Note from Lyle

Dear Business Owner,

Do you want to get the best interest rates available right now, at possibly no additional cost to you over and above the Bank’s one percent (1%) origination fee which is charged in one form or another? Did you know, if the Bank has no origination fee or only one quarter of one percent is charged, a higher than normal interest rate is probably being asked or some other hidden bank charges may be demanded after the loan is closed? If you are interested in low rates and deciphering the hidden costs of a loan, you should read on and see how I can assist you.

Interest rates may be going up in the near future. This is still a good time to either refinance or obtain new financing for your new project. To get the best interest rate and terms available you may need the experience of a professional loan consultant. A financial loan consultant knows how to analyze loans in the same way a bank does. Please do not accept the statement “no other bank will offer you any better interest rates or terms”. Being able to present the right financial data to a bank is very important to getting a good interest rate.

Knowing how a Bank is going to view your loan request and being able to see and know what their analysis is going to tell you before you go to the Bank is important to you. There is a very good possibility I will be able to put together the right factors to produce the best interest rates and other loan terms important to your business. With over 35 years of experience, I have been able to obtain interest rates ½ to 2% lower than what banks currently offer to general customers. Banks will try to get the best rates and best terms for themselves, and discourage you from going elsewhere to learn how to find better rates and terms for yourself.

Consider the following example as to the saving per year the interest rate can make on a 20-year loan of $3,720,000.00 at 10% and also at 9 1/2 % interest rate. The total payments for a 10% loan is $430,789.00 and the total payments for a 9 1/2 % interest rate loan will be $416,107.00 per year. This is a savings of $14,682.00 per year and over 20 years the savings is $293,640.00. The cost of a one-point origination fee charged only once for the entire term of the loan is $37,200.00. This one percent origination fee will be paid in 2 1/2 years; however, the saving of a 1/2% interest rate over 20 years, even after paying the 1% origination fee is $256,440.00. The difference in the interest rate of 9 1/2% and 10 1/2 % is 1 % and with a 20 year amortized loan the saving is $29,569.00 per year, which will pay off the one percent origination fee in only 15 months and the total saving in this example is $554,180.00 after paying off the one percent origination fee. The total saving in interest rates is so substantial, you cannot afford to accept any interest rate even ½% higher then is possible to get from any bank.

Think about the Prime

Other terms banks will charge on a continuous monthly and annual basis can amount to a ½% or more per year. Understanding these costs and eliminating them is part of my services.

The Prime Interest rate has come down this year and may now be going up steadily in the near future, and tightening credit requirements could create some problems in trying to get loans and refinancing. Banks will be looking for higher quality loans to hedge against a slow down in sales, profits and cash flow for repayment of their loans. As banks become more selective in their loans, because of the above and become highly loaned up, you may need the knowledge and experience of a professional loan consultant who works with somewhat difficult loans to place with a bank. Since I work with most all the banks in South Dakota and some banks in other states, it’s my business to know which banks are loaned up and now looking for a particular type and quality of loan.

Keep in mind, when you go shopping for loans and interest rates, each bank will be checking your credit report. This will tell the banker what other banks you have already interviewed with for your loan. This information may not be of real help to you, but rather a detriment. With your cooperation I can avoid unnecessary credit reports being obtained on you and your business. The more banks turning you down, the more difficult it is get the right loan. A professionally prepared loan application includes a full bank credit analysis, limiting the banks you interview to just those banks willing make a commitment for the loan you need.

The size of the bank can be of real importance to you, as smaller banks may need to go to correspondent banks for funding of a particular type and size of loan. These correspondent banks may point out potential problems, which could delay approval or get the loan declined. Knowing the right bank to go to is important to getting the right loan for your business. All information and data received is kept confidential.

Being able to get the best financing and interest rate takes time, knowledge and experience. I will keep all financial data in strict confidence. My work involves processing and analyzing the loan application to make sure you receive the best terms available from any bank. Since I work with all banks, I have knowledge of each bank’s loan limits, its interest rates and terms available. This will be helpful in getting the loan placed with the right bank.

I also process SBA loans and Rural Development Business and Industry loans. The cost of servicing and guarantee fees for these loans can be considered high. However, a bank can make most of these loans without the high guarantee fees. But you do need to know which banks are capable of approving these loans and have experienced loan officers who can analyze the risk.

My References are available upon request. Call 605.338.9566 or e-mail me today for more information:


Lyle B. Benson

Loan Consultant