Category: Commercial Loans

Have you tried running a business? It’s a hard job, isn’t it? If you have experience in this area, you might have already understood the function of finance. There isn’t any business out there that can roll or expand without money since there are certainly a lot of things to spend for in the business.

Money to spend for business is still a major concern of people. Entrepreneurs have recognized the role of planning so that money won’t so much become a problem. Getting loans for equipment finance purposes is all too tempting and many companies do this. What is great about this method is that, you know how much you are going to pay for several months or a couple of years maybe. The amount of money for amortization is the same month after month so there is no problem in issuing checks for the repayment of the equipment loan.

Having money allows a business to be more flexible and more people are looking for companies to give them adequate equipment financing. This is the reason why so many of these businesses are able to obtain new equipment, pay for overhead expenses or other things.

What makes these loans more attractive is due to the fact that there are online applications for people to use and they don’t have to wait in long queues to hand in their applications. The proper type of loan is available and clients are given coaching on what to do. This is so unlike the manner of most banks where you have to wait for a long time for approval and in the end, they may choose not to approve your application. Owners of small businesses stand with lesser chances of loan approval from banks and this has made them lose faith in the banking system. Banks on the other hand do not want to risk their money on small businesses because there is a greater percentage of having a bad credit case due to the erratic income of the self-employed sector.

Thus, the borrower obtains better advantage by obtaining the money needed to run the business. What these borrowers like about applying the equipment finance strategy is that, they can buy the right equipment and won’t have to settle for those with lesser quality.

It is vital that you create a list of equipment you would need and their suppliers. Make a comparison of the prices given by these suppliers for used and new equipment. Equipment financing can pay for your computers and other apparatuses. No matter how small or large the equipment is, there is a corresponding loan what would solve the requirement for the business. To be successful in making the business run, you need the help of machines. People will appreciate if you are using quality equipment and thus, will give more trust to you and even recommend your business to others.

Financing offers the payment terms that’s convenient for you, so that you would be able to play your resources and apply them for other things as well.

Many small companies in the US expect some growth opportunities in the next year. That is the great news! The bad news? Financing opportunities are looking bleak, particularly if the business owner has less than great credit, or a new business. Why would you need to know about financing small business loans? The main reasons for small business financing are to receive working capital and funds for capital expenditures.

It used to be that applying for business cash for a smaller business was fairly straightforward. You’d pay a visit to your local friendly banker and talk about your business needs. You’d discuss what you needed and they would help with financing a business loan – yours, to be exact. Then, the financial crisis hit, and banks closed ranks and decided that loans for small business were too risky. Business cash almost dried up. The big losers? Small business owners.

Now, we see the result of lack of financing: many small companies are either struggling to stay afloat, or are finding it almost impossible to capitalize on upcoming opportunities. In a recent Year-End Economic Report published by the National Small Business Association, nearly 40% of small businesses report they are unable to acquire adequate means for financing small business loans they deem necessary for their business to continue and grow.

What are the options for companies to get the business cash they need? The large corporate bankers and small locally owned banks are not the alternative they have traditionally been. You may feel that your business is a captive being held by the current economic situation and credit crisis. What you may not know is that there is a great source of alternative lenders who can provide working capital for small businesses. It is possible for loans to be secured against cash flow or your accounts receivable. In addition things such as inventory and purchase orders can be considered. Do you own property, machinery or equipment? These things as well may be leveraged to secure loans for small business.

What happens when your long time banker tells you there is no money for your business? Don’t give up and think that all is lost. There is help just around the corner for you. Business lending has changed. It may seem a little different to do business on the internet, but that is the new way. You just may be able to get the financing you need when the bankers say “No way.” Asset-based lines of credit may be the way to go in this Brave New World.

Typical banks are just no longer willing to extend traditional financing to the small company owner. There are many reasons for this, some of which are tightened federal requirements, as well as skittish investors who only look at the bottom line. These factors combine to make it seem that any loans for business may seem quite impossible. But don’t believe that! There is a whole new world of private banks and small business lenders who welcome your business. Once the level of risk of the business being financed is determined, you may be pleasantly surprised by the rates and terms you may be offered. Take advantage of the growth opportunities for your business. Grow your business just as you’ve dreamed.

The Get Working Capital Quick management team consists of financial professionals who have a combined experience of over 90 years in the business world. Get Working Capital Quick is focused on providing a variety of funding solutions including working capital, accounts receivable factoring, purchase order financing, merchant cash advance, business credit lines, and equipment financing. We can assist you in obtaining the financing you need for your company.

No matter how good of an idea or operation model you have, you cannot start an establishment without money. A lot of people struggle to get started simply because they cannot secure the funds to make their very real and concrete ideas a reality. Securing business loans is practically the only way for small, local shops to get off the ground. Since the economic crisis of 2008, the little guys have been having a hard time finding sufficient financial assistance. Banks and other financial institutions are wary of taking on risks after what happened in 2008. Still, there is hope. Let’s explore how you can go about getting financial backing so that you can get your shop up and running.

First, Make Sure You Can Meet Criteria That Banks and Other Institutions Want to See

As previously mentioned, the economic crisis of 2008 has made financial institutions wary of taking on risks and lending out money. If you want to succeed in securing money from these places, you need to ease their minds. They want to know exactly what the cash will be used for. Be sure that it will be used on something concrete and safe. They will not lend for speculative purposes or high-risk endeavors such as pyramid sales or investments. Show them a credible purpose for the cash, and you are on your way. They also want a very solid form of collateral. This generally is property, so make sure you really want the financing before you put up your home to secure it. Finally, you need to have good credit and character history. Business loans are typically not given to those with criminal records or poor credit. Banks consider these people to be high-risk and want to avoid them.

