[Christian]

I typically will sell whatever best fits my client's needs. Often times, that means making less money on a term loan. Having funded many 2-4 year term loans I've noticed something that I'm very curious to see how lenders handle. An incredibly high percentage (over half) of my clients end up taking out large second position advances behind these term loans, completely blowing the desired debt service coverage by the term lender. I suppose this isn't surprising, but I really am surprised by the fact that more than half of my term loan clients, do not qualify for renewals with their existing term lender (even with perfect payment history) due to stacking. And before anyone says it, I do stay in touch with my clients. They just lie to me and fund elsewhere because of my initial warnings about stacking. How will these guys survive when they can seem to fund repeat clients????

[funda21]

Who are you asking about in regards to term loans? They all have different policies