1. Is your interest rate directly tied to the
Prime Rate?
2. Do you require a first lien position on the
working capital loans?
3. Do you require additional collateral?
4. Who qualifies as a medical professional?
5. Who does not qualify for your Medical Programs?
6. Does your credit decision take into consideration
projected earnings as well as the earnings history?
7. Do resident aliens qualify for your Medical
Programs?
8. How is time in business (TIB) determined?
9. Are spousal personal guarantees required?
10. Will you consider applicants with a bankruptcy
on their credit bureau report?
11. What major credit elements are considered?
12. Do you charge documentation fees?
13. Why are inspections required?
14. Why is life insurance required if theloan
is over $35,000?
15. Is property insurance required?
16. How is an early payoff calculated?
17. Why don't you offer a simple interest payoff?
1. Q. Is your interest rate
directly tied to the Prime Rate?
A. Our securitization rate is tied to 3-5 Year Treasury Bills.
Like all rates, we do have to consider the Prime Rate from a
competitive standpoint.
2. Q. Do you require a first
lien position on the working capital loans?
A. Lender's security position is the good credit of the doctor
and a blanket lien against the general assets of the practice.
Lender will normally be in a second or third lien position.
Please remember---Lender will file lien within 5 working days
of loan completion and will take whatever lien position is available
at the time.
3. Q. Do you require additional
collateral?
A. No. Real estate owned separate from the practice by the doctor
is not subject to our lien.
4. Q. Who qualifies as a
medical professional?
A. Practically all-medical professionals licensed a minimum
of 2 years. See reference chart for details. (Do not confuse
licensing requirement with time in business.)
5. Q. Who does not qualify
for your Medical Programs?
A. Doctor owned health clubs, spas, real estate companies, etc.
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6. Q. Does your credit decision
take into consideration-projected earnings as well as the earnings
history?
A. Both are considered, but more emphasis is placed on proven
earnings since projections are subjective.
7. Q. Do resident aliens
qualify for your Medical Programs?
A. Yes--provided they have been in the credit bureau reporting
system for at least seven years and have permanent U.S. residency
status. Proof of permanent residency may be required in some
cases.
8. Q. How is time in business
(TIB) determined?
A. TIB is the time the applicant has owned or managed their
current or prior practice.
9. Q. Are spousal personal
guarantees required?
A. In most cases, yes. However, we recognize that there may
be situations where the spousal guaranty is not available. We
only ask to be informed of this situation at the time of application
so the credit decision can be based strictly on the doctor's
credit. Spousal PG's normally help strengthen credit worthiness.
10. Q. Will you consider
applicants with a bankruptcy on their credit bureau report?
A. Yes, if the bankruptcy was discharged at least five years
ago and the applicant has made a good attempt to rebuild their
credit with no slow payments in the past two years.
11. Q. What major credit
elements are considered?
A. We consider the entire picture, but here are some of the
elements:
-Amount of credit card revolving debt in dollars and percent
available.
-Total debt and monthly debt load.
-Payment history within the past two years.
-Liens and judgments over $750.
-Home mortgage-a real plus since it denotes a degree of stability.
-Beacon & Fair Isaac scores must be over 650 to be considered.
-Availability and credit strength of a spousal guaranty.
12. Q. Do you charge documentation
fees?
A. Yes, if loan is $35,000 or less, the documentation fee is
$150. Over $35,000, the total fee is $300, which also pays for
a site or equipment inspection.
13. Q. Why are inspections
required?
A. The site or equipment inspection is our assurance the practice
actually exists in some cases or that the equipment has been
delivered.
14. Q. Why is life insurance
required if the loan is over $35,000?
A. In the event of death, the debt is paid and the surviving
family members are not faced with the burden of paying the balance
of the loan out of the estate. Life insurance is not normally
required in multiple doctor practices sine the practice would
likely continue in business in the event one doctor should die.
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15. Q. Is property insurance
required?
A. Yes. Since our lien is against the general assets of the
practice or specific equipment, we would have at least partial
coverage in the event of a catastrophic loss due to fire, flood,
etc.
16. Q. How is an early payoff
calculated?
A. The remaining payment stream is discounted at a 7% per annum
rate.
17. Q. Why don't you offer
a simple interest payoff?
A. The cost of loan or lease origination and fees to sources
are included in the original loan or lease amount and must be
recovered in the event of an early payoff.
We sincerely appreciate your business and we will work hard
to continue earning your confidence. If you have questions,
please feel free to call us toll free 1-866-717-CASH (2274)
at any time. We would also welcome your recommendations on how
we can serve you better.
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