GE Capital Solutions, Franchise Finance Closes Interest Only Loan.

Holland Holdings, LLC Uses Loan to Increase Cash Flow

SCOTTSDALE, Ariz. -- In order to help Holland Holdings, LLC increase its cash flow, GE Capital Solutions, Franchise Finance funded a $2 million interest only loan on a 1031 exchange property.

"The deal was approved and ready to fund in less than 20 days because of our knowledge of credit tenant real estate deals," says Michael Larsen, vice president, GE Capital Solutions, Franchise Finance. "This loan enables a borrower to substantially increase cash flow in the first two to three years at a fixed interest rate before it converts to a permanent loan with the same fixed rate."

The GE Capital Solutions, Franchise Finance interest only loan currently is available to quick-service and casual dining restaurants, as well as auto after-market stores.

"Cash flow is critical for income producing properties, particularly during a startup," says Larsen. "With an interest only loan, the borrower can potentially double cash flow because there is no principal reduction. With a fixed interest rate for the life of the loan, it also reduces the uncertainty of operating during market fluctuations."

While many lenders offer interest only loans, it is important for borrowers to consider more than just the terms when choosing where they will obtain financing.

"We sell execution and reduced costs," says Larsen. "Our market knowledge of the strengths and weaknesses of our customer's industries enables us to quickly evaluate a loan application, make a decision, and close it within days if it meets our criteria. Not every lender can do that."

Funding a loan in a timely fashion is critical in credit tenant financing, according to Steve Himmelfarb, president, Himmelfarb Commercial in Washington, D.C., who represented Holland Holdings during the loan process.

"I was very pleased with how quickly GE Capital Solutions, Franchise Finance executed this loan process," he says. "Additionally, the cost of underwriting was a very good value and lower than competitive lenders. Sometimes borrowers tend to overlook the real cost of a loan and focus only on interest rate. That can be a very costly mistake."

Since Holland Holdings took advantage of the interest only loan, a total of $20 million has funded and another $10 million is expected to close by the end of the second quarter. Visit www.GE1031.com for more information.

GE Capital Solutions, Franchise Finance is a leading lender serving customers in the restaurant, hospitality, branded beverage, automotive after-market, and power sports industries. It provides financing to help franchisees and franchisors grow, compete, and prosper. It offers access to capital with a diverse array of flexible financing options, including funds for purchasing real estate or equipment, new construction or remodels, acquisitions, or refinancing.

About GE Capital Solutions, Franchise Finance

GE Capital Solutions, Franchise Finance is a leading lender for the franchise finance market via direct sales and portfolio acquisition. With more than 30 years of experience and $11 billion in served assets, we serve more than 6,000 customers and more than 20,000 property locations, primarily in the restaurant, hospitality, branded beverage, power sports and automotive after-market industries. We offer customers access to capital with a menu of products featuring flexible structuring, including financing for acquisitions, refinancing, construction of new units and remodels for single- and multi-unit operators/chains. More information is available at www.gefranchisefinance.com or by calling toll-free 866-GET-GEFF (438-4333).

GE Capital Solutions provides leasing, lending, and capital investment products and services to help business customers grow. It has more than $90 billion in assets, serves more than a million clients around the world, and is headquartered in Danbury, Connecticut, USA. For more on GE Capital Solutions, go to www.ge.com/capitalsolutions.

GE (NYSE: GE) is Imagination at Work -- a diversified technology, media and financial services company focused on solving some of the world's toughest problems. With products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content and advanced materials, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company's Web site at www.ge.com.