FAQ

Berma Capital Corporation

Questions & Answers

Berma Capital Corporation

Q: How long has Berma Capital Been in Business?

A: The company was formed in Los Angeles, Ca. in 1976 and will have been in business for 40 years October of 2016.

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Q: How long has the company been based in the Chicago area?

A: The company came from Los Angeles and moved to Chicago in November 1985.

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Q: What is the maximum and minimum loan amount served by Berma Capital Corp.?

A: The area between $5.0 million and $800.0 million is the area where we function the best. The minimum loan we consider is $5.0 million.

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Q: What loan types do we consider?

A: The company is best suited to these areas:

  1. Term loans for acquisitions, working Capital, R&D, expansion, purchase of equipment, etc.
  2. Equipment Financing.
  3. Real Estate finance, re-finance, construction & acquisition.

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Q: In what geographical area does the Company do business?

A: Berma Capital Corp. does business internationally.

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Q: Does Berma Capital consider the financing of Start-Up companies?

A: Normally we do not get involved in Start-ups but there are some acceptations, which occur rarely.

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Q: What areas of business does the company shy away from?

A: Factoring of receivables, new construction, raw land, infrastructure and service companies (law firms, accounting firms, financial advisors, etc).

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Q: Should a loan be confirmed is collateral required?

A: Yes, as a normal course.

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Q: What is the normal loan to value on Collateral?

A: Normally it is 80 to 85%.

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Q: What is a debt coverage ratio?

A: It’s a ratio between Net Operating Income and the debt service.

It is used to determine profitability after paying debt service.

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Q: Does Berma Capital consider short-term loans; bridge loans, 6 months, 1 year or 2-year loans?

A: No, because there is not a sufficient return on the funds loaned.

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Q: What are the general loan terms for financing?

A: Generally, the loan terms are 2 to 10 years.

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Q: Does the Company provide financing for 2nd mortgages?

A: No, we do not consider 2nd mortgages.

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Q: How long does it take to process a loan?

A: It varies depending upon the complexity and loan type. Real Estate takes about 30/35 days. Term loan takes about 20/30 days and leases take about 14/20 days.

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Q: What are the major criteria for securing financing?

A: Customer should show security to the loan by providing the ability to repay debt, some form of tangible security and good credit standing.

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This is a test?

yes!

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