A Really Nice Fixed Rate for This Homestar Homecare Franchise Acquisition

Sep 27, 2024 | Business Brokers, Small Business Loans, Success Stories

Fixed Rate for Homecare Franchise Acquisition

Our bank almost always portfolios the loans they make so we are able to do things other banks won’t do. Most banks have to sell their loans in the secondary market because they are not as well capitalized. Because of this, they need to package their loans and make them marketable. That is why a lot of banks do not offer fixed rates, as variable rates are typically more marketable and profitable within that secondary marketplace.

Because we will be keeping this loan in our portfolio, we were able to do a prime plus 0.5 fixed rate for the life of the loan (10 years) on this franchise homecare acquisition. At this time prime is at 8.5% so this loan is fixed for the next 10 years at 9%. Most banks would be at prime plus 2.75% variable on this one.

So to put it in perspective the difference between 11.75% and 9% on $1M dollars for 10 years is over $150K in interest savings!
Not too shabby…so this buyer was very happy! This is what you can do when you are a very well-capitalized bank, you can offer attractive rates for the right deal and that’s exactly what we did here.

Time is the most valuable commodity we have, let’s not waste it!
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We Won't Waste Your Time

Let me be blunt. Here at Ivanhoe Capital, we structure deals to close and we don't waste you or your client's time. We want to get deals done and if we can't, we let you know RIGHT AWAY and WHY!

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