Lending A Helping Hand
Your Partner in Saving At-Risk Loans
Extensia Financial is proud to be the best credit union service organization (CUSO) for commercial real estate lending. We operate as a true partner by personally guiding CUs through the loan approval process. Likewise, if a good loan were to go bad, we’re an advocate for our credit unions, saving them significant time, money and resources.
What are the keys to our success?
One of our valuable resources is Extensia’s Senior Vice President Asset Management, Steven Ellsworth. With an extensive background in commercial banking – specifically managing workout loans – Ellsworth knows precisely how to turn around or dispose of problematic loans
“We look after it as if it were our money,” Ellsworth says. And this requires constant monitoring and quick reactions.
First, he knows how to review loans and spot potential red flags to proactively get ahead of issues before they arise. Second, when a loan is at risk of default, bankruptcy or foreclosure, Ellsworth proactively works with the borrower to avoid such outcomes. Additionally, he collaborates as a team with not only the credit union but also Extensia’s internal staff.
Ellsworth adds, “It’s a team effort, from top to bottom.”
Given these are larger loans with heftier financial implications, the objective is to mitigate or neutralize any loss to the credit union. When a loan goes bad, Ellsworth and team actively work to recoup the principal, normal interest, default interest and legal fees. Since most credit unions have limited means, just the legal fee (which can range from $25-$200k) can cause marked damage to them. Recouping the fees drives the CU’s success as well as our own.
“My whole goal is to maximize [the credit union’s] profitability,” Ellsworth says. “If I look at it from [the CU’s] unique perspective, I can determine how to maximize the income and minimize the loss.”
But Ellsworth doesn’t just focus on bad loans. Rather, he’s a supportive advisor to any borrower who needs it. He may help guide borrowers to a strategic payoff that ultimately makes the borrower’s finances more streamlined. Since every loan, borrower and situation is different, he caters to all the variables that exist, from loan maturity to the borrower’s personality.
Aside from the money saved in fees, interest and more, credit unions gain another widely valuable factor when partnering with Extensia: an extension of their team. Since most CUs are relatively small, they don’t have the capacity to employ their own CRE loan officer or workout officer. That’s where Extensia’s extensive expertise and team-centric approach becomes highly valuable. This not only makes credit unions more money but also saves them money on internal resources.
With every loan we save, credit unions consistently tell us they couldn’t have done it without our support and expertise. We take immense pride in that. And we understand the ripple effect of that is huge, because we’re not just saving thousands of dollars on a loan – we’re helping ensure credit unions can continue uplifting the community in which they serve.
About Our Lending Products
AVANA and Extensia Financial provides conventional financing to businesses in various asset classes. Our Commercial Real Estate loans range in size from $1MM to $30MM and amortization of up to 30 years.
Our SBA 504 1st Mortgage Loan is designed to help entrepreneurs acquire, renovate, build, or purchase commercial real estate. These loans allow the small business owner to own their building with a reduced down payment and still retain a low long-term fixed rate while preserving working capital that can be used to grow the business.
Our Commercial Construction loans support growing businesses and help preserve wealth. Our lending experts are there for every step and help guide large projects from start to finish. Our team takes the time to understand the complexities of your industry, market and project needs and helps communicate with third parties to make sure that your construction project is completed on time and within budget.
Extensia Financial is one of the most seasoned credit union service organizations (CUSO) focused on commercial real estate.
Our lending experts have a wealth of experience in the Commercial and Multifamily sector and can guide you through each stage of the process.
Our loans range in size from $1M to $30M and generally have terms of five to ten years with amortization of up to 30 years.