Qualifying for a business loan is not as easy as it was even one year ago. This is because most lending institutions have increased the requirements for businesses requesting a loan. The recent slowdown in our economy has forced banks to re-examine their lending practices as many businesses are experiencing lower profits. So when you are looking for a loan for your business it is important that you have everything in order so you will have the best chance to be approved.
One of the first things that you need to look at before going to a lending institution is whether or not you have a good business plan together. Having a business plan drawn up for your company is a great way to show the bank that you have carefully considered your request. This will show the bank where your business is currently and where you hope it will go once you have been approved for a loan. There are many professional writers that work as freelancers that have the expertise in this area that you can hire if you are uncertain about your ability to convey your thoughts on paper.
The next thing to do before you go to a lender is to look at your company's financials. Clear as many debts as you possibly can. For example, if you use a credit card start paying it off monthly or if you have a vehicle loan with just a few payments left on it you might want to consider paying it off. This will help your income to debt ratio and make your business a more attractive prospect.
Once you have done that, you should look at all the officer's credit reports. Every officer of the company will have a credit history run on them because they will be personally guaranteeing the loan. So make sure that the person income to debt ratio is good and clean up any bad marks against your credit.
When you have all of that together you are now ready to go to the lending institution. With the situation the way it is currently it would be wise to start with the bank you already have a relationship with. This is especially true if you have a community or local bank. They make their decisions based on the local area unlike the larger national banks. If your company is turned down don't take it personally but consider your other options.
There are other places to gain access to a loan. You need to keep your eyes open, when the private market tightens the amount of money they are willing to lend oftentimes you can more easily qualify for an SBA loan. So if your bank says no don't give up to easily especially if all of your financials are strong. So when you are looking for a business loan make sure that you have your company looking the best that it can financially and present the lenders with a solid business plan.
Craig Thornburrow is an acknowledged expert in his field. You can get more free advice on a small business loan and home business loan at http://www.businessloansadvice.com
Article Source: http://EzineArticles.com/?expert=Craig_Thornburrow
Wednesday, May 28, 2008
Finding Financing For Heavy Equipment In A Credit Crunch
Imagine this. The year is 2008. The U.S. is in the midst of one of the worst housing crises in ages. There are more foreclosures than ever and it's expected to get worse. Two hundred and sixty or more major mortgage lenders have gone out of business. The mortgage companies that are still in business are suffering at the hand of major monetary losses. Mortgage lending is very challenging to say the least. Home values have declined significantly. Millions of people owe more on their home than what a sale would yield. The credit crunch started in the home loan market, but has trickled down to numerous other credit markets including auto loans, personal loans, business loans, and equipment loans. The banks have tightened up big time. Wait, wait just a second. I'm not imagining this. It's reality. So, you're in the market for some new construction equipment, but you have lower credit scores and the bank has turned you down. You say to yourself, "what do I do now"?
Just because the bank said no, that does not mean you don't have options when it comes to leasing your construction equipment. The first option is to buy repossessed equipment or to buy equipment that was turned in at the end of a lease term (off lease equipment). The first thing that many people might think is-"hey, I can get a great deal (price) on repossessed equipment". This is partially true. You get an awesome deal, but it's not necessarily the price. There is still decent demand for heavy equipment, so generally the prices are not slashed like one might imagine. Here is the sweet part of buying off lease equipment. There are one or two lenders that hold on to their off lease equipment rather than selling it at an auction. The beautiful thing in this case is that they have dramatically relaxed their credit criteria for their off lease equipment. At this point, one can get a new piece of equipment up to $250,000 with just a simple application (no tax returns, no bank statements, no time in business requirement, no down payment requirements, & eased bankruptcy requirements) and a 575 or higher Trans Union score. In the middle of a credit crunch, that's amazing and you'd be hard pressed to find a deal like this at the bank. The key is to select off lease equipment and you generally need only one or two payments paid up front.
