Abraham Bergman, the company’s managing partner, will oversee the new unit. In an interview, he noted that while borrowers are focused on the equity side of the transaction, commercial lenders are more focused on things on the credit side like the debt service coverage ratio. Part of the effort is to bridge the gap.
Being able to provide this kind of service is something which Eastern Union has always sought to bring to the table and as it grows it is not something it wants to lose sight of, Bergman said. So it has made the commitment to invest in making certain the quality of the deals it brings to commercial lenders remains at a high level, if not outright improve.
Eastern Union is on pace to do $3 billion in transactions this year.
This service helps to speed transactions as lenders will be able to make decisions about Eastern Union loan applications faster and more efficiently.
Eastern Union has already hired Jim Hurtig for this operation. Hurtig comes from a lending background and looks at application packages from that perspective. He also has been speaking to Eastern Union’s lenders and gotten feedback from them on what the company is doing right and wrong, Bergman said. This helps the company’s sales people place deals better.
Both the lender is happier and the borrower is happier, he said.