Leveraged Alternative Capital Assets helps connect businesses and banks with alternative sources of financing from private equity investors. Stricter bank regulations have reduced the availability of commercial loans from local banks. This company evaluates borrowers and locates appropriate private or non-traditional lenders to fulfill financing needs for various types of projects, especially those involving real estate collateral. Their systematic process aims to save clients time and money by quickly identifying qualified funding options.

1. Leveraged Alternative
Capital Assets
We Help Banks and Business Owners ….
Make The Right Connections
Leveraged Alternative Capital Assets Locates Financing for a
Wide-Range of Projects and Business Needs, Primarily from
Private Equity Sources, as well as Traditional Sources.
Clyde Leverett – Principal

2. Why Is Alternative Financing Needed?
Commercial Loans you Expected to get from your Local Bank
in Many Cases are No Longer There due to:
1) Banks Being Nervous About An Uncertain Economic Future
2) Significant New FDIC Restrictions

3. FDIC Bank Loan Restrictions
Capital Bank Investment
x Capital Requirement
= Bank Loan Making Capacity
Bank Loan Capacity - Example:
• Banks can only lend money based on capital at hand
• Bank has a 5% Capital Requirement
• Capital Base of Equity of $100M
• Maximum Loan Capacity
$100M divided by .05% = $2B
* Capital Base of Equity Divided By Capital Requirement

4. Originations by Commercial Banks
are Declining Year over Year and here’s why ….
•3 years ago FDIC Capital Requirements for Mid Sized Banks = 3-4%
• Real Estate Values Fell – FDIC Capital Requirements = 5-12%
• Result = Significant Restriction on Bank Loan Capacity
• Same Bank as in Previous Example has $100M in Capital
• $100M Capital x 12% Requirement = $833M Loan Capacity

5. What Does All This Mean
“Capital Is Available” – “But Many Will Still Not Qualify”
We Can Potentially Help Many Businesses
1. Educating and Assisting Businesses
• Who and What Is Getting Funded
2. Locating Alternative Funding for Businesses
• Who Can Not Obtain Funding Due to
Underwater and Underperforming Commercial Assets

6. Our Mission is to Find the Right Funding at the Right Price from the Right
Lender as Quickly and Simply as Possible for our Borrower/Client. The Phrase
"TIME IS MONEY" is Most Applicable in the Loan Application Process.
Secrets to Quickly & Simply Secure Business Funding
1) Knowing your Potential for a Loan “Up Front”
2) Knowing What Programs & Loans Are Available To You
3) Knowing What Is Needed In A Professional Loan Request
4) Knowing Who Has Money & Who is Lending!

7. We Make The Right Connections
We Locate Financing for a Wide-Range of Projects and
Business Needs, Primarily from Private Equity.
Service Offering
Multi-Family: Small Balance Commercial Loan Credit Card
1) Refinance Business Loans / Modification Receivable
2) Cash Buyers Credit Lines Program Financing
Bank Turndown Discount Note Medical Practice Bridge Funding /
Program Purchase Program Loans Hard Money
Christian Church Alternative Energy Hotel / Motel Retail Projects

8. Recent Funding Examples
“Cash Purchase” – Apartment Complex
Purchase of 10 Multifamily Properties / $9M Multifamily Refinance
SBA Refinance of a Vending Business
Principal Reduction & Conversion – Hotel
New Financing for a Sports Complex
$350,000 Purchase Order
Converted Ground Fields to Mini Storage Units

9. Converting
“Turn Downs” Into “New Opportunities”
Bank Turn Downs Could Turn Into:
a) Loans
b) Discounted Note Workout
c) Loan Modification
d) Short Sale

10. Examples of Current “Growing Trend” Opportunities
* Almost any Business Owner with 5+ Employees
* Multifamily Owners Who Are Upside Down
* Retail Center Owners Who Are Upside Down
* Hotel / Motel Owners
* Multifamily Property Owners
* Business Owners Who Have Business Loans
Secured By Real Estate - with Cash Flow Problems