A second option might appeal to business owners with really damaged credit (scores from 0-620), but have an equipment need that will generate considerable income for their company. No matter what credit score a business owner might have, he/she can get the equipment they need if they have secondary collateral available. In every equipment lease or loan transaction (meaning-good or bad credit), the piece of equipment being purchased is always part of the collateral and this is the same for the type of financing we're talking about here. The secondary collateral above and beyond the new equipment is simply to mitigate the risk of lending to a business owner that has a credit file that suggests they've had trouble paying some of their obligations. In the event of a repossession, lenders fork out a lot of money in legal fees and losses due to selling the equipment at discounted prices at auctions. Here is how the secondary collateral can help you get your new equipment (opposed to just telling you NO because your credit is poor). Generally, one would need a little more than a two to one ratio (collateral to new equipment). For example, If you're buying an excavator for $50,000., you'd need to furnish secondary collateral of about $58,000. The additional collateral can be equipment you own outright, real estate, land, c.d.'s, mutual funds, and any other non tax advantage accounts. It doesn't even have to be your collateral, it can belong to a co-signer.
If your credit has taken some hits in the midst of the current credit crunch and you need to buy business equipment, don't dismay, there are options. Remember that you won't get A rates and payments. The most important thing to consider is how much money will this piece of equipment generate for your company. If it exceeds the cost, go for it.
About Vitality Finance Group
Does your business need heavy equipment or specialty truck financing? We can lease just about anything, call us to see how we can help. Leasing is a type of business financing that can serve as an excellent alternative to traditional business loans. Contact us or apply online at (877) 834-3247 or http://vitalityfinancegroup.com/financing-special-credit.html or http://www.VitalityFinanceGroup.com
For info on do-it-yourself credit repair (it's easy with the right tools), check out http://www.credit-repair-guide-review.vfgfair.com
This site rates 4 of the best self help credit repair guides.
Article Source: http://EzineArticles.com/?expert=Shawn_Vaillancourt
Just because the bank said no, that does not mean you don't have options when it comes to leasing your construction equipment. The first option is to buy repossessed equipment or to buy equipment that was turned in at the end of a lease term (off lease equipment). The first thing that many people might think is-"hey, I can get a great deal (price) on repossessed equipment". This is partially true. You get an awesome deal, but it's not necessarily the price. There is still decent demand for heavy equipment, so generally the prices are not slashed like one might imagine. Here is the sweet part of buying off lease equipment. There are one or two lenders that hold on to their off lease equipment rather than selling it at an auction. The beautiful thing in this case is that they have dramatically relaxed their credit criteria for their off lease equipment. At this point, one can get a new piece of equipment up to $250,000 with just a simple application (no tax returns, no bank statements, no time in business requirement, no down payment requirements, & eased bankruptcy requirements) and a 575 or higher Trans Union score. In the middle of a credit crunch, that's amazing and you'd be hard pressed to find a deal like this at the bank. The key is to select off lease equipment and you generally need only one or two payments paid up front.
A second option might appeal to business owners with really damaged credit (scores from 0-620), but have an equipment need that will generate considerable income for their company. No matter what credit score a business owner might have, he/she can get the equipment they need if they have secondary collateral available. In every equipment lease or loan transaction (meaning-good or bad credit), the piece of equipment being purchased is always part of the collateral and this is the same for the type of financing we're talking about here. The secondary collateral above and beyond the new equipment is simply to mitigate the risk of lending to a business owner that has a credit file that suggests they've had trouble paying some of their obligations. In the event of a repossession, lenders fork out a lot of money in legal fees and losses due to selling the equipment at discounted prices at auctions. Here is how the secondary collateral can help you get your new equipment (opposed to just telling you NO because your credit is poor). Generally, one would need a little more than a two to one ratio (collateral to new equipment). For example, If you're buying an excavator for $50,000., you'd need to furnish secondary collateral of about $58,000. The additional collateral can be equipment you own outright, real estate, land, c.d.'s, mutual funds, and any other non tax advantage accounts. It doesn't even have to be your collateral, it can belong to a co-signer.
If your credit has taken some hits in the midst of the current credit crunch and you need to buy business equipment, don't dismay, there are options. Remember that you won't get A rates and payments. The most important thing to consider is how much money will this piece of equipment generate for your company. If it exceeds the cost, go for it.
About Vitality Finance Group
Does your business need heavy equipment or specialty truck financing? We can lease just about anything, call us to see how we can help. Leasing is a type of business financing that can serve as an excellent alternative to traditional business loans. Contact us or apply online at (877) 834-3247 or http://vitalityfinancegroup.com/financing-special-credit.html or http://www.VitalityFinanceGroup.com
For info on do-it-yourself credit repair (it's easy with the right tools), check out http://www.credit-repair-guide-review.vfgfair.com
This site rates 4 of the best self help credit repair guides.
