BUSINESS-unsecured business lines of credit, unsecured term loans, working capital,
business only purchase (no real estate),start-ups
COMMERCIAL-start-ups, cash-out refi, private/hard money,gas station/c-stores
Franchise-start-up, equipment for new franchise,working capital, territory purchase,
term loans,
Private/Hard Money-up to 70% (usually 50-60%)up to 5 yrs. %only, all business types,
Contractors/Transportation/Medical-accounts receivable factoring
Monday, May 30, 2011
Quick Unsecured Loan Overview:
UBLOC-unsecured business line of credit-similar to business credit card
Amount-$10k to 100k-if partner's-up to 200k
Credit: 720+, 45% revolving credit utilization, no negatives of any kind
Income-stated or projected if start-up
Rates-8%-12.99%
Initial period-no interest for 6 months or very low teaser rate
Repayment-revolving but generally 1-2% of outstanding amount
Access-business credit card, debit card, check, cash request
Fees-4-5%
Funding: 3-8wks
Used For: Any business purpose, especially working capital, start-ups, franchise purchases, combination with other financing
Time in Business: No seasoning but business identity (ein#) required
Amount-$10k to 100k-if partner's-up to 200k
Credit: 720+, 45% revolving credit utilization, no negatives of any kind
Income-stated or projected if start-up
Rates-8%-12.99%
Initial period-no interest for 6 months or very low teaser rate
Repayment-revolving but generally 1-2% of outstanding amount
Access-business credit card, debit card, check, cash request
Fees-4-5%
Funding: 3-8wks
Used For: Any business purpose, especially working capital, start-ups, franchise purchases, combination with other financing
Time in Business: No seasoning but business identity (ein#) required
Sunday, May 15, 2011
Business Loan Overview:
Here are some of the lending niches available to Business Owners:
UNSECURED BUSINESS LINES OF CREDIT: $25k to $250k. Very good credit required but no
income verification and can be used for any business purpose. Works great for start-ups, working capital, funds needed to close a deal with seller financing.
Microloan to 25k for any business purpose. Start-ups fine. Installment loan.
Business installment loan to 50k. 6 months in business required. Credit to 600.
Unsecured business line of credit to 100k. 3 yrs of business required.
Private/Hard money loans for investment,cash out, commercial property. 5 yrs. interest
only, 50-80% ltv, rates 8-11%. Creative use of equity such as combining other collateral, using market value rather than purchase price. Qualifying usually from
business cash flow of property. Credit not usually an issue.
Equipment financing. Sale/leaseback for start-ups to 30k. Otherwise, usually 100%
financing of equipment costs.
Gas station underground tank financing. Installment loans over 5-7 years.
Seller held notes-secured and unsecured. All considered with some seasoning-usually
minimum of 6 months.
UNSECURED BUSINESS LINES OF CREDIT: $25k to $250k. Very good credit required but no
income verification and can be used for any business purpose. Works great for start-ups, working capital, funds needed to close a deal with seller financing.
Microloan to 25k for any business purpose. Start-ups fine. Installment loan.
Business installment loan to 50k. 6 months in business required. Credit to 600.
Unsecured business line of credit to 100k. 3 yrs of business required.
Private/Hard money loans for investment,cash out, commercial property. 5 yrs. interest
only, 50-80% ltv, rates 8-11%. Creative use of equity such as combining other collateral, using market value rather than purchase price. Qualifying usually from
business cash flow of property. Credit not usually an issue.
Equipment financing. Sale/leaseback for start-ups to 30k. Otherwise, usually 100%
financing of equipment costs.
Gas station underground tank financing. Installment loans over 5-7 years.
Seller held notes-secured and unsecured. All considered with some seasoning-usually
minimum of 6 months.
Sunday, May 1, 2011
More Reasons We're Needed For Financing:
Read the following and give me a call. Not many choices out there. Our niche programs
can make the difference-Jim-941-356-7511
Business Financing
How to Finance a Business Purchase
There still aren’t too many ways to finance the purchase of a business.
