Deferred Product Options.
When you’re just starting out, cash flow can be tight. We want to help the next generation of forestry professionals get into the industry and succeed. Our deferred loan structure gives you the flexibility to defer principal payments to a future date. Whether it’s for a month or two, or a little longer, we’ll work with you to rework payment terms that’ll ensure you can manage your cash situation and focus on establishing and growing your new venture.
A deferred loan structure has been developed for general cash flow situations that require a principal deferment. In these situations, the TLB will consider applications with interest only payments for up to 5 years. This loan could, for example, be amortized over 26-30 years, (to establish an interest rate) with a 5-year deferral of principal followed by 21-25 years of blended payments.
Another option is a complete payment deferral on a major portion of the above loan for 3 years. The accrued interest from this 3-year period would be added to the principal at the end of the 3-year period and the client would make interest-only payments in year 4 and year 5; and commencing full blended payments in year 6.
The cash flow effect is very significant—for example, borrow $1,000,000 today with a 5-year term, have no payment on the first $500,000 for 3 years and interest-only for the last 2 years of the term. Pay interest-only on the other $500,000 for 5 years. In year 6, fully-blended payments would commence on the original loan plus the 3 years of accrued interest (the new principal amount).