F.A.Q

The most important documents typically include a Pendrith application form specific to your request. Alongside any balance sheets, profit & loss statement of your company or real estate. Two years of  financials really helps us get terms you are looking for .This helps us underwrite and price terms accordingly. The more we know the more likely we are to help you out with several creative set ups.  This helps boost your chances of getting funding for your request.

Depending on the documents you have at hand, a wide array of documents may help to boost your chances of securing financing to lease or purchase equipment. As a standard, we require the profit0 and loss statements of the two preceding financial years, and balance sheets showing the true financial position of your company. To further increase your chances of securing financing; however, it is recommended that you also include a list of equipment you want to purchase, or an appraisal and a force liquidated value list. Presenting a copy of the purchase order or the invoice would also help to improve your chances of securing purchase order or invoice financing.

It’s best to assess the financial performance of the property you are looking to refinance or purchase. Statements of profit or loss for the three financial years preceding the date of requesting for the loan would be needed. Your current rent roll and a 12-month trailer are also going to help. Its best to send  us back our Pendrith Commercial real estate application filled out as that would help us assess the situation properly.

In order to secure preferred equity or construction debt. We would need a costed-out document that illustrates to use the following. An Internal rate of rate, the multiple on equity, and sales projections. A deck or business plan including drafts, management and company snapshot would help us assess the viability of your project. The more we know about your project and companies’ financial health the better.

This is to  help to show us how you  plan to minimize risk while implementing your capital requests. The lender  or equity partner needs to see exactly how you plan to use the funds and how the lender can benefit from the deal before providing the financing requested.

A private placement memorandum helps to show in explicit detail, the mode by which you plan to execute your business plans. While this document is not obligatorily required, it helps a great deal in proving the viability of the request to lenders. It improves your chances of securing the financing you need. Private placement memoranda may be written up for a fee depending on the size and complexity of your project. As a capital advisory firm, we can help provide you with a private placement memorandum if you require one.

The period it takes for a commitment to funding to be made by a lender depends on the availability of needed documents, and the type of funding required. If everything needed has been put in place by the client, the average real estate funding process takes between 15 to 60 days. For Equipment and Purchase Order or Invoice Financing; however, a commitment may be received within 7 to 35 business days, or longer.

The need for a personal guarantee would depend on your plans, the financial position of your enterprise, and other factors specific to you as a client. Therefore, in some cases, a personal guarantee may be required, while in some cases, it may be unnecessary.

When seeking financing , personal financial statements are usually required for the lender to get an insight on your payment history and your level of debt leverage. Both as an individual and as a company. Your personal financial statement helps the lender to determine, through your records, if you should be provided with financing or not.

For equipment financing deals in Canada & United States a processing fee will be required to ensure we do not have clients that are shopping their deal around. Once soft terms are agreed and signed by a client. The fees are based on size and complexity of the transaction.

It is important to note that processing fees charged on equipment financing deals are often not refundable . If nothing can be done for the client, the fee is refunded. Should the client go elsewhere the client forfeits the processing fee. Should the client misrepresent or provide false documents the client will forfeit the processing fee. The processing fee is deducted from the success fee , when the success fee is earned by Pendrith Capital. We expect full transparency from our clients.

A client incurs a processing charge when a soft term sheet from Pendrith Capital is issued, showing that the client has decided to be introduced to the willing lender.

Under certain circumstances, the processing fee may be refunded. If the client decides, for instance, to accept the proposal of the lender that was linked to him via Pendrith, but the client was eventually not credited at the close of the deal, then a refund may be given. If the lender also fails to provide the required funding due to a fault from the lender, the processing fee may be refunded. The fault of the lender includes receivership , closing of its loan agency or firm. Situations out of control that do not relate to the client’s case. Clients over leveraged or failing to meet requirements after lender underwriting are not subject to a refundable processing fee. Often this happens when clients do not fully disclose the health and performance of their company.

If it is found out that the client falsified information in the documents submitted while seeking financing, or if the client decides to take up another offer presented by another introducing firm, then the processing fee becomes non-refundable.

It is important to note that equipment financing fees are not refundable for transactions below $ 2 million. As transactions under $2 million are the most shopped around in the equipment finance industry.

The borrower  pays a success fee to the tune of up to 1 to 3% of the total amount loaned to the client, to Pendrith Capital. The client is mandated to sign a legal authorization document making it obligatory for the lender to pay the pre-agreed success fee to Pendrith Capital. It is based on the financing amount finalized. We strongly prefer clients to have the lender pay out success fees to Pendrith.

Pendrith has direct relationships with correspondent and institutional lenders. We do not charge broker fees in several refinance situations for multifamily, office, industrial and mobile home community refinances. It all depends on the terms the clients accept. As some situations we do  not charge origination fees. Clients will be informed of that prior to a soft offer provided. Success fees are waived  on a case by case basis when we offer CMBS loans.

Depending on the value of the business deal established by the client you refer to us and other factors peculiar to individual cases, a referral fee may be paid to a referee.

Following the set standards of the capital advisory industry and sticking to our core principles of professionalism and mutual trust, we strive to keep the sensitive personal information of our clients as safe as possible to prevent cases of identity theft and other issues.

Financing requests made by clients are not indiscriminately sent around to several potential lenders at once. Instead, the client’s financing needs are ascertained, and the best lender to meet those needs is selected, and a link is established. It is only in rare cases where the first link doesn’t work put that a second lender is contacted.