Here are the primary methods:
Buyer Financing:
Some buyers may have the cash available to purchase the business. Some may elect to use equity in their residence or other real estate. Others may have other assets that they can sell or borrow against.
Bank Financing:
Banks may lend against a buyer’s assets as described above. They may also lend against the assets of the business, assuming there is sufficient value to support the loan. The business will also have to make sense to the bank, regardless of the asset value. In fairness to the banking system, many of the figures supplied by business owners have very little relationship to the actual earning power of the business.
Venture Capital Firms:
These firms do not, as a practice, lend to small or even many mid-size businesses unless tremendous growth is anticipated. They also usually expect an equity position in the company.
SBA Loans:
What is the SBA? The SBA is the United States Small Business ADministration that has been in exisistence since the 1950’s. The 7a SBA program allows customers to obtain financing for a variety of reasons which includes business acquisiton financing. This financing allows banks to offer more favorable terms than are normally available. In fact, some banks offer terms of up to 10 years with no balloon payment and no prepayment penalties on these business acquisitons. In addition, business acquisitions that include the commercial real estate can be financed for longer fully amortizing terms.
SBA Checklist | SBA Document Checklist | Insurance Requirements | Landlord Requirements
SBA have become more popular. There is now some competition among lendors for these loans. Many banks offer them, but the preferred SBA lenders seem to have the upper-hand in both acceptance and service.
Other Sources:
This category includes family, friends. credit cards, and leasing companies. Some suppliers hae been known to assist in the financing of a small business.
Seller Financing:
This is, by far, the largest source of financing available for the purchase of a business. Many industry experts say about 90 percent of small businesses sell with, or perhaps, because of, the seller financing a good portion of the sale price. Buyers have much more confidence in the decision to purchase a business when the seller is willing to assist in the financing. The buyer has confidence that the seller believes that the business will service the debt, in addition to providing a living wage.
(This information was taken from the Today’s Business Scene newsletter copyright 2001 Business Brokerage Press)
can make the difference-Jim-941-356-7511
Business Financing
How to Finance a Business Purchase
There still aren’t too many ways to finance the purchase of a business.
Here are the primary methods:
Buyer Financing:
Some buyers may have the cash available to purchase the business. Some may elect to use equity in their residence or other real estate. Others may have other assets that they can sell or borrow against.
Bank Financing:
Banks may lend against a buyer’s assets as described above. They may also lend against the assets of the business, assuming there is sufficient value to support the loan. The business will also have to make sense to the bank, regardless of the asset value. In fairness to the banking system, many of the figures supplied by business owners have very little relationship to the actual earning power of the business.
Venture Capital Firms:
These firms do not, as a practice, lend to small or even many mid-size businesses unless tremendous growth is anticipated. They also usually expect an equity position in the company.
SBA Loans:
What is the SBA? The SBA is the United States Small Business ADministration that has been in exisistence since the 1950’s. The 7a SBA program allows customers to obtain financing for a variety of reasons which includes business acquisiton financing. This financing allows banks to offer more favorable terms than are normally available. In fact, some banks offer terms of up to 10 years with no balloon payment and no prepayment penalties on these business acquisitons. In addition, business acquisitions that include the commercial real estate can be financed for longer fully amortizing terms.
SBA Checklist | SBA Document Checklist | Insurance Requirements | Landlord Requirements
SBA have become more popular. There is now some competition among lendors for these loans. Many banks offer them, but the preferred SBA lenders seem to have the upper-hand in both acceptance and service.
Other Sources:
This category includes family, friends. credit cards, and leasing companies. Some suppliers hae been known to assist in the financing of a small business.
Seller Financing:
This is, by far, the largest source of financing available for the purchase of a business. Many industry experts say about 90 percent of small businesses sell with, or perhaps, because of, the seller financing a good portion of the sale price. Buyers have much more confidence in the decision to purchase a business when the seller is willing to assist in the financing. The buyer has confidence that the seller believes that the business will service the debt, in addition to providing a living wage.
(This information was taken from the Today’s Business Scene newsletter copyright 2001 Business Brokerage Press)
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