Term Loans

Term loans are used to finance longer-term needs and they are repaid according to an agreed-upon payment schedule. Term loans are offered in conjunction with a revolving line of credit and are typically used for acquisition financing.

For its line of credit clients, HFG may provide term loans secured by non-receivable assets.  These loans are primarily based on a multiple of EBITDA, typically up to 3.0 times. Pricing on term loans can be as low as 30-day LIBOR plus 5%, to as high as 15%, depending on the amount of EBITDA the borrower generates, the multiple of EBITDA the borrower is seeking to borrow, and the value of the collateral securing the term loan. Commitment fees on term loans are usually 1.50% – 2.00%.