Rick Burgess, Prime Short Term Credit Inc CEO: “We are a premier collateralized lending platform designed to provide short term credit for building asset-based investment strategies”

There is currently $3.5 Trillion of commercial real estate debt in the US, most of which is provided as long-term fixed-rate mortgages. These mortgages are offered through Fannie Mae, Freddie Mac, large US banks, and other government-registered financial institutions. These institutions have established processes, prefer to work with larger firms and on larger projects, and have financing processes that typically take months to complete. However, there is also significant demand each year for short-term financing needs for commercial transactions. These are financial requirements that typical commercial firms do not quickly fulfill and are usually needed within weeks, not months. These borrowers are not as rate-sensitive since the length of their loans is generally less than a year. Prime Short Term Credit Inc was created to overcome the established challenges of short-term commercial financing. Short-term lenders typically require excess collateral for any loan and charge a higher rate than larger banks offering long-term mortgages. In exchange for the extra security and profitability, borrowers can move faster to complete their financing needs.

While the market for long-term commercial mortgages is highly efficient, the short-term commercial real estate financing marketplace is inefficient. It's difficult for qualified borrowers to find matching private lenders; often, borrowers take on poorly structured credit options with undesirable terms. And it's challenging for private lenders to become comfortable with their borrowers in a short time if there is no pre-existing relationship. Prime STC Inc helps to resolve this challenge and bridge the gap.

In conversation with Rick Burgess, CEO of Prime Short Term Credit Inc

Q. Can you explain about your services in brief?

We are a premier collateralized lending platform that provides short-term credit for building asset-based investment strategies. We work with experts in real estate development, business development, and other lending opportunities to help these individuals (or businesses) grow their asset-based portfolios. Prime STC Inc provides private, short-term commercial real estate, bridge, and transition financing solutions for established operators and owners with excess collateral in their portfolios.

The Prime STC model is designed for any short-term financing solution to provide total control for Prime STC reverses the approach where all engagements have Prime STC taking complete ownership/control of the collateral and investment from the beginning. The borrower invests cash into an LLC created together with Prime STC as the owner. This demonstrates the commitment to the partnership for both parties. When the partnership term is complete and the borrower is ready to make full payment, the ownership of the LLC is then transferred to the borrower completely. The partnership model helps to protect all parties, including Prime STC Inc’s investors. It also serves as a method for the borrower to establish a channel to funnel future projects, as the partnership LLC may continue if the borrower wants to roll in the next project. This makes it much easier to finance the next project quickly. 

Q. How can small and medium-sized businesses take advantage of collateralized lending? And how do you identify potential borrowers and evaluate them?

Specific needs for short-term commercial financing are for transactions such as smaller all-cash acquisitions, buy-outs of investment partners, payoffs of high-rate credit lines, financing capital improvements, and other similar requirements. Small and medium-sized owners and operators need to find, build and improve their real estate portfolios by leveraging the collateral of their existing portfolios. We build partnerships with primary owners, renovation and construction operators, and investors with short-term collateralized cash flow and credit line need. Prime does not do individual transactions with one-off contractors or one-time real estate operators. Our relationships are with established small and medium-sized owners and operators whom we are vetted through our due diligence process with quality real estate portfolios.

Q. What would you say are the top three skills needed to be a successful leader?

A good leader builds a great team and treats their team members as individuals. They lead by example and go out of their way to make sure they create an environment that fosters consistent effort and accountability. This builds confidence. Good leaders know how to display their confidence and experience in themselves and their team. Lastly, a good leader must have excellent communication skills to build rapport with their team members, which ultimately leads to trust.

Q. Do you have any new services ready to be launched?

By developing a lending platform that provides short-term credit for building asset-based investment strategies, we can enter other industries by offering our collateral credit model in various emerging marketplaces, such as cannabis.

Q. What does the future hold for your company and its customers? Are exciting things on the way?

Prime STC is in the process of launching a sister company in the cannabis space called Neue Cannabis Financial. We will use the same lending platform principles of Prime STC but this time specific to cannabis customers. The cannabis sector needs a private debt provider that does not seek to take an equity stake from cannabis growers, retailers, infrastructure, and distributors. This model allows us to focus on the particular needs within the cannabis market and provide incentive for investment in a lucrative market.

Meet the leader behind the success of Prime Short Term Credit Inc

Rick Burgess, CEO of Prime Short Term Credit Inc started as a clerk on the CME trading floor and transitioned into a trader in the currency pits. He went on to create a mid/high frequency trading system based on the concept of "flight to quality" which was sold to a large investment bank. Mr. Burgess later transitioned to a financial advisor career, working for Symmetric Financial and PNC. Subsequently, he founded Connect Lending, LLC, an alternative lending platform matching client with the right lender. While building the business, he noticed his client's constant need for working capital. He started helping with capital introductions when his organization could not extend credit, ultimately creating Prime Short Term Credit. Mr. Burgess graduated with a double major in Econometrics and Business Administration with a minor in Statistics from Westminster College in Pennsylvania.

“We work with experts in real-estate development, business development and other lending opportunities to help these individuals (or businesses) grow their asset-based portfolios.”