Term Loans in Manhattan: Rent Comes First

Start with rent, because everyone else does

A Manhattan business usually has three fixed costs before any funding: rent, payroll and utilities. Rent is the biggest, and for larger tenants there is also a city tax tied to it. Under the city's published guidance, the Commercial Rent Tax applies to tenants in Manhattan south of 96th Street whose annualized base rent is $250,000 or more. The headline rate is 6 percent, reduced by a 35 percent base-rent reduction, for an effective 3.9 percent. Confirm the current thresholds with the city, as they can change. If that applies to you, it belongs in your fixed-cost total.

The fixed-cost stack

Add the four, then compare with your lowest month of deposits in the last year. If they do not fit with some room, shrink the project.

What Manhattan owners buy with a lump sum

• A restaurant kitchen rebuild or ventilation upgrade.
• Office or clinic equipment for a professional practice.
• A showroom or retail fit-out in a leased space.
• A vehicle or equipment package for a service business.

Space is expensive, so the question is nearly always whether the extra capacity will fill. Estimate from your own bookings, not from the best week you remember.

A short example, for illustration only

A Midtown dental practice wants $120,000 for two chairs and imaging. The owner counts unused chair hours today, estimates how many would fill in a realistic scenario, and checks the payment against that, with rent and staff costs included. If it works at half the optimistic figure, the plan is solid. These numbers are invented and are not our terms or a typical outcome.

Questions that save time later

Before you apply, check three things with your landlord and your accountant. First, whether your lease has any clause that restricts alterations or equipment installation, because a fit-out you cannot complete is money wasted. Second, whether the Commercial Rent Tax applies to you. Third, what your lowest month of deposits looked like last year. With those answers you can pick an amount you will not need to revise, and you can answer a funder's follow-up questions the same day. Speed in the process comes mostly from having the facts settled before you start.

Applying

We fund $25,000 to $5,000,000, with funding in as little as 24 hours once the file is complete. FICO 500+ is considered; the credit pull is soft; about three months of business bank statements; no tax returns. Sole proprietors can apply. We do not publish rates or term lengths on this page; the offer states them. Start the application.