GE Capital raises funds for lending in the commercial paper markets. In fact, GE Capital is the world's largest issuer of Commercial Paper. A portfolio lender is a lending institution that makes loans with the intention of holding the loans in it's investment portfolios. Portfolio lenders offer greater flexibility in the loan origination process, as well as down the road, than lenders who make loans with the intention of selling them - either immediately or at some time during the term. A prepayment penalty is a fee charged for early repayment of a loan balance to recover lost interest income associated with the early repayment of the loan.
Covenants are simply promises to conform to specific guidelines as part of a loan agreement.
A borrower's promise to conform to specified financial ratios for the life of the loan, for example, is a covenant. Covenants help the lender monitor and control the loan while providing the borrower with the greatest possible loan. As a preferred lender to many national franchisors, GE Capital Business Asset Funding puts its expertise to work for franchisees across the U.S. and Canada to deliver the most comprehensive franchise financing solutions available. We have relationships with over 350 different franchise concepts. We offer funding for real estate and equipment, as well as acquisition financing and refinancing of existing debt and sale-leasebacks.