LONG ISLAND, N.Y., May 7, 2012 -- Manhattan Bridge Capital, Inc. announced today that it had entered into a Line of Credit Agreement with Sterling National Bank pursuant to which the Bank has agreed to advance up to $3.5 million against assignments of mortgages and other collateral.
Assaf Ran, Chairman of the Board and CEO stated, "This is a very important day for the Company. We achieved a milestone by arranging a relatively low cost source of funding which is essential for continued growth of the Company."
The Company's management and the Board of directors are grateful to the Sterling National Bank team for the smooth and professional transaction and excited about working together in the future. ----- This is reasonably good news I suppose.
Does anyone know how the "assignments of mortgages" works ?
Is it free or does it involve expensive costs ?
I know with car titles, dealers let the lenders hold the titles although thats not the best example because they can & often do sell the cars prior to paying off the loan.
What Im saying is 6% is a decent rate, Unless other costs are 5-6% and then its not so great.
I think Assaf ought to award himself a few hundred thousand free shares for setting this up. LOL