Why Developers Use Colebrook
During their long tenure in the timeshare industry, the principals of Colebrook have established a number of relationships with companies and individuals in many areas of the business. We often introduce our customers to others in the industry who might be of assistance to them. We also have relationships with many financial institutions that have not previously been timeshare lenders. By participating in Colebrook’s loans, these institutions have brought new capital to the industry and provide a fresh alternative to standard sources.
Flexibility and Creativity
Unlike brokers, we use our own funds and can structure transactions uniquely suited to individual situations. The principals of Colebrook have been lending to the timeshare industry since 1979. Our understanding of the nuances of the business is of immeasurable aid in developing loan structures that suit customer needs. Colebrook understands point-based club programs and the issues involved in underwriting and documenting the club product.
Continuity and Consistency
Colebrook can take a developer from startup through maturity. We bring in other institutions to participate in large transactions, but retain the servicing of the loan relationship. There’s no need to change lenders when your needs change. We have also been consistently in the timeshare market during periods when other lenders have come and gone. During the financial crisis of 2008-2009, Colebrook was one of only two lenders that was active, and provided liquidity to many developers that otherwise would not have had a source of funding. Timeshare is our principal business and we have demonstrated a lasting commitment to the industry and its members.
The transaction costs, particularly legal fees, involved in closing a loan often take far too much of the proceeds. Colebrook has affiliated counsel and typically incurs much lower legal fees than large institutions. Colebrook has a product under which a loan can be documented at a higher amount than is originally approved, with an increase consummated by letter rather than additional loan documents, eliminating the legal fees associated with line increases and renewals. We offer small facilities for the ongoing purchase of receivables on a weekly or monthly basis that can be closed at minimal cost.