South End Capital Corporation is primarily focused on serving the needs of the un-bankable borrower and providing the most palatable terms possible. Noah Grayson is the managing director and founder of South End Capital Corporation, a nationwide, non-conforming lender (CA Finance Lenders License # 603 L334) providing collateralized and uncollateralized loans to business owners and real estate investors directly and in participation with third-party lenders. Below is our recent interview with Noah:
Q: Noah, tell us something more about the company and your history?
A: South End Capital Corporation (SECC) was founded in 2009 in the midst of one of the worst economic downturns in America’s history. Our objective was to provide reasonably priced capital in a capital-deprived market, to those business owners and real estate investors who were being shut out by traditional lenders. The economy is steadily recovering but our objective has not changed, since the vast majority of borrowers are still considered un-bankable. We are always improving our programs to keep pace with market demand, while honing our processes to ensure we provide the best possible customer service.
Q: How does South End Capital Corporation differ from its competition?
A: SECC is primarily focused on serving the needs of the un-bankable borrower and providing the most palatable terms possible (while still pricing for risk). We don’t plug borrowers into a pre-set underwriting grid and price their loans accordingly; we evaluate each application on its own merit. In that way we can provide a customized financing solution that truly helps the borrower meet a specific challenge or address a need. This means we have no set credit score minimum, no restricted business types, no collateral requirement, no set geographic restrictions and no hard loan size minimum. SECC consistently provides small loans to true small businesses that are routinely turned down by other lenders just because of their size and growth stage. We also communicate with the borrower over the long term and structure repeat or follow-up financing designed to help a business succeed going forward.
Q: Could you tell us something more about your Loan Programs?
A: Most business owners who have sub-par credit scores, past financial hardships, sporadic cash flow or no collateral believe their only option is an expensive Merchant Cash Advance (MCA). But SECC consistently provides bankable loan terms to borrowers who assumed they were un-bankable. We’ve assisted borrowers who were about to pay in excess of a 100% APR for a small $20,000 daily payment MCA, and we were able to provide them 10 or 20 times that amount at a 6-8% interest rate (monthly payment) via our Unrestricted SBA Program, or our Non-Conforming Real Estate or Business Term Programs.
In the past year, we’ve also expanded into the investment residential loan space. SECC has launched an aggressive program that allows anyone to purchase, rehab and rent or sell a residential investment property. Our residential fix-and-flip or bridge program has no credit score requirement (we don’t even pull credit), no experience requirement, no primary home ownership requirement, no income requirement (no financials) and no property cash flow requirement. Literally anyone is now eligible to be a real estate investor. The fix-and-flip program is currently available in 18 states (a listing is available on our website at www.southendcapital.com). Importantly, SECC can offer rates as low as 7%, and we can finance up to 90% of the property purchase price and 100% of the rehab budget for qualified investors. (Rates are higher and LTVs lower for less experienced borrowers.) For the buy-and-hold investor, we also offer no tax return / permanent investment residential loans across 42 states, with rates as low as 7% and terms that are fully amortized over 25 or 30 years.
Q: What are your plans for the next six months?
A: We will continue to ramp up our outreach effort, educating borrowers about our unique and specialized programs for the non-conforming borrower—a borrower who may not even be aware that such solutions exist in the marketplace. At the same time, we’ll be working to expand our investment residential fix- and-flip program across additional states, and we will focus on boosting the aggressiveness of our Unrestricted SBA and Business Term Programs, to help even more businesses grow and succeed.
Q: What’s the best thing about South End Capital Corporation that people might not know about?
A: I’d say that if you are a borrower who has been turned down by traditional and even non-conforming lenders, SECC may be a very real solution for you, and applying on our website is simple and straightforward. We actually exist to serve un-bankable borrowers and can often provide financing when no other lender is willing to. What’s more, we offer affordable terms! Additionally, many people don’t know that we pay generous referral fees to parties who refer prospective borrowers to us, and you don’t need to be a mortgage or finance professional to be compensated on referrals.Activate Social Media: