Commercial Loans and Finding Investors or Lenders Online

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Many folks that would like to start a business, or expand their business into something great will go and look for a venture capitalist, or an angel investor. Especially when they find out that they can't get all the money they need from a local bank because they don't have the collateral to put up. This often happens when an entrepreneur has every single dollar he has/had invested in his own company already. From a risk reward standpoint, and considering the way that bankers do business, often entrepreneurs get frustrated, and they turn to other sources.

But where do they turn you ask, and what is the best way to get a commercial loan or perhaps take on an investor who doesn't require much equity - where should they start looking? Well, in attempting to answer this question, I remember an interesting article I read not too long ago the Wall Street Journal. The article was titled "Peer to Peer Loans - Business Owners Grow-Fed up with Banks, Entrepreneurs Turn to Internet Sites," by Angus Lotten published on June 16, 2011. The article stated;

"The website works like eBay style marketplaces, matching borrowers to lenders. Two of the largest websites of this type have generated more than $500 million in personal loans in the past five years. And while most of the loans are used to pay off credit cards, the portion of the funds used to finance small businesses is rising."

This is quite interesting isn't it? This is something completely new, but it makes sense in our new information age, especially considering on how everything is interconnected, and how social networks are supposed to operate. Imagine how many jobs could be provided each time $100 million is lent to small businesses? These are small businesses which are expanding their operations, or just starting, and that money will be used to hire more employees, buy equipment, and all of that activity will spur on the economy, and also increase the tax base.

In other words, I see it as all good, and I got to thinking the other day about all this, and it appears to me that this would have been great to have in years past. For instance, before retirement I ran a franchising company, and we always had franchisees who were looking for funds to start their business, and it was amazing how local banks would give them the runaround, and cost us precious time in getting their businesses started.

Maybe if this trend continues, we can see better job growth, better lending practices, and better use of money, at lower interest rates due to the bidding aspect, sure sounds like free-market capitalism to me - Internet style even. Indeed I hope you will please consider all this and think on it. If you have such a new concept up and running, please shoot me an e-mail, because I would love to hear what you are doing. Let's talk about it, so I can write on it.

Commercial Hard Money Loans - Debunking The Myths

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While commercial hard money loans might sound as if they come out of a Mafia movie, there is nothing dangerous or especially risky about being granted one of the many commercial loans that are on offer by the different independent financial institutions.

What are Commercial Hard Money Loans?

The word 'hard' can be misleading for many people who are applying for this sort of financing. All that it means is that the loan is guaranteed by an asset or a piece of immovable property. The loan will be granted on the strength of the value of the asset in question. Many developers use these type of loans when they are attempting to develop a piece of land into a commercial property that has investment potential as well as the potential of future earnings that will more than cover the loan amount.

The value of these loans is that they are usually funded by private investors. It is worthwhile finding a company who is able to match up potential investors to loan applicants. They will ensure that the loan is completely legal as well as being secured by the property itself and not the personal assets of the owner. Most of the private investors in America today are likely to be private firms who consider that issuing commercial hard money loans is a way of doing business that guarantees them a substantial return on investment. These loans are not usually granted over an extended loan term.

This type of loan is not like a conventional mortgage that is repaid over 30 years. The term is usually between 1 and 5 years and the interest rates are much higher than a conventional loan. While the top end of the scale of interest rates can reach up to 15 % it is still a way of obtaining finance for an investment without having to wait for months or go through an extensive process of paperwork and credit checks.

It is always wise to remember that commercial hard money loans will not cover the full value of the property and it is unusual to find any commercial hard money lender that will over about 60% of the value of the property. If you are buying property then you will have to fund the difference from another source or be prepared to fund it yourself. Commercial hard money loans are granted based on a logical and achievable plan to pay the money back on time and most commercial hard money lenders will need to see a considerable amount of property related experience.

They will not be inclined to lend money to first time investors, unless the risk is very low. Commercial hard money loans are a solution to investment opportunities that many banks have refused due to the economy.

