InTouch Newsletter

Launched in January 2018, Inland Bank’s Financial Advisor Loan Program was estab­lished to help independent financial advisors grow their business and client base through the acquisition of another financial advisor’s book of business, via partner buy-outs or debt refinancing. Serving financial advisors across the nation, the program provides conventional loans at a substantially lower rate than the SBA 7(a) loan program as well as flexible structures and favorable pricing and terms.

“When we started the program - and even still today – we witnessed a growing de­mand for financial advisor loans as the num­ber of financial advisor retirees continues to increase,” said Tiffany Tyson, assistant vice president – commercial lending for Inland Bank. “By listening to our financial advisory clients and providing customized solutions, we build a foundation of long-term, continu­ous support to help with financing now and in the future as a financial advisor’s practice grows.”

Historically, loans to financial advisors have had a very low default risk. Even amid the current pandemic, Inland Bank is seeing financial advisor businesses continuing to perform well and experience minimal impact.

One such company, Paramount Financial Strategies, LLC, a third-generation financial planning firm founded in 1965 that provides comprehensive fee-based financial plans for high-net-worth business owners and ex­ecutives, became a client of Inland Bank in May 2020 when it found a need to finance a large acquisition. Paramount turned to Inland Bank’s extensive experience in conducting complicated transactions within the financial advisory industry.

“While the acquisition negotiations were completed prior to the COVID-19 crisis, Inland Bank was faced with underwriting the loan in the face of the pandemic reality,” said Robert E. Bortz, Jr., CFP, president of Paramount Financial Strategies, LLC. “They were realistic, flexible and trusted us as a borrower at a time when there were so many variables that other banks would have used to delay a decision and funding. Inland Bank came through for Paramount at an elevated level within a critical timeframe.”

Based in Oconomowoc, Wisconsin, and serving 1,300 clients in 30 states, Para­mount’s business has continued to grow and thrive with the assistance and support of In­land Bank’s Financial Advisor Loan Program.

Another firm, Generations Financial Planning & Wealth Management, with offices in Jack­son and Battle Creek, Michigan, became a client of Inland Bank in January 2020 when needing a financial advisor loan to finance a partner buy-out.

“It’s common for a buy-out transaction to have many steps and modifications from start to finish, but after experiencing com­plications with our first lender, we reached out to Inland Bank in early January to see if we could still reach our target closing date in early February,” said Erik A. Smith, owner of Generations Financial Planning & Wealth Management. “Inland Bank was very clear from the start about the typical 60-day timeline for transactions of this magnitude, so I was amazed at the speed from the time they stepped in to closing in mid-February which was faster than their typical timeline. The personal interaction, ability to get a hold of someone with questions, follow-up and customer service is extraordinary.”

Due to the positive experience of the partner buy-out, Generations Financial Planning & Wealth Management expanded their relationship with Inland Bank to include personal and business checking accounts, a high yield money market account, corporate lending and access to the Paycheck Protec­tion Program (“PPP”) loans.

With a focus on addressing clients’ entire financial situation and creating plans for specific goals and needs, Generations Financial Planning & Wealth Management takes an active role in investment manage­ment, blending strategies to help clients reach their long-term investment goals and minimize downside risk.

“We encourage financial advisors who are interested in growing their business, reduc­ing the rate on their current debt, or looking for a bank that offers a holistic approach customized to fit their needs, to contact us for more information,” said Tiffany Tyson. “Our goal has always been to focus on build­ing relationships and providing a personal touch that is missing in banking these days.”

Inland Bank’s multifaceted Franchise Lend­ing Program, established in 2016, supports both franchisors and franchisees, as well as single-location and multi-unit opera­tors. Understanding that each business is unique, Inland Bank works diligently and strategically to provide clients with the nec­essary capital to establish or expand their franchise footprint, and goes a step further to aid clients by providing structured assis­tance throughout the finance process. From start-ups to expansions and re-financing, In­land Bank offers a variety of loan programs, including commercial real estate financing, working capital, acquisition financing and SBA 504.

“Establishments with drive-thru access have been doing exceptionally well, especially during COVID-19,” said Andrew Kelpsa, se­nior vice president of commercial lending at Inland Bank. “They’re a quick-service, safe option for customers and activity within that market continues to accelerate.”

Andrew helped launch the Finance Lending Program, after joining Inland Bank in 2016.Since inception, the program has worked with a number of new clients.

One quick-service retailer Inland Bank recently secured capital for is a well-estab­lished Dunkin’ franchisee. The franchisee’s portfolio consists of 31 Dunkin’ locations throughout the Chicagoland area, and is considered the third largest Dunkin’ opera­tor in the state of Illinois. The operator’s re­lationship with Dunkin’ Brands began much like a start-up in 1997, after they acquired two Dunkin’ stores at the age of 19. Since then, their portfolio has grown significantly to include 31 locations and 500 employees. Inland Bank proceeds will be used to re-fi­nance existing loans for 15 of the 31 Dunkin’ locations.

Going behind-the-scenes into the Dunkin’ program, Inland Bank also worked with Unified CML, LLC (“Unified”) and CML Operations, LLC, the commercial kitchen for Dunkin’, located in Bedford Park, Illinois. CML was launched in 2013 by 39 franchi­sors and produces baked goods for 370 Dunkin’ locations. Cash management was a very important feature for Unified, and proceeds from a $10.3 million commercial real estate loan covered existing loans and provided working capital.