Investors all of the nation are snapping up investments as quickly as they become available. The Atlanta Business Chronicle reports that more deals below $5 Million are getting financed than larger transactions.This could be due to either most of the sub $5 Million dollar loans are getting government backed loans. Or maybe banks are able to go off personal networth, inidividual profit and loss as well as tax return income.
Whatever the case, most larger transactions go off of leaverage and rairly have income covering them. This is why there are so many problems with large finance deals. Smaller deals represent less risk for lenders; in some casess the individuals borrowing are worth more than they are requesting.
It's easier to get financing on a smaller loan, so it only makes sense that we'd see more deals below $5 million. Plus, I believe SBA kicks in below 5 right?
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