SBA Loans Gaining Ground In Self-Storage Financing

Self-Storage Financing

After more than 20 years in self-storage manufacturing, Terry Campbell left to bring a different product to the industry — Small Business Administration (SBA) loans.

In March, Campbell joined Wilmington, NC-based Live Oak Bank, a preferred SBA lender for several niche industries. Campbell was tapped to lead the bank’s new self-storage division. Before his new role, Campbell directed sales and marketing at a self-storage building manufacturer.

SBA loans weren’t available to the self-storage industry until five years ago, and Campbell said they’ve been underused because many banks aren’t knowledgeable about self-storage. The SpareFoot Storage Beat spoke with Campbell to learn more about self-storage SBA loans.

Read Full Article here:

What Happens During the Loan Application Process?

Funeral directors often ask us about the loan application process. What is required to apply for financing and successfully complete the process? How long will it take to receive funds? Whether you need financing today or are hoping to gain a better understanding of the loan process to plan for future needs, it is important to know what to expect from application to closing.

Depending on the financial institution you choose, the process and the time it takes to receive funding may vary. Generally, once the loan application and all related documents are submitted to the bank, the rest of the process can take anywhere from two weeks to six months. The timing may vary based on the bank’s experience with funeral home loans, the borrower’s responsiveness in submitting the necessary documents, and the accuracy and completeness of information collected. At Live Oak Bank, our funeral home lending team works solely on funeral home loans and understands the intricacies of the funeral business, which makes the process smoother.

During each phase of the loan process, a borrower will work with different members of the loan team. The three stages of every loan are application, underwriting and closing.


In the application phase, a loan officer will work with you directly to gather all information needed to prequalify your loan request. First, you will discuss your plan for the loan proceeds. Are you looking to refinance existing debt? Are you looking to acquire a funeral home or expand your current operations? If you are buying or expanding, have the purchase price details available. The lender will need to understand your business and your plans for the future to submit a complete loan application. During the application phase, be prepared to present the following information to your lender:

-Describe your new and/or existing business and the local market. It will be important to understand the competition in the area, as well as the local demographics. The lender will also need to know about your experience in the subject business and the funeral industry.

-Discuss present revenue breakdown and anticipate future revenue and trends. What percentage of the revenue comes from traditional services, cremations, merchandise sales, etc. This information will help the lender better understand your business.

The application includes items such as corporate tax returns, current financial statements and annual call volume as well as your contact information, resume and personal tax returns.

Once all the necessary documentation is submitted, Live Oak Bank is often able to send you a loan proposal in 24 hours. After the proposal is accepted, you will move into the underwriting stage.

What is Cash Flow? | Managing Existing Debt

What is Cash Flow? Pt. 5
Managing Existing Debt

Another way to improve cash flow is to look at the current business debt because the terms of a loan can greatly affect cash flow. A balloon payment (a large single payment required at the end of the term to repay the remaining principle balance of the loan) has a dramatic impact on your cash flow when it is due. For example, a loan with a ten year amortization and a five year term will balloon in five years, requiring a) the remaining five years of principle to be repaid at the end of the term or b) the loan to be refinanced. A loan with a balloon can leave the borrower at risk for higher interest rates when the term ends.

What is the loan term or the period of time over which your loan is to be repaid? Shorter loan terms naturally have higher monthly payments. What is the interest rate on the loan? A higher interest will also increase the amount of cash leaving the business each month.

Refinancing current debt on your loan may be one way to improve your cash flow. Seek a loan with a 20-25 year term, no balloon payments and competitive interest rates. By comparing your current monthly payment to what your new monthly payment could be, you can see if refinancing will free up cash for your business. These monthly savings provide an opportunity to make improvements to your funeral home, to increase marketing efforts or expand your business.

For example, by taking advantage of Live Oak Bank’s competitive rates and 25 year amortization, one of our borrowers was able to save $9,850 per month on a $1,300,000 loan. With savings of $118,200 per year, our borrower was able to increase advertising efforts as well as make much-needed improvements to his facilities. While your situation might be different, you may still be able to capitalize on superior loan terms.

Understanding your business’s cash flow will help you determine the degree to which it needs to be improved. By taking the necessary steps to find savings and create guidelines for your business, you can increase the financial strength of your funeral home.

Build Your Dream Veterinary Practice

Build Your Dream Veterinary Practice: How Proper Planning Can Make It Happen

Presented by: Brian Faulk, Live Oak Bank, and Kelly TerWisscha, TWC

The experts from Live Oak Bank’s veterinary lending team and TWC combine their experience to walk you through what to expect and prepare for your veterinary practice construction project. This comprehensive approach connects the design, build, and financing. Whether you are in the planning stage or the middle of the process, this talk will provide you with the steps to take to ensure a successful build.

Download a copy of webinar presentation: Build Your Dream Veterinary Practice



What is Cash Flow? | Managing Receivables

What is Cash Flow? Part 4
Managing Receivables

Once you’ve created a budget, it’s time to look for ways to bring and/or keep money in the business. One very important aspect of cash flow is collecting receivables in a timely manner. Take a look at how long you have waited for payments historically. What is your approach to collecting payments?