Cash Advance Business Financing Is It Right for Your Business

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Since the economic downturn, small businesses have found it difficult to secure business loans, a fact that reflects just how much the downturn affected banks. But if you need a loan for your small business, you may be in luck. That's because a new trend of cash advanced business financing that's ahead of current regulation standards is helping small business owners to get their dreams off to a good start.

Not like traditional loans

Officially known as merchant cash advances, the advances help businesses-typically those that receive frequent credit card payments-receive the start up or expansion money they need when they don't meet the requirements for a bank loan: excellent credit and sizable collateral. What's more, the advances don't have the terms of a traditional loan; instead of having set payments over a certain period of time, they're granted in exchange for a certain percentage of a business' sales. That means if you earn $20,000 in your first month, about $6,000 of it might go toward repaying what you owe.

What you can expect to pay?

Merchant services that offer advances collect their money by taking a set percentage from a business' credit transactions. The percentage varies by merchant service, but 30% or lower is usually sought after, though services that charge more still help businesses achieve something they couldn't without an advance: open their doors and start a customer base that will still be there after the advance is repaid. In most cases, an advance is repaid within 12 months.

What are the advances used for?

Advances are granted under the auspices of business advancement, an end to which numerous things could contribute. Currently, many businesses use their advance for some of the following expenses:

1. Green improvements

Improving your building's energy efficiency can drastically reduce its annual utility bills. According to energy efficiency research, an interior lighting retrofit alone could reduce its annual electric bill by 30%.

2. Expansion

Whether you wish to expand at your current location or start another location, merchant services can give you the money you need to stop planning to succeed and actually do it.

3. Renovations

If your building is aesthetically compromised, the appearance could impact how customers perceive your offerings. Cash from a merchant service could give your business the facelift it needs to keep up with competitors.

4. Advertising

If your business is new and growing, it's important to advertise its offerings to build a strong customer base. After your advance is repaid, your customers will still be there.

Business Loans Are Tougher to Qualify For Compared to a Merchant Cash Advance

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Restaurants are thought to be a part of the largest risk business ideas. This makes it painstakingly tough for a new culinary merchant to attain necessary business loans, both when opening the business and when innovation or upgrades are warranted. A small business owner may wait weeks or even months to hear a peep from the local bank, and in the time being, the business could possibly go out of business.

An additional choice for acquiring business Loans is a merchant cash advance. These financing products fall into the category of credit card receivables factoring. Small business factoring is a product whereby a lender offers the merchant funds in exchange for a lower rate on future Visa-MasterCard revenues. That translates as follows: the credit card factoring lender will give you financing in exchange for a portion of your anticipated Visa-MasterCard revenues in the future.

Approval is frequently available within a day or two and the working capital is in your bank account within about ten working days - often less. No collateral is needed because the program is based upon future revenues.

Because the payment term is tied to actual receipts, a bad month's business does not need "creative bookkeeping" to keep up with a fixed payment amount. The one stipulation is that the small business owner must stick to the predetermined program or the small business owner can be held accountable for repayment.

The truth is that many merchants, particularly beginners, simply cannot meet the approval stipulations set forth by the conventional banking industry. This does not necessarily mean that the merchant is performing badly or that the small business owner isn't reliable.

Most of the time the sole problem is the idea that the establishment is too new and has not had the time to establish a lengthy reputation and credit rating. Obtaining a merchant cash advance with a merchant account factoring agreement makes good business sense under these types of situations.

Since the requirements and qualifications are minimal; the program is much easier to get approved for compared to standard financing. Deals less than $75,000 usually do not require tax returns. The application is a single page; compare that to a bank loan. Aside from that a photo ID, merchant statements, and bank statements are all you should need. Getting your answer normally takes under 24 hours. Funds are usually released in under 1 week. That is very fast in today's world where banks are not lending.

