Xerographic Digital Printing and Certified Financial Group turned to alternative funding sources like Mercantile Commercial for commercial real estate loans rather than traditional bank loans. Mercantile specializes in SBA 504 loans which offer longer repayment terms and lower interest rates. Xerographic used a $1.7 million SBA 504 loan from Mercantile to construct a new $2 million building, allowing for lower interest rates and payments over time. Certified Financial also found Mercantile's SBA 504 program competitive for its $1.5 million building loan due to lower down payments and interest rates. As banks tightened credit, Mercantile has grown by providing expertise in SBA loans that some banks lack.

1. OrlandoBusinessJournal.com SEPT. 19-25, 2008
SOME LOCAL FIRMS TURNING TO
ALTERNATIVE FUNDING SOURCES
BY KARI WILBERG
A fter nearly 20 years of doing
business in a 7,600-square-foot
space, Xerographic Digital Printing
Certified Financial Group Inc. of
Altamonte Springs also decided
to seek alternative funding from
Mercantile Commercial often has
customers referred to it by banks that
lack expertise with the SBA’s 504
built a new 27,000-square-foot Mercantile Commercial when it built loan program, said Zara. “Without the
building on 33rd Street in Orlando its own $1.5 million 8,000-square-foot experience, a bank may feel out of its
four years ago. But when it came building in 2003. comfort zone if a client requests this
time to pay for the $2 million facility, type of loan.”
the firm didn’t go the typical route of “They had a competitive program in
getting a bank loan. terms of interest rates and an upfront The 504 loan program offers many
down payment that allows us to advantages over conventional
To be sure, Xerographic’s president, leverage our purchase to the max,” financing because of its longer
Keith Kemp, spoke with five banks said Joe Bert, chairman and CEO amortizations, long-term fixed interest
. . . but then decided to look into of Certified Financial. “It allowed rates and 90 percent loan-to-cost
alternative financing. us to take our capital and put it into financing, he said. Perhaps that’s why,
other areas of business.” Mercantile in the current era of tightened bank
“We actually had a commitment letter Commercial is a non-bank commercial credit, Mercantile Commercial has
from a couple banks, but they had high real estate lender for small and mid- grown consistently each year since it
interest rates and a seven-to-10-year sized businesses nationwide, and was founded in 2002.
balloon payment,” Kemp said. specializes in SBA 504 loans. It
made about $100 million in loans last
Instead, he opted to borrow $1.7 year, averaging $1.5 million on an
million from Mercantile Commercial individual transaction.
Capital LLC, where he got a Small
Business Administration 504 loan When considering lending money to
– available for growing businesses a client, Mercantile Commercial takes
for major fixed assets such as land, many things into account, including:
buildings and machinery – with an business cash flow, personal liquidity,
interest rate less than 7 percent, and credit score, property type and
was able to set the amount of the loan condition, and the borrower’s industry
payments. experience. Mercantile Commercial
also applies logic toward transactions
Since then, Xerographic Digital and only pursues it if the deal makes
Printing – one of 50-75 small business sense, said Tony Zara, executive vice
clients Mercantile Commercial president for Mercantile Commercial.
has each year – has grown from
25 employees to 43, and its annual Most Mercantile Commercial
revenue has grown from $3 million to customers have annual revenue Xerographic took out a $2 million
$5 million. ranging from $500,000 to $10 million. SBA loan to constuct its building.