Business Financing

Not all businesses are the same. Thus, not all debt financing is the same and pricing is different for every business situation as the difficulty of procurement and the terms of financing differ greatly based on a client’s financial situation. Additionally, short term debt financing is often sought when businesses are either having difficulty or when business expenses are outpacing business revenues. However, HomeStart has offered a standard pricing structure of 3.5% of the funds procured to simplify this for clients, based on the conditions and structures listed below. The price for business loans that are procured by HomeStart is based on the amount for which the client is approved and payment for approval/procurement is due according to the Consulting Fee & Indemnification Agreement the client must sign, which can be previewed here. Additionally:  

1. For all debt financing, “funded” means procured. Procured means approved and in the case of a Letter of Intent, preapproved.

2. The issuance of a Letter of Intent for a Line of Credit or other financing constitutes procurement of the financing.

3. Short term debt financing is priced based on the gross amount offered and not the net amount funded as fees can be withheld from wires by the lenders and by outgoing and receiving banks.

4. Line of Credit financing is priced based on procurement amount and not on when or how much of the line the client uses. Thus, the cost of a $100,000 Line of Credit is $3,500.00 and payment is due as soon as the line is procured and not when the client gains access to it (based on completing standard payment, reconciliation, due diligence or contractual conditions). Thus, when the client takes draws, how much of the line the client uses or whether or not the client needs the Line of Credit in the future are all immaterial to the cost of procurement of the Line of Credit. HomeStart almost always succeeds at procuring Lines of Credit for those clients that want them, so payment for services rendered is immediate provided a Letter of Intent is secured for the client.

5. Hybrid debt financing solutions like the combination of short term debt financing and a Line of Credit are priced according to the conditions and explanations above, meaning the cost for hybrid debt financing solution is all due when the financing is procured and not when the client accesses the Line of Credit, what portion the client accesses, when access is granted or whether or not they need the entire line (or any portion) for which the client applied.

6. Based upon HomeStart’s sole discretion, if hybrid debt financing is approved and the short term debt financing is less than 20% of the Line of Credit, the client may pay 16% on the amount of the short term financing as soon as the net amount is wired to the client and 2% of the Line of Credit when the client gains access to the Line of Credit. This situation can occur if an investor wishes to “test the waters” and makes access to the (pre)approved Line of Credit conditional based on client performance or other contractual conditions. This allows clients with more difficult financing a way to both secure the financing they need without the cost of financing eating up too much of the short term debt financing procured.

The price HomeStart charges for debt financing that is extremely difficult to obtain