Banker Insight
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Cash Flow vs. TPP
How does the TPP affect the Bank's loan amount? This is a question commonly posed by Allstate Agents and Management alike. Simply stated, the TPP is taken into consideration but is not pivotal in determining the loan amount. If the TPP value of an Agency is $400,000, but the cash flow can only support $300,000 in outstanding debt, the bank will only lend the latter amount. At the same time, however, the bank will lend well over three times TPP if the cash flow supports it. In summary, the bank knows that the cash flow is what makes the monthly payment, not the TPP.
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Allstate Bank
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How will the sale of Allstate Bank affect their lending to Allstate agents? PPCLOAN is interested in hearing your response and other comments, which you can email to eric@ppcloan.com. Here are two articles, one from bloomberg.com, and one from wsj.com, that further explain Allstate Bank's situation.
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| AllstateForSale.com |
Refer to AllstateForSale.com to find updated agency listings in your area. With over 100 nationwide listings, AllstateForSale.com is quickly becoming a resource for agents to list and identify available agencies.
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Deal Highlights
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Outside Buyer in New Mexico
Purchased and merged two agencies totaling $3.6EP for 1.83 times. PPCLOAN was able to fund 100% of the purchase, plus and additional $25,000 for working capital.
Outside Buyer in Pennsylvania Purchased a $1.9EP agency for 2.33 times. PPCLOAN was able to provide $390,000 toward the purchase price with the buyer injecting the remainder of the capital needed as a down payment
Existing Agent in Indiana PPCLOAN was able to refinance and consolidate $1,250,000 in agency debt, lowering interest over 2 percentage points.
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CONTACT US
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Our Allstate Team is always available to assist your agents with their financing needs.
9303 New Trails Drive, Suite 375 ~ The Woodlands, TX 77381
Toll-free: 800.456.2779 | Phone: 281.419.0400 | Fax: 281.419.8309 | Email: info@ppcloan.com
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