The Following is to give any prospective client/borrower an understanding of the typical process involved with most loan programs.


The initial underwriting is based on the criteria of the individual loan program. To submit a loan proposal, the following material is needed for the pre-underwriting stage:

  1. Loan Application or Loan Summary
  2. Executive Summary or overview of the loan proposal
  3. Current financial statement – business & personal
  4. Last 2 years tax returns- business & personal
  5. Agreement of sale, if any
  6. Appraisal, if any
  7. Color photographs of the property
  8. In- file credit report or credit authorization
  9. Breakdown of renovations/improvements, and use of proceeds
  10. Business Plan, including 5 year proforma

Additional information may be required at other stages of the loan process, but not all of the above information will be required for every loan program.


Letter of Intent

Once a project appears to meet the underwriting criteria, a Letter of Intent (LOI) is issued to the borrower. The LOI outlines the general terms and conditions on which a loan would be based. These terms generally include the amount, loan term, interest rate, collateral, borrowers, guarantors, origination fee and any other essential information, terms or conditions. This letter of intent is not a commitment to fund.

Upon issuance of an LOI, there may be a fee to cover the costs of application, in-house underwriting, document, financial and appraisal review. This fee can be credited against any Origination Fee payable in connection with the closing of a transaction.


Due Diligence/Site Inspection/Commitment

Following receipt of the executed Letter of Intent, we begin the process of formal due diligence. Based on the initial submission material and preliminary discussions with the prospective borrower or borrower’s agent, Quaker State will determine what additional information is required, if a site inspection is required, if a commitment can be issued at this time and what third party reports will be necessary. This is determined on a case-by-case basis and the individual loan parameters. In each case, our goal is to satisfy any and all underwriting criteria in order to determine final funding conditions.


Firm Commitment

Once all conditions have been satisfied, a firm commitment for funding is issued with final terms and conditions to proceed with the funding of a loan.



Quaker State may choose one or more participants in a loan, or may decide to assign the loan to investors prior to or immediately after funding a loan. When we choose to arrange such transactions, it is our sole responsibility to arrange these participants and not that of the borrower. Only due diligence can affect the loan parameters, not a participant. This gives Quaker State greater financial resources, loan parameters and expertise in helping clients to successfully achieve their financing goals.