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WHAT YOU NEED TO KNOW ABOUT CHARTER SCHOOL FUNDING
Commerical Markets & Money Sources
Understanding the Costs in Getting a Loan
Some Basics in Applying for Funding
Tips to Remember when Applying for Funding
COMMERCIAL MARKETS
In this discussion, we will only address commercial sources of money. These sources include:
Banks
Banks are a primary source for short term working capital lines. They can also be very useful for intermediate term equipment loans, construction loans and longer term mortgage loans. They are typically the most conservative in terms of loan to value ratios and term for fixed rates. They usually are very competitive as to costs and interest rates.
Real estate investment trusts
Primarily useful for long term mortgages and construction loans
Bond underwriters
These companies raise money for long term needs such as buildings and campuses by selling bonds to investors. Their costs are sometimes higher than other sources but their terms and conditions are more liberal than most other sources.
Insurance companies
They can be a source of mortgage funds that usually are accessed by mortgage loan companies and banks. They are usually among the more conservative lenders in terms of their underwriting parameters and loan terms.
Leasing companies
They are an excellent source of funds for equipment, furnishings, fixtures, busses or any intermediate term asset. They are usually relatively aggressive in their credit parameters and will provide 100% financing. Their rates are generally higher than banks.
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