFS), year to date pay stub and credit report. We also require a 50-state criminal background check.

Q: Is it a problem if a client has a tax lien, unfiled tax returns, unpaid real property taxes, low credit score, are facing foreclosure or have insufficient taxable income?

A: Each of these items are carefully assessed, but do not necessarily disqualify a Borrower from funding approval. Most of our clients have experienced one of these issues.

Q: How quickly can Core Capital Group close an asset-based loan?

A: Typically 30 days are needed to close, however, if time is of the essence closing can be expedited.

Q: Does Core Capital Group allow non-recourse debt?

A: Typically, secured debt has recourse (personal guarantees), however, if the Loan to Value ratio (LTV) is low enough, personal guarantees may not be required.

Q: Does Core Capital Group allow unsecured debt?

A: No, all debt facility provided must be backed by a lien against a real estate asset.

Q: Does Core Capital Group accept second lien positions?

A: Typically, a first lien position is required on at least one real estate asset. A second position on an additional collateral property may be acceptable if there is significant equity remaining in the property.

Q: Do you require an appraisal on property used as collateral? Is tax value sufficient?

A: All loans require an appraisal on the collateral property regardless of tax value. An existing appraisal may be accepted.

Q: What documentation does Core Capital Group use to memorialize loans?

A: A Deed of Trust, Promissory Note, Loan Agreement and an Estoppel Deed in Lieu of Foreclosure are utilized to memorialized and secure the loan. Other documents may be required.

Q: Does Core Capital Group escrow for taxes and insurance?

A: Core Capital Group reserves the right to require escrow for taxes and insurance, however, all loans are not subject to this requirement.