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Charter School Business

May 2008 Newsletter

FINANCING ADVANTAGES…

BY Rick Van Alfen

"The primary advantage of using the USDA program with a bond offering is that it provides 30-year fixed interest rates instead of 20-year variable interest rates."



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Sunday, May 11, 2008





Providence Financial Co., Inc. performs a vital service to all of the parties in a loan transaction.

We are far more than a broker, we take a great interest in consulting with and assisting all of the participants in order to secure the best service, structure, rate, terms and covenants that will maximize the benefits that each individual entity is trying to achieve.

THE CLIENT: Most clients will require debt funding to build their projects. PFC will utilize it's network of preferred financial sources to arrange a construction loan and permanent funding through a selective bidding process in order to obtain optimal terms and rates for the client. If the client knows a lender that is interested in the project, PFC will gladly work with them also and include them in the comparison matrix. PFC also offers the client the advantage of one point of contact to coordinate the often frustrating and complex job of providing the bidding lenders the information they require. With almost thirty years of experience in most aspects of commercial funding, PFC is highly qualified to handle the client's funding needs. We can find the best terms for our clients and save them time and frustration.

THE VENDOR: No vendor's sales would be very high without funding for the projects he builds or sells. It is usually a hit and miss proposition at best to rely on their clients' abilities to arrange funding. It is of immense value to a vendor to have a reliable financial partner who knows the markets and lenders with whom he can arrange timely funding for their clients. Through this relationship, the vendor closes sales that otherwise might have failed due to lack of funding. We know how to help you realize higher sales with fewer funding related problems resulting in greater profitability.

THE LENDER: Lenders generally have more loan requests than they have time to adequately consider. It is a great help to them to receive requests that are professionally prepared and complete. It significantly eases their time and workload burdens to know that the information they are getting is accurate and well organized. Further, we prescreen projects and do not waste a lender's time on proposals that do not fit their lending parameters.






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