Article Source: http://EzineArticles.com/?expert=Shawn_Vaillancourt
Hard Money Commercial Loans - Common Borrower Situation
Hard money commercial loans are becoming more prevalent as borrowers feel the pinch of the credit crisis and find that traditional sources, such as their local banks will not approve their loan request. Some borrower are often surprised, maybe shocked to receive the notice that their loan has been "called" due to the banks desire to lighten its exposure. As of April 2008, it's estimated the turn down rate from traditional banks to be as high as 90%... The void is being filled, to a degree, by hard money commercial loans.
The positives are that the borrowers enjoys less red tape, closing often take as short as 2 -3 weeks and in general a more "common sense" underwriting mindset prevails. Despite the positives, borrowers still normally rely on this type of financing only as an option when they cannot get conventional financing; and for good reason. The increase in speed and flexibility with underwriting comes at price for the borrower with interest rates in the 12-16% range and front end points from 3-6%. In addition the loan will normally not be extended beyond 24 to 36 months.
Why would anyone agree to such terms?
1. They have no other options or
2. Despite the high rate and points the overall deal makes sense for their situation.
Here are two examples where it made sense for the borrower to go forward with a hard money commercial loan.
Denver, Colorado. Small retail building that had been owned by the same owner for 30 years where he occupied his business. In short, despite the borrower's lack of development and real estate management experience he wanted to move his business out and convert the property into a 4 unit rental property. To accomplish this he needed to completely gut the property, alter the facade and make changes to the parking lot. And of course, he needed a lot of money to accomplish this.
His problems where many: First of all he had no development experience, his credit was in the low 500's, had almost no liquidity AND his business had been losing money for the last 2 years... In short he had no chance of getting conventional financing.
What he did have was a solid building right outside of downtown that he owned free and clear. The loan that we put together was at 50% loan to value with an 18 month payment reserve. Meaning the first 18 month "were" prepaid" taken out of the loan proceed and put into a 3rd party escrow account. This was the only way the lender would agree to the deal which made sense because the borrower didn't have any cash to make the monthly payments! It also gave him sufficient time to renovate and lease out the property. The payment reserve was a huge relief to the borrower as well, because he knew all too well his cash flow situation.
Metro Detroit. A local business that owned a large light industrial building with a retail component was shocked by their existing bank. Despite the borrower 15 year loyalty to its banks and never being late on one payment their loan was "called" meaning forced balloon (yes banks can do this; there is a call provision in almost all commercial bank mortgages). The rationale behind this was the bank did not like the industry the business was in (tier 3 automotive supplier) and didn't like the building type. Industrial properties in metro Detroit continue to get hammered as the market slides with the automotive industry.
As the business begun to search for options they discover that
1. no conventional source wanted their loan and
2. that the few that showed some interest had to have a full recourse loan, meaning full personal guarantee.
Though the CEO had a 2% ownership, the rest was controlled through a family trust. The CEO was not willing to sign off and none of the family was willing to either. Many private money lenders want full recourse, but this is a negotiable item. And as long as the loan to values are below 60 - 50% you can often find a source. So the borrower decided to go the hard money route with a 3 year interest only loan. They refinanced the mortgage as well pulled out an additional $700,000 to consolidate date, which greatly improved their cash flow situation.
These are typically scenarios, others include foreclosures, distressed properties, recent bankruptcies, lack of existing cash flow, partnership buy outs, land contract refinances, "need for speed," etc. Bottom line, hard money commercial loans are expensive but can be a viable option.
248 885-8797 Jeff Rauth is President of Commercial Finance Advisors, Inc out of Birmingham, Michigan. He specializes in Commercial Real Estate Loans between $300,000 - $5,000,000. Offers unique loan programs such as Commercial Second Mortgages, Commercial 30 Year Fixed and 90% non SBA financing, and Commercial Equity Lines. 248 885-8797
hard money commercial loans or commercial loan calculator or commercial loan rates
Article Source: http://EzineArticles.com/?expert=Jeff_Rauth
The positives are that the borrowers enjoys less red tape, closing often take as short as 2 -3 weeks and in general a more "common sense" underwriting mindset prevails. Despite the positives, borrowers still normally rely on this type of financing only as an option when they cannot get conventional financing; and for good reason. The increase in speed and flexibility with underwriting comes at price for the borrower with interest rates in the 12-16% range and front end points from 3-6%. In addition the loan will normally not be extended beyond 24 to 36 months.
