How to Finance Commercial Real Estate

Commercial Loans

 Real Estate Secured Financing:

Our Commercial Real Estate Loans are term loans that are secured by Owner-Occupied and income producing real estate for investors or owners, and are generally used to finance or re-finance real property. We typically accept cash down payment and sometimes funds from refinancing other real estate holdings free of debt. The average amount of the down payment ranges between 20% and 35% for US borrowers, and between 25% and 50% for NRAs (subject to having a very reliable collections agent in the US, such as a reputable management company that will deposit all funds at an account at BBA for automatic loan payments).

Loan terms range between 5 and 10 years (interest rates fixed for five), with maximum amortization terms of 25 years depending on occupancy, location, the condition of the building, etc. Interest rates are highly negotiable and fluctuate according to market and the overall financial strength of each credit.

Interest rates are established on a case by case basis.

Working Capital Lines of Credit:

These lines are used to finance current assets such as accounts receivable (between 50% and 80% of total, aged less than 90 days) and inventory (up to 50%). Companies use them for cash availability or to bridge the gap until expected proceeds from product sales are received. Working capital lines are most suited for a company that has projected stream revenue, and need to secure capital before that revenue is available (meaning, until collecting on receivables from its customers).

 List of required information for most types of Business Loans:

  • Copy of purchase contract and proof of funds for initial investment.
  • Most recent Rent Roll and copies of all leases.
  • Complete Business Income Tax Returns for the past three years, including all schedules and K-1’s. If the Company’s Tax Returns are older than Six months, interim financial statements dated and signed by the company’s owner or CFO, will be required.
  • Business Financial Statements for the past three fiscal years and interim financial statements (if available) dated and signed by the company’s owner or accountant.
  • Organizational chart with brief description on key manager skills.
  • Current Personal Financial Statements on Banco do Brasil Americas form, from all principals/owners of the business, dated and signed by principal/owner (and spouse, if assets are jointly owned).
  • Complete Personal Tax Returns for the past three years from all principals/owners (20% or more stock ownership) of the business including all schedules and K1’s, and copies of W-2’s.
  • Two items of identification required: Current & clear copies, enlarge if possible ( ) Driver’s License ( ) Social Security Card ( ) Alien Registration Card ( ) Passport ( ) United States Visa Banking/Assets information: Provide the three of most recent bank statements for each of your bank accounts.
  • Last three statements for any type of retirement accounts, stocks, etc. Bank may require additional documentation for source of funds.
  • For Lines of Credit: Most recent Accounts Receivable and Accounts Payable Aging reports and a schedule of Inventory.

Banco Du Brasil is one of our Commercial Partners