The Interview Process: Be Confident and Truthful

Once you ensure that you have the above criteria nailed down as solidly as you can, it is time to go to financial institutions and try to secure a loan. Business loans from the large banking players generally are not given to start-ups. This is due to the inherent risk that comes along with a start-up. If you are instead seeking cash for growth, you will probably have more success at one of the larger banking institutions than a start-up, but these institutions generally like working with other big corporate players where their money is safe. Visit the bank your personal accounts are in and talk to a professional. They will help you prepare for the process, and let you know if you qualify for their lending program. Do not be afraid to go to smaller community banks and credit unions. Believe it or not, the little guys are more willing to lend to the little guys. Business loans vary from institution to institution. You will be required to bring different information with you to each interview, but the credit history reports both for your operation and your personal life will always be required.

Besides these things, there is not much you can do except hope and see if one of the institutions will give you the money. If you can’t get cash, which will probably be the case for most start-ups, you should try to get financing from family members, use credit cards, or invest your savings into your idea.

The loans offered by the US Small Business Administration are regarded as the most reliable funding option available for the startup companies. Affordable repayment option as well as low rates of interest seems to be the excellent choice for the companies who are in need of monetary support. However it is important to remember that this government agency of the United States does not pay loans to small companies directly. However, it develops effective guidelines for the funds that are given by their partners that include community development companies, moneylenders as well as micro lending companies. The Small Business Administration also gives the warranty that the funds granted by these companies will be repaid within the scheduled period of time.

Although these loans are the best financial option for the startup companies, the other companies that have wide access to other types of funds cannot access these funds. Here are the four types of SBA loans that are available for the businesses that cannot access to other kinds of loan options.

The objective of SBA 7 (a) program is to allow the small business to acquire money easily. It is the most flexible and the basic type of loan option that is available for a business. It can be used for multiple business purposes such as purchase of equipment or furniture, renovation of buildings as well as repayment of debt and other relevant purposes. The maturity of this type of fund is almost ten years for capital repayment as well as up to twenty five years for repayment of permanent assets.

SBA 504 loan allows the startup businesses to get permanent and long term funding for the purchase or renovation of key assets such as buildings, lands and so on. This type of loan is structured where the SBA offers forty percent of the total cost of the project and the participating lending organization covers nearly fifty percent of the cost. Plus, the borrower pays nearly ten percent of the total cost of the project. This type of program is used to buy buildings, long term devices, build or even renovate facilities as well as repay the debt with the purpose of expansion of business. Under this loan program, the small business qualifies if it shows an average income of nearly five million dollars after deduction of income tax for the previous two years before submission of a loan application.

Microloan program offered by the Small Business Administration is an exclusive loan that is available for small business. A borrower can use this type of loan to buy capital, fixtures, supplies, machines and equipment. This government organization ensures that this type of fund is available for the nonprofit organization who is experienced in dealing with technical operation. However, it is important to remember that this type of fund is not used for the purchase of property or for repayment of current debt.

The Small Business Administration offers low interest fund to the small businesses that are affected by disaster. It is used to repair damaged property, equipment as well as different types of business assets.

Miner Capital Funding, LLC is one of the leading finance company providing SBA small business loan to the customers. One of the popular financial providers for the small business loans, Miner Capital is dedicated in providing SBA bank loans, hard money as well as bridge loans to the US clients.

Are you interested in a construction mortgage? There are two types of construction mortgages that you can go for: completion construction mortgage and progress draw construction loan.

Completion construction mortgage

You should apply for this loan when you are purchasing your home from a qualified builder at a fixed price upon completion of the building.

There are two types of this loan:

All-in one construction loan: this is a simple loan that offers you a one rate for both the construction process and the financing that comes at the end. When you take this loan you need to repay it within one year. You should note that you have to pay a penalty if you go over the time limit.

Purchase plus improvement: this is the one that you get when you buy a home that needs to be taken good care of. The contractor needs to keep on making the improvements that you ask him/her to do and you should only accept the building once you are satisfied with the improvements.

Both of these construction loans have a number of features:

The builder has to own the lot where the home is to be built
The builder can request for money only when the home is 100% complete.
The lender may require an appraisal before, during, and after the construction. This is to ensure that the home is worth the amount being mortgaged
You need to make a down payment-which can be made in a series of installments
Since the loan is almost similar to a resale property mortgage, the mortgage agent won’t require an administration fee in order to arrange this type of financing.

Before you are given the loan, you need to present a number of documents to the lender. The documents include:

Copy of building contract that has been signed by you and the contractor
House plan and working drawings
Site plan that shows the legal description and dimension of the property
An appraisal that indicates the final value of the home after construction

Progress draw construction loan

This is ideal when you are planning of construction your home using your own general contractor. You apply for funds at three different stages of the loan: when the building is 35-40%, 65-70% and 100% complete. You should note that the interest rates of this loan are higher than that of a traditional mortgage.

When applying for the loan you need to present a number of documents that include:

Copy of land contract
A resume confirming that you have good knowledge of the construction process
Copy of all sub-contracts which confirm the construction costs.