Why would anyone agree to such terms?
1. They have no other options or
2. Despite the high rate and points the overall deal makes sense for their situation.
Here are two examples where it made sense for the borrower to go forward with a hard money commercial loan.
Denver, Colorado. Small retail building that had been owned by the same owner for 30 years where he occupied his business. In short, despite the borrower's lack of development and real estate management experience he wanted to move his business out and convert the property into a 4 unit rental property. To accomplish this he needed to completely gut the property, alter the facade and make changes to the parking lot. And of course, he needed a lot of money to accomplish this.
His problems where many: First of all he had no development experience, his credit was in the low 500's, had almost no liquidity AND his business had been losing money for the last 2 years... In short he had no chance of getting conventional financing.
What he did have was a solid building right outside of downtown that he owned free and clear. The loan that we put together was at 50% loan to value with an 18 month payment reserve. Meaning the first 18 month "were" prepaid" taken out of the loan proceed and put into a 3rd party escrow account. This was the only way the lender would agree to the deal which made sense because the borrower didn't have any cash to make the monthly payments! It also gave him sufficient time to renovate and lease out the property. The payment reserve was a huge relief to the borrower as well, because he knew all too well his cash flow situation.
Metro Detroit. A local business that owned a large light industrial building with a retail component was shocked by their existing bank. Despite the borrower 15 year loyalty to its banks and never being late on one payment their loan was "called" meaning forced balloon (yes banks can do this; there is a call provision in almost all commercial bank mortgages). The rationale behind this was the bank did not like the industry the business was in (tier 3 automotive supplier) and didn't like the building type. Industrial properties in metro Detroit continue to get hammered as the market slides with the automotive industry.
As the business begun to search for options they discover that
1. no conventional source wanted their loan and
2. that the few that showed some interest had to have a full recourse loan, meaning full personal guarantee.
Though the CEO had a 2% ownership, the rest was controlled through a family trust. The CEO was not willing to sign off and none of the family was willing to either. Many private money lenders want full recourse, but this is a negotiable item. And as long as the loan to values are below 60 - 50% you can often find a source. So the borrower decided to go the hard money route with a 3 year interest only loan. They refinanced the mortgage as well pulled out an additional $700,000 to consolidate date, which greatly improved their cash flow situation.
These are typically scenarios, others include foreclosures, distressed properties, recent bankruptcies, lack of existing cash flow, partnership buy outs, land contract refinances, "need for speed," etc. Bottom line, hard money commercial loans are expensive but can be a viable option.
248 885-8797 Jeff Rauth is President of Commercial Finance Advisors, Inc out of Birmingham, Michigan. He specializes in Commercial Real Estate Loans between $300,000 - $5,000,000. Offers unique loan programs such as Commercial Second Mortgages, Commercial 30 Year Fixed and 90% non SBA financing, and Commercial Equity Lines. 248 885-8797
hard money commercial loans or commercial loan calculator or commercial loan rates
Article Source: http://EzineArticles.com/?expert=Jeff_Rauth
How Can A Merchant Cash Advance Help A Smart Business Owner
Merchant cash advances help business owner's open doors for better types of funding opportunities. The business cash advance industry is climbing at a continuous rate. This ever increasing growth is because traditional bank loans are not meeting the demands of small business owners.
Business cash advances are a unique funding method. It's a purchase of future credit card sales, not a loan, so we have to use specific language consistent with purchase of future credit card sales, like payback rate and discount rate instead of commonly used interest rate on bank loans. Merchant cash advances are a lot like factoring but are based on a sale that hasn't happened just yet.
A business cash advance lender gives business owners a sum of cash advance up front. In exchange, the business owner agrees to pay back the principal amount plus the fee, by giving the lender a daily percentage of their visa and master card sales until the payback is completed.
The daily payback percentage won't be higher than 10% of daily gross sales, the daily percentage is based on the monthly credit cards sales volume and the amount of cash advance required. The payback time-frame is structured for a 6-9 months term, but it's not fixed, and there won't be any penalties if it takes longer.
Business owners usually must switch the credit card processor because the advance is paid back automatically as a percentage of each batch's proceeds, but the rates will be the same if not better. Just a small number of merchant cash advance lenders don't require the merchant to change their credit card processors company. Most time this won't be a problem at all since the rates will be matched.
