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Asset Based / Secured Loan Products & "High-Risk" Equipment Financing Product Guidelines / Partner Commission Info April 11, 2020
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Page 1: Asset Based / Secured Loan Products High-Risk Equipment ...€¦ · "High-Risk" Heavy Equipment Financing Challenged Credit / Start-Up Program $200K Equipment Financing - Purchase

Asset Based / Secured Loan Products&

"High-Risk" Equipment Financing

Product Guidelines / Partner Commission Info

April 11, 2020

Page 2: Asset Based / Secured Loan Products High-Risk Equipment ...€¦ · "High-Risk" Heavy Equipment Financing Challenged Credit / Start-Up Program $200K Equipment Financing - Purchase

Products - Overview

$20K - $5MM Funded Up to 65% LTV / No Minimum Credit Score Agriculture, Manufacturing, Construction,

Transportation & Vocational Other Equipment and Real Estate Considered Application only up to $75K

$50K - $5MM Funded Cross-Collateralization up to 75% Combined LTV 1ST, 2ND & 3RD Liens Real Estate Collateral Types: Office, Retail,

Industrial, Multifamily, Residential and Infill Land Interest-only & Custom Amortization Schedules

$20K - $5MM Fundedea y Equipment 65% LTV, FLV $20

Real Estate 70% LTV LTC6 – 60 month Terms $200K12 – 60 month Terms < $200KRefinancings, Turnarounds & Business Expansions

NovaeMoney.com

"High Risk / Starter" Owner-Operator Truck Financing:

Structured Financing / Working Capital (Secured):

Real Estate Based Financing / Cash-Out Refinancing:

"High-Risk / Starter" Heavy Equipment Financing:

Up to $55,000 FundedUp to 75% LTV2013 or Newer TractorsClass 8 Tractors < 700K milesClass 6 Tractors < 250K miles2013 or newer Trailers ReefersNew CDL OK Non-CDL Considered

Page 3: Asset Based / Secured Loan Products High-Risk Equipment ...€¦ · "High-Risk" Heavy Equipment Financing Challenged Credit / Start-Up Program $200K Equipment Financing - Purchase

Mercedes Benz Engines & Cat-13 Engines2014 and older: Maxxforce 13 & N13 EnginesMedium Duty - Maxxforce 7 & 9 EnginesPrivate-Party SalesRebuilt, Rebranded or Salvaged TitlesChild Support DelinquenciesCurrent or Dismissed BK (Discharged BK is OK)Open Tax iens 10KAuto Charge-offs or Repossessions

Class 8 Tractors: 2013 or newer, < 700k milesClass 6 Tractors: 2013 or newer, < 250K milesTrailers: 2013 or newerReefers: 2013 or newer, 15k hours

Additional Collateral Considered!Customer-owned collateral meeting the guidelines above may be considered to reduce the required down payment.

Submission Requirements: Truck Purchase Finance Credit Application Dealer nvoice uote Spec Sheet: Price, Specs, Mileage, VIN,

Engine Make & Model, Transmission,Sleeper Size & Type (Spec Sheet must be printedon Dealer’s letterhead OR hyperlink directly tovehicle specs on Dealer’s website)

Acceptable Collateral: Non-Starters / Disqualifiers:

Get Started - Requirements / Terms / Fees

Trucks & Trailers For "High Risk / Start-Up" Owner-OperatorsOwner-Opertors

Purchase Financing: $5,000 - $55,000 up to 75% of Cost

Fees: $850 Documentation $600 GPS Installation

Funding Stips & Terms:InterviewTest DriveCDL or DLGPSAdditional stips listed on funding checklistwith approval

Early Payoff: After 12 months of timely payments,

with all outstanding payments, charges and a $500 fee.

