Frequently Asked Questions
Loan Programs Offered Nationwide
Innovative Capital offers a wide range of tailored loan programs across the United States. Contact us today to see how we can help you achieve your financial goals.
Frequently Asked Questions
How is Innovative Capital Corporation different from a bank?
We utilize hundreds of banks and in-house private capital to offer a wide range of financing options that benefit our clients.
What other services can you provide for my business?
We utilize a network of experienced and talented business professionals to support the needs of our clients. Tell us about your business and we will utilize our network to provide a trusted solution.
What is a Hard Money Loan and how does it work?
- This is also referred to as private capital, and is a loan funded by private individuals, mortgage pools, and insurance companies.
- Collateral in the form of Real Estate is utilized.
- Terms are agreed upon, and the lender funds the loan and records a deed against the property.
What are the benefits of using Private Capital?
- There’s no restrictions on how you use the money.
- Interest only (in most cases).
- The terms can be anywhere from 1-7 years.
- You can borrow on a stated income basis.
- You don’t need two years tax returns on proof of income.
- You can pay the loan off in 3-6 months with no penalty.
- Challenged Credit is not an issue.
- You do not have to give up ownership of your business.
What is protective Equity?
Protective equity is the difference between the loan amount and the value of the property.
What if I already have a mortgage on my Property?
What should I know before getting a private Money loan?
- Collateral: you can lose the asset you pledge if you do not perform on the agreed upon terms.
- Private money loan originators must be licensed by the DRE or CFL.
- Most investors will not lend on land, Churches or participate in Joint Ventures.
What if my credit score is low?
Since we utilize a wide range of financing solutions, we will be your best bet to find a solution. Let’s talk and we will advise you of your different options.
How long does the loan take to process?
- Private Capital – 5-7 Business Days
- Bank financing 45 – 60 days
What types of loans does ICC Fund?
We can provide Fix or flip, RE Investment, SBA, Factoring, lines of credit, Business Acquisition, CAPX, Franchise financing, Commercial owner user RE, Commercial Investment, and Bridge loans.
What is a point, and will there be a point associated with the loan?
A point is equal to 1% of the loan amount. The average hard money loan has between 2 & 6 points. Example: $300,000 x 1% = $3,000
What is the process to submit a loan request?
- We’ll connect to learn more about your financing needs.
- With the information we have, we’ll advise you of your options.
- We’ll devise a strategy to proceed with our plan.
- We’ll present your file to multiple banks.
- We’ll leverage our network to gain multiple offers.
- We’ll strategically negotiate to achieve the best possible financial solution for you.
What are my options when my commercial loan matures?
We help our clients refinance their loans at maturity. We go to work to find you the best terms that meet your new financing goals. Our business is built to serve all the needs of our clients.
Are you a direct lender or a loan brokerage?
We are both – we utilize in house private capital and a network of financial institutions to provide our clients a wide range of options.
Why should I use Innovative Capital instead of my bank?
Utilizing Innovative Capital will connect your business with financing experts who go to work for you providing multiple options. When you go with one bank, you typically only get one or no offer. You lose the power of negotiation and the option to choose which offer is best suited for your business. When you are not approved, you must start the process all over again with a new bank. Working with Innovative Capital will put you in a stronger position to seek the best financing solution for your business.
What down payment do I need?
A safe rule of thumb is 30% down payment.
How do I get a quote?
Lets chat to learn more about you and your business. We will discuss the different solutions we recommend.
How do you save me money?
- We leverage our wide network of banks who provide us preferred rates due to our volume of loans.
- We receive multiple offers from presenting the loan to multiple banks at once.
- We keep the banks honest by having multiple offers.
- We negotiate the fees and rates on behalf of our clients.
- We have information that our clients might not be aware of, where we can reduce expenses.
What is the average reduction in rates?
A quarter to half a percent on their interest rate, plus the removal of different bank transaction fees can save you thousands over the term of the loan.
How do you save me time?
- We review the file to look for challenges to seeking capital. We present the loan to the bank to make their lives as easy as possible by eliminating issues before they come up in underwriting. The end result is that you have more offers in less time.
- If you only work with one bank, you might run into the issue of the bank turning down the loan, meaning you’ll have to start the entire process over with another banks. Gaining multiple offers at once reduces this occurrence.
- If there is a challenge that eliminates traditional financing or time is of the essence, we have in house private capital that can provide the needed solution. We will create a bridge loan to help close the deal and keep your business moving forward.
How do you solve problems before they come up?
- We know how the banks underwrite their loans based on our experience. Having experts preparing your file and presenting the loan in the best light. This strategy reduces the chance of future challenges delaying the funding of the loan.
- When the problem is such that no bank will provide financing, we have in house private capital to provide our clients the solutions they are seeking.