Business cash advances differ a lot from the traditional bank funding programs. In essence a merchant cash advance lender purchases a small percentage of future Master Card and Visa sales, and the business owner pays back this as a daily percentage of such sales.
Obtaining cash from the bank can be difficult for most business owners, but particularly retail businesses, restaurants, store franchisees or seasonal businesses. These merchants mostly use credit card processing, making a merchant cash advance program a great funding opportunity for them.
What are some of the benefits?
The money is available much faster than it is with a bank loan. Unsecured merchant cash advances are specially a great option for retail and restaurant merchants, not only because these types of businesses can hardly be funded by the traditional bank, but also because of the immediate liquidity and simple process.
Many merchant cash advance lenders advertise that the money will be available in as fast as 10 days, and unlike a bank loan that have a fixed interest rate, as the amount due and due date are fixed each month, no matter if your sales drop. Instead, with a merchant cash advance the payback comes from future credit card receivables, not straining your business cash flow.
Fast merchant cash advance programs are cash flow friendly, during seasonally slow periods specially.
Traditional bank loans require a fixed set of payments every month, whether the business has made a sale or not. But if you choose a merchant cash advance, payments are calculated as a percentage of credit card sales, and if the sales are growing, the re-payment could be quicker, but if the business owner experiences some interruption or sales drop in the business, the payments will drop with it.
Another great advantage of a merchant cash advance, is that the business owner won't risk he's personal assets, because there's no collateral required.
David Castro often writes articles about Merchant Cash Advance and Small Business Loans for Merchant Resources International - To Learn more Visit Us at http://www.cashprior.com
Article Source: http://EzineArticles.com/?expert=Gaston_Castro
Business cash advances are a unique funding method. It's a purchase of future credit card sales, not a loan, so we have to use specific language consistent with purchase of future credit card sales, like payback rate and discount rate instead of commonly used interest rate on bank loans. Merchant cash advances are a lot like factoring but are based on a sale that hasn't happened just yet.
A business cash advance lender gives business owners a sum of cash advance up front. In exchange, the business owner agrees to pay back the principal amount plus the fee, by giving the lender a daily percentage of their visa and master card sales until the payback is completed.
The daily payback percentage won't be higher than 10% of daily gross sales, the daily percentage is based on the monthly credit cards sales volume and the amount of cash advance required. The payback time-frame is structured for a 6-9 months term, but it's not fixed, and there won't be any penalties if it takes longer.
Business owners usually must switch the credit card processor because the advance is paid back automatically as a percentage of each batch's proceeds, but the rates will be the same if not better. Just a small number of merchant cash advance lenders don't require the merchant to change their credit card processors company. Most time this won't be a problem at all since the rates will be matched.
Business cash advances differ a lot from the traditional bank funding programs. In essence a merchant cash advance lender purchases a small percentage of future Master Card and Visa sales, and the business owner pays back this as a daily percentage of such sales.
Obtaining cash from the bank can be difficult for most business owners, but particularly retail businesses, restaurants, store franchisees or seasonal businesses. These merchants mostly use credit card processing, making a merchant cash advance program a great funding opportunity for them.
What are some of the benefits?
The money is available much faster than it is with a bank loan. Unsecured merchant cash advances are specially a great option for retail and restaurant merchants, not only because these types of businesses can hardly be funded by the traditional bank, but also because of the immediate liquidity and simple process.
Many merchant cash advance lenders advertise that the money will be available in as fast as 10 days, and unlike a bank loan that have a fixed interest rate, as the amount due and due date are fixed each month, no matter if your sales drop. Instead, with a merchant cash advance the payback comes from future credit card receivables, not straining your business cash flow.
Fast merchant cash advance programs are cash flow friendly, during seasonally slow periods specially.
Traditional bank loans require a fixed set of payments every month, whether the business has made a sale or not. But if you choose a merchant cash advance, payments are calculated as a percentage of credit card sales, and if the sales are growing, the re-payment could be quicker, but if the business owner experiences some interruption or sales drop in the business, the payments will drop with it.
Another great advantage of a merchant cash advance, is that the business owner won't risk he's personal assets, because there's no collateral required.
David Castro often writes articles about Merchant Cash Advance and Small Business Loans for Merchant Resources International - To Learn more Visit Us at http://www.cashprior.com
Article Source: http://EzineArticles.com/?expert=Gaston_Castro
How Can I Refinance A Commercial Loan?
