Updated almost 11 years ago on . Most recent reply
Questionable Smallprint in Term Sheet
I'm speaking with a commercial lender for a package of smaller SFHs, and as collateral in case of default, he wants:
1. First mortgage and assignment of rents on multiple residential properties
2. First position lien on all business assets (including but not limited to accounts, inventory, equipment, and general intangibles) owned by the borrower
This sounds very hefty to me. I have confidence in my properties and I am not worried about defaulting, but it seems like a lot to be asked for. Is this customary when dealing with commercial lenders? I know he is protecting his employer, but I feel like I'm swimming in a shark tank. Thoughts?