11. Our Unique “Save Time & Money” Approach
To Effectively Matching Borrowers & Lenders
Let’s You Know On Day 1 of the Loan Request Process:
* What Documents Are Needed & What Fees To Expect
* Timeframe for the Process & What Pitfalls To Expect
* Potential Lenders Interested In Your Request
* Cash Flow Tests That Underwriters Perform
To See If The Subject Property Can Satisfy The Loan

12. 5 Components Considered for
Providing Businesses with Capital
to Grow Their Revenue
1) Type of Business
2) Geographic Location of Business
3) Economics of Business
4) Collateral for Loan
5) Financial Strength / Creditworthiness of Sponsor

13. Different Types of Financial Solutions
for Different Types of Businesses
There are Many Different Types of Businesses, and Will be
Assessed Differently. There is Not an Exact Science.
Example: A Multifamily Property Can Be Potentially Financed
with the Following Programs: Fannie Mae, Freddie Mac, Bank
Financing, HUD/FHA, Life Insurance, Hard Money, Private
Money, and more….

14. 3 Words That Often Impact Loan Decisions
Location, Location, Location
Location
Geography Has A Lot To Do With Loan Placement
Example:
* Many Lenders Only Will Lend In Certain States, Some Only in
Major Metro Areas, Some Only Rural, etc….

15. Business Economics
1) Is Business Increasing or Decreasing Over Last 3 Years? or…
2) Is Rental Income Increasing or Decreasing?
3) How Is Business Credit?
4) Have Loan Payments Been Made On Time?
5) What Is The Net Operating Income of the Business?

16. What Will Collateralize The Loan?
If the Business Owns Commercial Property, the Loan Will be
Collateralized by the Property and the 2 Evaluation Factors will be:
1) Can the Income from the Business Pay for All the Expenses
Including the Mortgage Payments, with a Little to Spare and …
2) If There is a Default on the Loan, What is the Market Value of
the Property so the Lender can Recoup the Loan.

17. Sponsor Financial / Credit Strength
While Still Not the Focus of Commercial, the Sponsor or Loan
Guarantor is Becoming a More Important Factor and Will be a
Consideration in Lending Decision.
*****
Credit Scores of 680+ and Some Financial Strength
is a General Rule of thumb.

18. Maximizing the Potential for Success
of the Borrower’s Loan Request
We’ll Put Together a Very Professional Loan Request Package.
Such Professionalism Does Much to Enhance the Borrower's
Chances for Success in the Loan Process.
*****
Our Systematic Approach Will Save a Significant Amount of
Time, and in the Financial World "TIME IS MONEY“.

19. Trusted Business Partner To Banks
As Well As Borrowers
We also Help Banks Maintain Relationships with
their Clients by Helping them Get Funding for
Projects that they are Unable to Fund
Through their Traditional Channels.

20. We Provide a Unique Alternative Funding Resource
for the Unique Loan Underwriting Guidelines
Restricting Bank Loans Today
* More Stringent FDIC Requirements
* Lenders Tightening Underwriting Requirements
* REOs Too Large / Will Take Time To Digest
* Banks and Lenders Don’t Want to Own Real Estate
* Yet Banks Need To Retain Assets & Client Deposits

21. Our Unique Leveraged Alternative Capital Assets
Program Provides A Win-Win-Win Solution.
Borrowers Win: Receive Needed Business Capital
Banks Win:
1) Retain Assets and Deposit Base
2) Maintain Strong Customer Relationships
We Win: More Raving Fans

22. How To Get Started
• Submit A Quick and Easy Online Request
• Mail or Fax Qualification Analysis Documents
• If You Are A Local Business - We’ll Meet With You
• Call Us For A Free Qualification Analysis Consultation

23. Whether You Are A Borrower or a Lender
With a Loan “Turn Down”
Give Us A Call For A Free Consultation
Leveraged Alternative Capital Assets
Clyde Leverett – Principal
302-223-6296
clyde@leveragedalternativecapitalassets.com
www.leveragedalternativecapitalassets.com