Loans are available for everyone in need. You may be a salaried class person or a businessman looking forward to raise money on the basis of commercial premises. However, when you borrow money on fixed rates, you are devoid of any favourable changes that take place in the market like a fall in the interest rate. In such circumstances, you might want to shift the lender to avail of the benefits of lower interest rates.
You should however ensure that by shifting the lender or the loan plan, you will be able to save some money. Otherwise, there is no benefit in going through the hassles of making such changes.
Normally, when you borrow, the terms and conditions remain fixed unless the loan is based on variable rate of interest. In case of variable rate, the changes in the market conditions and the base rate of interest affect the actual interest rate applicable in your case. So, the interest rate keeps on fluctuating as the market conditions change. It is just the opposite in case of fixed rate of interest. No benefit is conferred on you if the interest rates fall and also no loss is incurred if the interest rates rise immediately.
After you have taken a fixed rate loan and you find that the market is going downwards as very cheap loans are available now, you can refinance your commercial loan from a new lender. Refinancing commercial loans are not always going to be a beneficial proposition; you will have to look into the pros and cons each time you want to do it. If you are convinced that you will be able to save money in interest repayments, it's surely a good option.
Each time you refinance commercial loans, the terms and conditions attached to a loan changes. Refinancing can be carried out with the existing lender or a new lender may be searched. There are various reasons why businessmen want to refinance their commercial loans. They may get better terms and conditions from the new lender or they might be interested in effective loan management. Lenders provide the facility of refinance in case of almost all the loans. The rate of interest available on refinancing can be searched on the various comparison websites. You need not approach individual lender or their websites. A data is usually given in the tabular form to facilitate easier comparison on these websites. The comparison websites do not take any fees or charges from the consumers.
For more information about loans: Personal loan company , Enjoy debt free driving
Article Source: http://EzineArticles.com/?expert=Samantha_Bonsu
You should however ensure that by shifting the lender or the loan plan, you will be able to save some money. Otherwise, there is no benefit in going through the hassles of making such changes.
Normally, when you borrow, the terms and conditions remain fixed unless the loan is based on variable rate of interest. In case of variable rate, the changes in the market conditions and the base rate of interest affect the actual interest rate applicable in your case. So, the interest rate keeps on fluctuating as the market conditions change. It is just the opposite in case of fixed rate of interest. No benefit is conferred on you if the interest rates fall and also no loss is incurred if the interest rates rise immediately.
After you have taken a fixed rate loan and you find that the market is going downwards as very cheap loans are available now, you can refinance your commercial loan from a new lender. Refinancing commercial loans are not always going to be a beneficial proposition; you will have to look into the pros and cons each time you want to do it. If you are convinced that you will be able to save money in interest repayments, it's surely a good option.
Each time you refinance commercial loans, the terms and conditions attached to a loan changes. Refinancing can be carried out with the existing lender or a new lender may be searched. There are various reasons why businessmen want to refinance their commercial loans. They may get better terms and conditions from the new lender or they might be interested in effective loan management. Lenders provide the facility of refinance in case of almost all the loans. The rate of interest available on refinancing can be searched on the various comparison websites. You need not approach individual lender or their websites. A data is usually given in the tabular form to facilitate easier comparison on these websites. The comparison websites do not take any fees or charges from the consumers.
For more information about loans: Personal loan company , Enjoy debt free driving
Article Source: http://EzineArticles.com/?expert=Samantha_Bonsu
New Business Loans - Give Shape To Your Dreams
When it is about starting a new business, many things come up. You will have to buy things like machines, office accessories and will have to put some money too on the setting up and registration of your office. For such new business ventures you can go for loans particularly designed for that purpose only and one such loan is new business loan.
You can trust on the new business loans for any kind of help during the setting up of your office and business. For any kind of business plan, either it is a small or big one; you will get lenders ready to help you in every required expense. You will have to place your new business plan when applying for new business loans. Things that you need to mention in your plan include the type of the business, the place that you have chosen for your business venture, the total estimate and manpower etc.
New business loans are available as both the secured and unsecured forms. For availing cheap rates, longer repayment term and lower interest rate; secured new business loans are the best options. For getting this loan you just have to place collateral. With a repayment period of 5 to 30 years you can get an amount of £50,000 to £300,000.
However, for availing loan without collateral you can go for the unsecured new business loans. The amount offered in the unsecured loans is £25,000 to £250,000 and that is for a period of 3 to 15 years mostly.
