October 14, 2009

Is The London Manhattan Company a direct lender?

Except on a temporary basis, LMC does not act as a direct lender. Instead, we are an intermediary, locating the best alternative(s) we can find in the marketplace given your current financial situation.

What kind of fees will I have to pay to complete a financing?

You will pay fees to LMC and to the financing institution. LMC’s fee is due at the closing of the financing out of proceeds. LMC charges no up-front fees. As a result, we perform a complete financial review of your situation at our own expense to determine whether or not we can find an effective financing for you. Our fees are determined by the type of financing. The fees of financing institutions also depend on the type of financing. Call us to discuss the level of fees based on your situation.

How long will it take to put a financing in place?

The amount of time to complete a financing depends wholly on your current financial situation and the type of financing which best meets your goals. LMC has completed the financing process in as little as two weeks and as long as twelve weeks. The typical financing can be completed in approximately eight weeks.

What if no lenders are interested in making a loan to me?

It is very unusual for us to be unable to find a lender for a company which we choose to take on as a client. If this should occur, however, no fee is due to LMC. We work on helping you achieve your financing goals as long as it takes. That is our commitment to our clients.

What if I do not like the financing alternatives presented to me?

You are not required to accept any financing put forward by LMC. And if you do not accept a financing, we are owed no fee. Before beginning the placement process, we endeavor to determine the type and costs of a financing that are acceptable to you. We are very straightforward about what is and is not possible in the financing marketplace. Thus, you will know ahead of time what we think is possible, and we will know what you should find acceptable.

What are the steps involved in obtaining financing from The London Manhattan Company?

The first step is our detailed review of your financial situation often including preparation of our Financial Options Report, based on your Financial Information. Based on this review, either LMC will suggest a financing approach along with a working arrangement or we will tell you that we cannot be of any help, given your current financial situation. A typical financing follows this Financing Process.

What kind of working arrangement will I have with The London Manhattan Company?

Because we charge no up-front fees, LMC requires an exclusive contract be signed prior to beginning further work on your financing, after we complete our initial review. The usual term of the contract is 90 days. LMC is entitled to a fee for any financing originated by any party or closed during the term of the contract. Your financing is assigned to one of the senior people in our company who is responsible for communications with the lenders on the terms and conditions of their financing proposals to produce the most competitive offers.

Why should I deal with The London Manhattan Company which is not a direct lender?

Based on our daily interactions in the lending marketplace, LMC has extensive knowledge of the universe of lenders and providers of liquidity. In most cases, we are able to focus on a selection of potentially interested institutions. Our reputation for supplying deals that fit their lending criteria means that lenders respond rapidly to our requests for expressions of interest in a deal, shortening the time it takes to close the financing. Our selected lenders usually present you with more options on terms than you are likely to be able to develop yourself. For example, our lenders often provide more borrowing availability than a local bank on the same set of assets.

What are the costs to me of working with The London Manhattan Company?

You owe us a fee at the time of the closing and funding of the financing. You will be charged fees by the lending institution.

How and when do I pay the fee due to The London Manhattan Company?

You agree to pay us out of the proceeds of the financing at the closing. In most cases, these payments are made directly from the lender to us as part of the closing process.