Given the nature of the business, you will encounter families in various financial situations. The service and care you provide is of utmost importance not only for the families but also your business’s reputation. With that understanding, it is equally as important to the health of your business to have an approach or policy in place to collect payments. Understand how long can you wait for payments until it affects your cash flow. It is important to give this policy careful thought and drive consistency the best you and your staff can.

Along these same lines, you will want to understand the impact of trust and preneed accounts. In these contracts, the earnings are accumulated until the contract holder dies. Therefore, the earnings are not an immediate effect on cash flow until the services are rendered. That is to say, the trust and preneed insurance policies play a very important role in the future revenue stream of the funeral home. While important to future, the impact on today’s cash flow is dependent on your state’s statutes.

Live Oak Bancshares, Inc. Files Registration Statement for Initial Public Offering

Wilmington, N.C.June 22, 2015 – Live Oak Bancshares Inc., parent company and registered bank holding company of Live Oak Banking Company, a national online banking platform for small business lending, today announced that it has filed a registration statement on Form S-1 with the Securities and Exchange Commission (SEC) relating to the proposed initial public offering of its common stock. The number of shares to be sold and the price range for the proposed offering have not yet been determined. Live Oak Bancshares plans to list its common stock on the NASDAQ Stock Market under the ticker symbol “LOB.”

Sandler O’Neill & Partners, L.P., Keefe Bruyette & Woods, Inc. and SunTrust Robinson Humphrey, Inc. will act as the book-running managers for the offering.

A registration statement relating to these securities has been filed with the Securities and Exchange Commission, but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time that the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The registration statement Live Oak Bancshares has filed with the SEC can be obtained by visiting EDGAR on the SEC website at

The offering will be made only by means of a prospectus. When available, copies of the preliminary prospectus may be obtained by writing to Sandler O’Neill & Partners, L.P., Attn: Prospectus Department, 1251 Avenue of the Americas, 6th Floor, New York, New York, 10020; emailing or calling (866) 805-4128, writing to Keefe, Bruyette & Woods, Inc., A Stifel Company, Attn: Equity Capital Markets, 787 Seventh Avenue, 4th Floor, New York, NY 10019 or calling (800) 966-1559, or writing to SunTrust Robinson Humphrey, Inc., Attn: Prospectus Department, 3333 Peachtree Road NE, 11th Floor, Atlanta, GA 30326; emailing or calling (404) 926-5744.

— Download Release

Micah Davis
Marketing Director
Direct: 910-550-2255

Lasertron FEC center to open in Henrietta

Check out the latest news from our FEC customer, Jim Kessler who is under construction for a Lasertron FEC in Rochester, NY. Construction started three months ago, and more than $4.2 million will be invested in the new business. Lasertron will provide guests the option of playing in two giant multi-level laser tag arenas. A session is comprised of four six-minute games played back to back, and the Kesslers say players can burn up to 1,000 calories when playing two sessions.

Read the full article here: Lasertron Center to Open in Henrietta

How We are Different from Traditional Lenders

With over 60 years of experience in poultry financing, it’s clear that we are devoted to both the industry and the loan process. Industry knowledge and lending expertise are just two of the benefits of working with Live Oak Bank.

So how are we different?

1. Our loan terms set us apart from any other lender. We can lend up to 5MM over a 25-year period, which allows our borrowers greater cash flow.

2. We know the industry. Our team has decades of industry expertise and can answer your questions thoroughly. Whether you are looking to build your first house or refinance your existing farm, we will assist you in every stage of the process.

3. Our in-house construction team is there from the first draft of paperwork to the first step you take into your new chicken house. Each member of our construction team is proactive and will help you throughout the entire building process.

4. We make sure to meet every customer and stick with him or her throughout the building and growth experience. Live Oak Bank also provides a dedicated person who tracks grower flock reports, revenues and expenses to provide better data to poultry growers.

5. Our technology platform, Portal, allows us to make communication and the loan process simple and transparent. With Portal, the application process is simplified, and there is minimal paperwork. Our loan officers, underwriters, and closers are available to assist you with any questions or concerns.


Veterinary Practice Financing: Real Estate

What You Need to Know About Veterinary Practice Financing

One opportunity for an owner to best position the business and increase future wealth is to own the building where the practice is located. In recent years, commercial real estate values have reset and many commercial properties have become available and more affordable. Consequently, a number of owners have taken advantage of the opportunity to become their own landlord.

Purchasing an existing building, building a facility or remodeling a practice are generally easily financeable, and banks often provide 100 percent financing for such a project. It may be helpful to include real estate in a business loan, whether it is an acquisition, expansion, refinance or startup. Including real estate in a loan will allow the bank to lengthen the term. Real estate loans are generally termed over 20 to 25 years, making payments very affordable.

North Bay Business Journal Features Roger Stockton

North Bay bank features Roger Stockton, Small Business Administration loan officer, including his favorite SBA lending stories, and recent bank news.

Significant news at your bank: Live Oak Bank announced a new lending division in January 2015 offering financing to the Wine and Craft Beverages industry. After extensive industry research, Live Oak Bank assembled a team of lenders and industry experts to address the need for financing to wineries, vineyards, breweries, distilleries and ancillary businesses in this space. Live Oak Bank can provide funding for acquisitions, successions, partner buy-ins/outs, expansions, operating capital, refinances, loan payoffs and real estate.

Learn more about Roger Stockton and his SBA lender profile.