Moreover, these are open for the bad credit holders too, obviously with slight surge in interest rates. So you, in spite of having records like CCJ's, arrears or late payments of installments; can freely go for the bad credit new business loans.
Online facilities are nowadays taking a good shape with various facilities to offer the borrowers. You will get to go through numerous lenders with whom you can match your needs and demands and thus go for a proper new business loan.
So, with aids from these, now it's really easy to dream ahead with lofty aspirations of doing business at an unmatched ease. New business loans are quite supportive in providing you every help for starting a new business.
Michael T.Brian is the author of this article. He is Masters in Business Administration and expert in finance. He writes about various finance related topics. To find New Business Loans, unsecured business loans, business loans, business start up loans, secured business loans visit http://www.find-business-loans.co.uk/
Article Source: http://EzineArticles.com/?expert=Michael_Brian
You can trust on the new business loans for any kind of help during the setting up of your office and business. For any kind of business plan, either it is a small or big one; you will get lenders ready to help you in every required expense. You will have to place your new business plan when applying for new business loans. Things that you need to mention in your plan include the type of the business, the place that you have chosen for your business venture, the total estimate and manpower etc.
New business loans are available as both the secured and unsecured forms. For availing cheap rates, longer repayment term and lower interest rate; secured new business loans are the best options. For getting this loan you just have to place collateral. With a repayment period of 5 to 30 years you can get an amount of £50,000 to £300,000.
However, for availing loan without collateral you can go for the unsecured new business loans. The amount offered in the unsecured loans is £25,000 to £250,000 and that is for a period of 3 to 15 years mostly.
Moreover, these are open for the bad credit holders too, obviously with slight surge in interest rates. So you, in spite of having records like CCJ's, arrears or late payments of installments; can freely go for the bad credit new business loans.
Online facilities are nowadays taking a good shape with various facilities to offer the borrowers. You will get to go through numerous lenders with whom you can match your needs and demands and thus go for a proper new business loan.
So, with aids from these, now it's really easy to dream ahead with lofty aspirations of doing business at an unmatched ease. New business loans are quite supportive in providing you every help for starting a new business.
Michael T.Brian is the author of this article. He is Masters in Business Administration and expert in finance. He writes about various finance related topics. To find New Business Loans, unsecured business loans, business loans, business start up loans, secured business loans visit http://www.find-business-loans.co.uk/
Article Source: http://EzineArticles.com/?expert=Michael_Brian
Unsecured Lines Of Credit - A Financing Alternative For Business Owners
Unsecured Lines of Credit are an excellent financing alternative that business owners can utilize to replace their frozen home equity lines of credit. These lines of credit will be more advantageous than business loans because, like credit cards, interest is paid only on the outstanding balance. With two years in business and a 680 or above credit score, business owners qualify for up to $1 million with full documentation. Applications can be approved for up to $350,000 with no documentation.
Unsecured Lines of Credit can be obtained in roughly 4 to 6 weeks but should never be applied for directly by the borrowers themselves. The borrower, although qualified, cannot simply walk into a lending institution or bank for an unsecured line of credit and automatically be approved. Companies that specialize in unsecured lines of credit are available and should be contacted to assist with the substantial preparation that is necessary. Professional business finance consulting firms maintain contacts and affiliations with lending institutions that offer unsecured lines of credit. It is extremely important that the business owner work with one of these firms instead of approaching the bank directly. The application process is somewhat complicated and documentation must be properly formatted and compiled to avoid unnecessary rejections.
Business owners can no longer rely on the equity in their real estate holdings to finance their business expansions and growth. Despite the fact that they paid high fees for the availability of home equity lines of credit, even business owners with excellent credit scores and excess equity in their properties are finding it impossible to access their credit lines. The main reason is that banks have virtually stopped providing homeowners access to the equity in their properties as lines of credit. Home Equity Lines of Credit have been frozen by most major lenders because declining property values have made these cutbacks necessary. IndyMac, Washington Mutual and other major mortgage lenders have made decisions to rescind these credit lines, according to the terms of their contracts with borrowers.
Business owners have been especially hard-hit by these recent eliminations of their access to funds for their businesses. Many of them have used home equity lines for working capital during slow periods or as sources for cash during periods of expansion. The net result is that expected funds for business uses are not available, although they are still very necessary. The lack of time to make other arrangements because of this sudden policy change can severely impact a business owner's ability to survive a shortage of funds. Many business owners routinely paid back their lines of credit so that those funds are available for them to use at some pre-determined time in the future. That option is no longer available, leaving them without their usual funds.
