Need a Line of Credit Due to a Cash Flow Crisis Resulting from the Change Healthcare Cyber-Attack?
MSSNY has arranged for designated teams at both Berkshire and Wells Fargo to assist you in securing funding quickly, thus streamlining the process and saving you time and effort.
Berkshire and Wells Fargo options are detailed below.
Berkshire:
Contacts:
Shane Rauh Sanya C. Lam
VP, Business Banking Officer VP, Relationship Manager – MyBanker
518-460-4217 Office 518-857-2027 Mobile
518-410-0255 Mobile [email protected]
Loan Type: On Demand Working Capital Line of Credit
Interest Rate: Floating at Wall Street Journal Prime Rate plus a spread up to 2.00%.
Purpose: Working capital support for delay in receipt of Accounts Receivables due to cyber-attack on clearing house.
Repayment Terms: Interest only with principal due on demand. Subject to a 30-day cleanup requirement.
Collateral: First security interest in all business assets. Collateral coverage of a minimum 1.00x.
Guarantors: Corporate guarantee of medical practice along with personal guarantees of principals with 20% or more ownership.
Financial Covenants: Minimum Debt Service Coverage Ratio of 1.20x to be tested annually.
Deposit Accounts: The finance offering is predicated upon medical practice establishing their operating deposit accounts with Berkshire Bank.
Required Information: Please contact Shane Rauh or Sanya Lam for list of information required to begin application process. Please use the link below to schedule a meeting if that is more convenience:
Wells Fargo:
Contact Sam Faltas, Senior Business Banking Relationship Manager
Mobile 201-280-6135|Fax 877-760-3550
[email protected]
| Feature | Business Line® of credit |
| Audience | Established businesses that typically:
· Have been in business 2+ years · Want access to higher line sizes and lower interest rates than other forms of unsecured credit |
| Typical use of funds | · Supplement cash flow
· Seasonal expenses · Inventory · Payroll · Growth opportunities · Taxes |
| Line amount | · $10,000 – $150,000
· Comes with up to 4 Mastercard access cards* |
| Rewards | · Earn rewards points on purchases made with the Mastercard access card*, then redeem for rewards like travel, gift cards, merchandise, and much more
· Earn 1 point for $1 in qualified purchases · Earn 1,000 bonus points for each monthly billing period that the company qualified purchases reach $1,000 or more · Earn a points credit (10% of redemption value) for online redemptions · Redeem points at Wells Fargo Business Rewards | Wells Fargo *Interest accrues immediately whenever the line of credit account is used, including purchases made with the Mastercard access card. |
| Collateral | None required |
| Interest | · Variable rate
– Prime + 1.75% to Prime + 9.75% – Rate applies to both cash advances and purchases · No grace period: interest accrues when funds are accessed |
| Repayment terms | · Revolving
· No fixed term |
| Fees See the Customer Agreement |
· No opening fee
· Annual fee, beginning year one: – $95 for line amounts $10,000 — $25,000 – $175 for line amounts > $25,000 · No foreign transaction fees |
| Optional features | Overdraft Protection for a Wells Fargo business checking account |
Application Process for Business line:
-
- Client Calls in, speaks with Sam Faltas
- Application is submitted on internal portal
- Typical decision is shared with applicant 7-10 business days after submission (IF No Additional info is requested)
- Upon approval, Line amount is made available within 10-14 business days
- Total process expected to be 15-30 days
| Feature | Prime Line of Credit |
| Audience |
|
| Description and typical use of funds | Revolving line of credit to support:
|
| Line amount | $100,000 — $1,000,000 |
| Collateral | Secured by business assets (non-real estate), consisting of accounts receivable, inventory, and equipment |
| Repayment terms |
* Interest shall accrue on the unpaid outstanding principal balance and is due monthly. |
| Origination fee | 0.50% of line amount, due at account opening and annual renewal |
Application Process for Prime Line:
- Client calls in, and speaks with Sam Faltas
- Items needed i.e. Tax Returns, PFS, Bus. Debt Schedule,W2’s, K1’s etc. are gathered
- Application is submitted on internal portal upon completion of package gathered
- Typical decision is shared with applicant 14-21 business days after submission (IF No Additional info is requested)
- Upon approval, Closing date is scheduled within 10-14 business days
- Once closing is completed Line amount is made available
- Total process expected to be 30-45 days