Partner CommissionCommission: Down Payment:

Up to 4% 25%

Up to 5% 40%

12 – 60 Month Terms

[email protected] / 678.750.3787 / 1257 Commercial Dr Suite B, Conyers, Ga 30094NovaeMoney.com

Page 4: Asset Based / Secured Loan Products High-Risk Equipment ...€¦ · "High-Risk" Heavy Equipment Financing Challenged Credit / Start-Up Program $200K Equipment Financing - Purchase

"High-Risk" Truck & Trailer FinancingNo Minimum FICO / Start-Ups OK / Past Bankruptcy OK

Client Challenges: Bad Credit, Start-Up, No Tax Returns, Past BK, Foreclosure or New CDLOur Terms: Up to 75% LTV, Up to 60 Month Terms, All Fees Financed & Early Payoff AvailableOur Process: Submit Application & Supporting Docs / Same Day Approvals Available

Purchase Financing - 2015 Peterbilt 5791st Time Buyer / Start-Up / 622 Credit ScorePurchase Price: $50,663Amount Funded: $38,663Down Payment: $12,000Monthly Payment: $1,159

Title Loan - 2015 Volvo 780$11,895 FundedTitle Loan for Working CapitalFunded Cash Flow and Repairs after Switching ContractsMonthly Payment: $500 for 3 mos. then $650

Purchase Financing - 2016 Kenworth T6801st Time Buyer / Start-Up / 548 Credit ScorePurchase Price: $39,950Amount Funded: $29,950Down Payment: $10,000Monthly Payment: $920

Equipment Spec Information:

Class 8 Tractors: 2013 or Newer / Less Than 700K MilesClass 6 Tractors: 2013 or Newer / Less Than 250K MilesTrailers: 2013 or Newer (older trailers considered if financed with approved tractor)Reefers: 2013 or Newer Engines / Less Than 15K Hours

Page 5: Asset Based / Secured Loan Products High-Risk Equipment ...€¦ · "High-Risk" Heavy Equipment Financing Challenged Credit / Start-Up Program $200K Equipment Financing - Purchase

Agriculture Construction Transportation Vocational

Private-Party SalesOpen BankruptcyAuto Charge-offs or RepossessionsRebuilt, Rebranded or Salvaged TitlesChild Support Delinquencies

"High-Risk" Heavy Equipment Financing

Minimum FLV $20,000/unit:Yellow Iron: 2004 or newerVocational & Dump Trucks: 2005 or newerClass 8 Tractors: 2013 or newer, < 700k milesClass 6 Tractors: 2013 or newer, < 250K milesTrailers & Reefers: 2013 or newer

Submission Requirements: Heavy Equipment Application Equipment Invoice(s) & Specifications Last 3 Months Complete Business Bank

Statements

Acceptable Collateral: Non-Starters / Disqualifiers:

Get Started - Requirements / Terms / Fees

Purchase Financing: $20,000 - $250,000 up to 65% LTV

1st Lien Only24 – 60 Month

Terms

Fees: $645 Documentation $300 Per GPS Unit $300 Per Site Inspection Fee $200 UCC Search & File Fee Title Work at Cost to Client

Funding Stips & Terms:InterviewInspectionGPSUCC Search & File if non-titledDeposit: $750+Interest Only: Not available

Early Payoff: At any time after funding. Payoff Amount = Present Value of remaining payments discounted at 10% annual rate + any outstanding payments and or fees.

Additional Collateral Considered:Owned collateral meeting the guidelines above may be considered in lieu of, or to reduce, a down payment.

Partner Commission:Commission: Loan Size:

Up to 7% $75,000

Up to 6% $75,001 - $250,000

NovaeMoney.com [email protected] / 678.750.3787 / 1257 Commercial Dr Suite B, Conyers, Ga 30094

Page 6: Asset Based / Secured Loan Products High-Risk Equipment ...€¦ · "High-Risk" Heavy Equipment Financing Challenged Credit / Start-Up Program $200K Equipment Financing - Purchase

"High-Risk" Heavy Equipment FinancingChallenged Credit / Start-Up Program

$200K Equipment Financing - Purchase For ExpansionA young / start-up company needed capital to purchaseequipment in order to grow their business, but lacked cash fordown payment & business history to get approved elsewhere.Solution: Overcame lack down payment and businesshistory by taking a security interest in a $400K realestate asset at 2:1 collateral coverage - 2nd position lien.

Purchase Financing - New Bobcat A general contractor with bad credit (520 FICO) needed toreplace an inoperable Bobcat to complete scheduled job.Solution: We financed 65% of the purchase price ($52,000).Down Payment: $18,200Payment/Terms: $1,400 Per Month / 36 Months

Client Challenges: Bad Credit, No Down Payment, No Tax Return, Start-Up & high rental costsOur Terms: Approvals Up To $250K, 24-60 Month Terms, Up To 65% LTV & Early PayoffOur Process: Submit Application & All Supporting Docs / Same Day Approvals Available

Heavy Equipment FinancedAgriculture / Construction / Transportation

Approvals Up To $250K / No Minimum FICO / Start-Ups OK

Page 7: Asset Based / Secured Loan Products High-Risk Equipment ...€¦ · "High-Risk" Heavy Equipment Financing Challenged Credit / Start-Up Program $200K Equipment Financing - Purchase

Asset Based - Real Estate

Minimum Equity: $100,000/property:

OfficeRetailIndustrial

Submission Requirements: Signed Application & Property Data Worksheet New Deal Cover Sheet Last 3 Months Complete Business BankStatements & Current MTD Business Bank Statement Previous Year’s Business & Personal Tax Returns Property Financials - Last 2 years and YTD interim Previous Property Appraisals - if availableIf Applicable: Current Mort a e Line of Credit Statements Property Rent Roll

Acceptable Collateral:

Get Started - Requirements / Fees

1st, 2nd & 3rd Liens: $50,000 - $5,000,000 up to 70% Combined LTV

Fees - Rolled Into Loan:$1,500+ Documentation$300 Per Site Inspection Fee$200 UCC Search & File FeeTitle Work at Cost to Client

Funding Stips & Terms:InterviewInspectionDeposit: $2,000+Fundings $250,000:

Early Payoff considered on requestInterest Only considered on request

Property PurchaseWorking CapitalRefinancingImprovements

Uses of Funds:

Fundings $100K 6 – 60 months

Fundings < $200K 12 – 60 months

Loan Term:

Valuation (internal)Real Estate Title Search

Additional Collateral / Cross-collateralizationProperties meeting the guidelines above may be considered.

Partner Commission:2% to 3%

Subject to loan term

MultifamilyResidentialInfill Land

[email protected] / 678.750.3787 / 1257 Commercial Dr Suite B, Conyers, Ga 30094

Page 8: Asset Based / Secured Loan Products High-Risk Equipment ...€¦ · "High-Risk" Heavy Equipment Financing Challenged Credit / Start-Up Program $200K Equipment Financing - Purchase

Capital Tied Up In Real Estate?Let's Put Your Equity To Work!

$375,000 Cash-Out Refinance - Debt ConsolidationSuccessful business owner needed funds to consolidate shortterm debt (2 MCA's) & get access to additional working capital.Solution: We provided a $375,000 2nd lien cash-outrefinancing of a 12-unit apartment building to pay off $300KMCA balance & provide $75K additional working capital.Terms: 48 Months / $10,900 Per Month

Client Challenges: Capital Tied Up in Real Estate, Need Bridge Financing, Bad Credit, Need Working Capital, MCA's Killing Cash Flow or Turned Down By BankOur Terms: Approvals From $50K - $5MM, Up To 60 Months, Up to 70% LTV, All Credit Profiles, Early Payoff Available, Interest-Only Bridge Loans and Cash-Out RefinancingOur Process: Submit Application & All Supporting Docs - Receive funds as fast as 5 days

Acceptable Real Estate Assets:

Office, Residential, Retail, Industrial, Multifamily & Infill Land

Page 9: Asset Based / Secured Loan Products High-Risk Equipment ...€¦ · "High-Risk" Heavy Equipment Financing Challenged Credit / Start-Up Program $200K Equipment Financing - Purchase

Private Party SalesOpen BankruptcyAuto Charge-offs or RepossessionsRebuilt, Rebranded or Salvaged TitlesChild Support Delinquencies

Structured Financing / Working Capital

EQUIPMENT Up to 65% LTV with minimum $20,000 FLV/unit:

Industries: Agriculture, Construction,Transportation & VocationalYellow Iron: 2004 or newerVocational & Dump Trucks: 2005 or newerClass 8 Tractors: 2013 or newer, < 700k milesClass 6 Tractors: 2013 or newer, < 250K milesTrailers & Reefers: 2013 or newer

REAL ESTATEUp to 70% CLTV with minimum $200,000 FMV/property:

OfficeRetailIndustrial

Additional Collateral / Cross-Collateralization: Owned collateral meeting the guidelines above may be considered.

