BANKING AND COMMERCIAL LENDING

Historically, a number of financing alternatives have been available to businesses, but the recent growth in competition among lending institutions has increased the available alternatives and offered more innovative approaches.

Many business people today are familiar with the basic forms of loan packages available to them, but most lack a full understanding of the legal implications of the provisions in complex loan documents. Counsel from an attorney experienced in commercial lending can help you:

• Determine which lender offers the best financing package for your needs;
• Limit liability of the borrower, its principals and affiliates;
• Limit the lender's recourse against the borrower and its assets;
• Negotiate the best "price" of the loan, including interest rate, fees, administrative costs and related expenses;
• Avoid unnecessary limitations on management, transferability and changes in operations; and
• Negotiate the most reasonable terms, covenants, warranties and conditions possible.

Financing Options
Amer Cunningham Co., L.P.A., has extensive experience with financing methods. Here are a few that have been used successfully:

• Term loans
  The most traditional form of financing, used primarily for fixed-asset purchases. Can offer fixed or floating interest rates or conversion options.
• Revolving-credit loans
  Also known as lines of credit, these loans provide operating capital and are usually extended on a floating-interest basis, but can in some instances have fixed-rate options. Floating interest-rate indexes now being used include U.S. Treasury rates, foreign money market rates and commercial paper rates in addition to the traditional "prime rates" used by banks.
• Letters of credit
  Letters of credit are issued by lending institutions to assure payment of specific obligations of a borrower and are used as a part of special transactions with vendors or other creditors or in connection with note or bond financings. Letters of credit can be issued under separate arrangements with a lender or can be included as a permissible carve-out of a revolving credit facility.
• Tax-exempt financing
  The availability of these options, including industrial development revenue bonds and health-care facilities bonds, differs from time to time. They normally involve a credit-enhancing letter of credit from a bank to facilitate marketability. Tax-exempt rates and letter of credit fees together afford significant savings when compared to conventional financings that are not tax-exempt.
• Taxable note financing
  Often used in larger term financings, this may be backed by a letter of credit to enhance marketability of the issue. This arrangement enables the borrower to take advantage of lower interest rates available in the commercial paper market.
• Construction loans
  Construction loans are designed to provide capital to a borrower while a facility is being built. These loans provide for periodic advances for payment of construction costs on an interest-only basis during the construction period.
• Government loan programs
  There are a number of federal, state and even local loan programs offered by agencies, such as the Small Business Administration, that provide low- interest loans to borrowers who will create additional jobs.
• Restructuring and workouts
  When cash flow cannot satisfy existing debt service requirements, the loan packages can often be reworked in order to fit within cash-flow limitations in order to avoid defaults, interruptions of business and possible bankruptcy. Experienced counsel is crucial in negotiating restructurings and workouts in order to assure that the borrower gets the best possible opportunity to get back on its feet.

Knowledgeable Counsel
Amer Cunningham Co., L.P.A. can provide you with the experienced counsel you need to determine what financing packages will be the most beneficial for your business and to negotiate the best terms for you.

We offer:

• Broad knowledge of the law
  Our familiarity with the legal framework will help you obtain the best deal possible.
• Familiarity with lending institutions and placement entities
  We have established ongoing relationships with most of the lending institutions in Northeast Ohio, and many of the larger lending institutions across the United States. We have dealt with and are familiar with banks, savings and loans, insurance companies, brokers, underwriters and financial advisors who can make the most beneficial financing package available to you.

Our Approach
To help you obtain the best financing possible for your business, we are:

• Comprehensive
  We help you insure that the financing terms fit with your business and that the loan structure benefits rather than limits your business, flexibility and opportunities.
• Detail-oriented
  We know how to work through all types of loan documents with particular attention to the details that could pose problems later.
• Cost-conscious
  We assist you in limiting expenses involved in your loan, both at closing and during the life of the loan.

Let Amer Cunningham Co., L.P.A., help you obtain the best loan available on terms most favorable to you.