Answer. Capital, our two main goals in any transaction are 1) to create a competitive environment that forces capital sources to compete for the borrower's loan and 2) to manage the loan process effectively so that the borrower has minimal efforts involved.
Banks are typically constrained by a basic range of loan products coupled with tight underwriting guidelines that sometimes make the experience difficult. The bank is attempting to maximize profits while pushing as much of the risk back on to the borrower. They typically offer minimal assistance throughout the process and are easy to discard a loan that may have difficult issues.
Unique Capital's approach is fundamentally different. Our fiduciary obligation is to you, the borrower. Since we are not limited by our affiliation with any one lender, we are able to present your loan to a broad spectrum of potential capital sources and secure the best terms and pricing that the market can offer at that point in time. We take the time and effort out of having the borrower price shop between a number of banks, which is a lengthy process. Equally important, you have a team of people who are focused on making sure that the loan closes with an expected time frame and term. We attempt to lessen the burden on the borrower as much as possible.
Q2. Do we end up paying more fees by working with Unique Capital?
Answer. Unique Capital charges a placement fee of one percent of the loan amount. Banks also typically charge a loan fee of one percent or add an equivalent discounted value into the spread. Because Unique Capital absorbs the cost of originating loans for the lender, we are able to negotiate direct pricing with most lending sources. As a result, borrowers typically incur no additional costs by engaging us to negotiate and manage their transaction.
In addition, Unique Capital saves its clients time and money by creating a competitive environment that forces the market to compete for the borrower's business. Ultimately, clients get all the cost benefits of a more effectively managed transaction without having to accept larger spreads or loan fees.
Q3. Who are Unique Capital's lending partners?
Answer. The goal at Unique Capital is to add value to customer transactions by offering a wide range of financing alternatives and direct access to top national, regional, and local lenders. These lenders include a myriad of banks, conduits, insurance companies and private investors. In addition to permanent debt financing, we regularly structure transactions using high-leverage bridge loans, mezzanine debt, construction loans and straight equity. For loan amounts below $3 million we have developed strong relationships with our Preferred Capital Affiliate partners mentioned below.