Acceptable Collateral: Non-Starters / Disqualifiers:

$20,000 - $5,000,000 Secured by Real Estate & Heavy Equipment

Equipment PurchaseProperty PurchaseWorking CapitalRefinancing

Uses of Funds:Fundings $200K

6 – 60 months

Fundings < $200K12 – 60 months

Loan Term:

Real Estate or Equipment Equity

Heavy Equipment Equity Collateral:

1st Lien Only

Real Estate Equity Collateral:1st, 2nd, 3rd Liens

Partner Commission:Commission: Loan Size:

Up to 6%* $20K - $250K

Up to 3%* $250K - $3MM

* Subject to loan term

NovaeMoney.com

continued

MultifamilyResidentialInfill Land

[email protected] / 678.750.3787 /1257 Commercial Dr Suite B, Conyers, Ga 30094

Page 10: Asset Based / Secured Loan Products High-Risk Equipment ...€¦ · "High-Risk" Heavy Equipment Financing Challenged Credit / Start-Up Program $200K Equipment Financing - Purchase

Structured Financing / Working Capital (continued)

Submission Requirements: Structured Finance Credit Application Real Estate / Property Worksheet Equipment Invoice(s) and Specifications Last 3 Months Complete Business BankStatements & Current MTD Business Bank Statement Business Financials: Last 2 years and YTD interim Property Financials: Last 2 years and YTD interim Current Business Debt Schedule Previous Year’s Business & Personal Tax Returns

Previous Property Appraisals, if available

If Applicable: Current Mortgage Line of Credit Statements Property Rent Roll(s)

Get Started - Requirements / Terms / Fees

$20,000 - $5,000,000 Secured by Real Estate & Heavy Equipment

Fees:$1,500+ Documentation$300 Per GPS Unit$300 Per Site Inspection Fee$200 UCC Search & File FeeTitle Work at Cost to Client

Funding Stips & Terms:InterviewInspectionGPSUCC Search & File if non-titledValuation (internal)Real Estate Title SearchDeposit: $2,000+Early Payoff: Considered on request forloans $250,000Interest Only: Considered on request forloans $200,000

NovaeMoney.com [email protected] / 678.750.3787 / 1257 Commercial Dr Suite B, Conyers, Ga 30094

Page 11: Asset Based / Secured Loan Products High-Risk Equipment ...€¦ · "High-Risk" Heavy Equipment Financing Challenged Credit / Start-Up Program $200K Equipment Financing - Purchase

Partner Commission Schedule

NovaeMoney.com

Owner-Operator Truck Financing

Structured Financing / Working Capital

Real Estate Financing

Heavy Equipment FinancingCommission: Loan Size:

Up to 7% 5

Up to 6% $75,001 - $250,000

Commission: Minimum Down Payment:

Up to 4% 25%

Up to 5% 40%

Loan Size:

Up to 6%* $20K - $250K

Up to 3%* $250K - $3MM

* Subject to loan size & term

Commission:

2% to 3%

* Subject to loan term

Commission:

Page 12: Asset Based / Secured Loan Products High-Risk Equipment ...€¦ · "High-Risk" Heavy Equipment Financing Challenged Credit / Start-Up Program $200K Equipment Financing - Purchase

Asset Based / Secured Business Loan - FAQs

NovaeMoney.com

Q: How do I submit a financing application?

Submit all required documents for the product of choice to: [email protected]

Q: What is the minimum FICO score required for Asset Based / Secured Loan Products?

We do not have a minimum FICO score requirement - Prefer to have a 500+ credit score.

Q: How long does it take to close a Asset Based / Secured loan transaction?

Trucks: We provide same-day approvals for Owner-Operator truck purchase financing. Equipment: 3 - 5 business days, on average.Real Estate: 10 business days from opening title, on average.Structured Financing: 10 business days from opening title on real estate collateral (average)

Q: Who is my Novae contact during and after loan approval?

Your point of contact changes based on where you are in the funding process. Our team works closely together to ensure a smooth transition process from application-to-funding and post-funding.

For all new submissions, please use the following email addresses:

[email protected] - Application Submissions, Approval Contingency Stipulations Collateral Changes, Invoice [email protected] - Questions on commission / getting started as a partner

Q: Is Novae accepting new partner relationships?

Yes, we are always seeking to add new experienced partners to our team.


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