Terms Sheet Explanation

COLLATERAL LOANS NJ: A TYPICAL TERM SHEET WITH EXPLANATIONS FOR YOU TO READ

Name of Borrower: usually a business but sometimes an individual
Name of Guarantor: an individual
Amount of Loan: self explanatory
Use of Proceeds: need specifics
Collateral: once again this is the asset(s) which we require to securitize the loan
Interest Rate: usually an annual percentage rate paid monthly which the percentage is determined by the collateral that supports the loan
Broker’s Fee: if a broker is used they normally get a fee
Origination Fee: this is a fee for all the leg work required before and after you have been pre-approved and choose to go forward in obtaining the loan
Loan Term: we normally write a loan at a minimum of 6 – 12 months with an option to extend up to a year
Prepayment Penalty: If a loan was written for a minimum term of 6 months and you wish to pay it off in less time, you will still be required to pay the total of 6 months interest.
Exit Strategy: this is most important where the borrower needs to have an exit plan when they first present their situation. The reason is to make the borrower aware that we do not wish to become a burden on charging higher interest rates for a longer period than anticipated. Remember, we are supposed to be a short term remedy for a long term cure.

Northeast Lenders is your source for secured collateral loans in NJ.