In general, debt financing involves raising money for business purposes in exchange for promised principal and interest payments. There are multiple types of debt financing available to commercial real estate and other business owners from a variety of lenders, including banks, pension funds, insurance companies, and other financial institutions. Each type of debt has its own function, terms, risk, cost and maturity. The job of the financing experts at Remington is to work with both sides of a commercial transaction to creatively mix and match these options with the interests of all the parties in ways that will secure the best possible rates and terms consistent with client needs and market conditions.

In the typical funding structure for commercial real estate, senior debt usually accounts for 50-70%
of the funding stack. By definition, senior debt is just that. It is senior to equity and all other forms
of mezzanine (junior, subordinated) debt. As such, senior debt stands first in line before all other creditors for interest and principal payments and, in the event of liquidation, the repayment of debt. Most senior debt on commercial real estate is amortized over 15 to 40 years, with interest rates, either fixed or floating. Rates tend to be based on the quality of the collateral involved and the property’s historic cash flow, with higher rates tied to the degree of risk involved.

Many commercial real estate loans mature in three to ten years, resulting in a balloon payment at the end of the term. Remington professionals are equally adept, however, at securing financing across the funding stack for virtually any business purpose, with or without the involvement of real estate, including loans for expansion, working funding, operating funding, investment funding, etc.

By and large, asset-based business loans have lower interest rates than unsecured loans and may be tied to the particular asset being purchased or other assets of the borrower.

The financing experts at Remington Financial Group have the extensive market knowledge, broad expertise, technical resources, and lender relationships required to successfully navigate through the often-complex maze of competing interests in the funding finance industry.