In summary, Unsecured Business Lines of Credit are methods of financing that are still available to qualified borrowers who are also business owners. Firms that specialize in acquiring unsecured lines of credit should always be involved in this application process. The applicant will need assistance in properly preparing and organizing his documentation for submission to lenders. A firm that specializes in this type of financing will be able to present the borrower as the "perfect applicant" because its business is to assure that all aspects of the application adhere to the current credit, submission and underwriting guidelines of each individual bank. This very important initial step in the process will greatly enhance the business owner's potential to be successfully approved for an unsecured line of credit.
Milton Franklin, a graduate of Wharton Business School, is a business financing consultant with twenty-four years as a specialist in financial services. He is currently a Founder and Managing Member of Nationwide Equipment Leasing LLC, an equipment leasing company that also offers Unsecured Lines of Credit as one component of its Business Financial Products Suite. His company focuses on providing solutions that help business owners overcome the obstacles created by the current economic and financial crisis in the United States. He can be reached at 800-395-4908. Request a free copy of his Special Report, "The Solution: Unsecured Line of Credit" from http://www.neleasing.com/application-form.cfm by selecting Unsecured Line of Credit Information.
Article Source: http://EzineArticles.com/?expert=Milton_Franklin
Unsecured Lines of Credit can be obtained in roughly 4 to 6 weeks but should never be applied for directly by the borrowers themselves. The borrower, although qualified, cannot simply walk into a lending institution or bank for an unsecured line of credit and automatically be approved. Companies that specialize in unsecured lines of credit are available and should be contacted to assist with the substantial preparation that is necessary. Professional business finance consulting firms maintain contacts and affiliations with lending institutions that offer unsecured lines of credit. It is extremely important that the business owner work with one of these firms instead of approaching the bank directly. The application process is somewhat complicated and documentation must be properly formatted and compiled to avoid unnecessary rejections.
Business owners can no longer rely on the equity in their real estate holdings to finance their business expansions and growth. Despite the fact that they paid high fees for the availability of home equity lines of credit, even business owners with excellent credit scores and excess equity in their properties are finding it impossible to access their credit lines. The main reason is that banks have virtually stopped providing homeowners access to the equity in their properties as lines of credit. Home Equity Lines of Credit have been frozen by most major lenders because declining property values have made these cutbacks necessary. IndyMac, Washington Mutual and other major mortgage lenders have made decisions to rescind these credit lines, according to the terms of their contracts with borrowers.
Business owners have been especially hard-hit by these recent eliminations of their access to funds for their businesses. Many of them have used home equity lines for working capital during slow periods or as sources for cash during periods of expansion. The net result is that expected funds for business uses are not available, although they are still very necessary. The lack of time to make other arrangements because of this sudden policy change can severely impact a business owner's ability to survive a shortage of funds. Many business owners routinely paid back their lines of credit so that those funds are available for them to use at some pre-determined time in the future. That option is no longer available, leaving them without their usual funds.
In summary, Unsecured Business Lines of Credit are methods of financing that are still available to qualified borrowers who are also business owners. Firms that specialize in acquiring unsecured lines of credit should always be involved in this application process. The applicant will need assistance in properly preparing and organizing his documentation for submission to lenders. A firm that specializes in this type of financing will be able to present the borrower as the "perfect applicant" because its business is to assure that all aspects of the application adhere to the current credit, submission and underwriting guidelines of each individual bank. This very important initial step in the process will greatly enhance the business owner's potential to be successfully approved for an unsecured line of credit.
Milton Franklin, a graduate of Wharton Business School, is a business financing consultant with twenty-four years as a specialist in financial services. He is currently a Founder and Managing Member of Nationwide Equipment Leasing LLC, an equipment leasing company that also offers Unsecured Lines of Credit as one component of its Business Financial Products Suite. His company focuses on providing solutions that help business owners overcome the obstacles created by the current economic and financial crisis in the United States. He can be reached at 800-395-4908. Request a free copy of his Special Report, "The Solution: Unsecured Line of Credit" from http://www.neleasing.com/application-form.cfm by selecting Unsecured Line of Credit Information.
Article Source: http://EzineArticles.com/?expert=Milton_Franklin
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