Lexington Capital provides short term loans to small businesses. As a specialty lender, Lexington is able to benefit from opportunities created by overly restrictive government regulation of Federally insured banks. Because Lexington takes no Federal funds, we are able to quickly provide capital for commercial, asset backed loans to our creditworthy clients. We help our clients seize profitable business opportunities that they would otherwise miss due to restrictive commercial lending policies.
Opportunity: Overly restrictive banking regulations preclude most small businesses from borrowing from traditional banks. While traditional banking institutions can provide inexpensive capital (interest rates 4-6%), there are serious hurdles to accessing that capital. Even for those small businesses that can clear these hurdles, the agonizingly slow application process required to comply with Federal regulation often makes the use of these traditional banks unrealistic. Traditional banking institutions can take up to 12 weeks to approve a loan, and the profile of the commercial borrower has to conform to stringent policies and standards. Also, traditional banks prefer large commercial loans, and shy away from the small commercial market. Here in lines the opportunity for Lexington to assist the non-traditional borrower in obtaining financing.
Lexington is not bound by these unrealistic and unduly cumbersome regulations. Further, the Lexington Underwriting System utilizing the latest technology not only speeds up and streamlines the application process, but also provides a deeper and more comprehensive view of a potential borrower’s creditworthiness.
Speed: Lexington can complete underwriting within 2 weeks of receipt of a completed application. A speedy yes or no is of great value to this underserved market.
Flexibility: Unlike traditional banks, Lexington has the flexibility to review each loan on its own merits. For qualified borrowers, Lexington does not have to confirm to a standard profile, but instead can access the true profile of a borrower’s credit, collateral and ability to repay the loan. We are able to quickly and thoroughly assess the true commercial profile and risk of a borrower.
Size: Lexington’s loans vary from $50,000 to $1,000,000 with the average size loan currently being $350,000. This is an incredibly underserved and neglected market.
Market: Because the small business market is underserved, there will always be more applications than funds. As such, Lexington is able to “cherry pick” the best loans in the small business market.
Short Term: Lexington works hard to help its borrowers become “Bankable” and access lower interest rates. This obviously benefits our borrowers. But it also benefits Lexington. Lexington does not charge pre-payment fees. By helping our borrowers pay us back early, we are able to place more loans per year with the same funds. This allows us to increase Lexington’s return without increasing the interest rates paid by our borrowers.
Respect: Lexington is a small business serving small businesses. Our commercial borrowers are underserved and even perhaps neglected by traditional banking institutions. Lexington courts these neglected borrowers. We help them seize the opportunity to finance their small businesses. For many entrepreneurs, small business ownership represents the true American Dream. For hardworking, creditworthy small business owners, Lexington makes that dream a reality.
Banking Relationships: Lexington has a strong network of relationships with bankers throughout the Country. Banks do not see Lexington as a competitor as they do not wish to service the market that we target. Further, we help bankers not only preserve their deposit relationship with small businesses but we also provide future lending opportunities for banks once we help our Borrower become “Bankable.”