Business Loans - For Whatever The Purpose Is

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Do you want support while starting up a new business for yourself? Has this been your lifelong dream which was held back all these years only because of finance reasons? Well, there is no reason why it should be that way anymore. Business loans are available especially to make these dreams of yours come true. You can finally start of your business on the grand scale you wanted to do with luxurious amounts to exploit from loans of this type.

There are a number of choices for a borrower to choose from. To begin with every borrower has the option of picking either a secured loan or an unsecured loan. The secured cash advance comes with amounts beginning at ??500 and extending to a maximum of ??100,000. These are given out for varying periods ranging from 1 to 25 years and placement of an asset as collateral is an absolute compulsion. If a businessman decides to go in for the unsecured cash advance he will have smaller amounts at his service. These amounts range anywhere in between ??1000 and ??25000 and the tenure is shorter too, which is, a term of 1 to 10 years. Unlike secured loans there is no security clause and to compensate for it the interest rates are higher.

Whether it is a business you are starting on a big scale like a new restaurant you plan on opening or a hairdressing salon, business loans is the right option for you. You do not need to ask for help from your family and close friends and you can now do all of this independently. All you have to do is fulfill a few eligibility terms after which you can go straight ahead and apply.

The application procedure is extremely simple as well. The period between application and approval and delivery of funds is less than 24 hours.

Bridge Loans Can Save Your Business - Bridge Financing Can Save an Economy

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A bridge loan can save your business, your business can help collectively save the economy. We live in a systemic economy where like it or not, my failure can slowly become your failure, or where a bank's failure can become your loss of opportunity. Once those banks fail, you may or may not be able to get credit you were once able to from another bank. It isn't socialist ideology to believe that we are all to a certain degree economically connected. For this reason I believe bridge loans do not just benefit the businesses that utilize them, but also the banks who are not directly associated with the business, and society as a whole.

What is a bridge loan? It is a short term loan that businesses can usually acquire within one week and usually is for a term of no more than one year. The goal of a short term commercial financing product is primarily to acquire capital that would otherwise be procured through a commercial mortgage, but used when a commercial mortgage is not readily available. By obtaining a bridge loan a business can eliminate the demands of creditors and get your business into a comfortable position financially. Much like short term personal financing, You need to be careful not to abuse the use of these products or you'll find yourself in a worse financial situation.

What does it take to get an approved on a commercial financing product like this? Typically any real estate or business property can be used to secure the bridge loan. Since the loan is secured by a hard asset, the requirements for getting the loan are quite lenient. As stated earlier, most bridge loans are approved and funded in about one week. This makes them an ideal safety net for businesses who don't want their credit or cash flow harmed during difficult times. These loans can protect you from the paradox of not being able to get a loan due to credit, and having worse credit due to not being approved for financing.

The commercial financing products, if used properly save businesses, save banks from greater losses, save jobs and likely help protect economies. The loans, bridge the gaps in a company's cash flow that a long term loan isn't capable of providing. The financing mechanisms make it possible to obtain the capital many business owners believe is impossible to obtain. Commercial financing is changing to a more collateral-based type of lending and the days of cheap money are long gone.

A bridge loan can save your business, your business can help collectively save the economy. We live in a systemic economy where like it or not, my failure can slowly become your failure, or where a bank's failure can become your loss of opportunity. Once those banks fail, you may or may not be able to get credit you were once able to from another bank. It isn't socialist ideology to believe that we are all to a certain degree economically connected. For this reason I believe bridge loans do not just benefit the businesses that utilize them, but also the banks who are not directly associated with the business, and society as a whole.

What is a bridge loan? It is a short term loan that businesses can usually acquire within one week and usually is for a term of no more than one year. The goal of a short term commercial financing product is primarily to acquire capital that would otherwise be procured through a commercial mortgage, but used when a commercial mortgage is not readily available. By obtaining a bridge loan a business can eliminate the demands of creditors and get your business into a comfortable position financially. Much like short term personal financing, You need to be careful not to abuse the use of these products or you'll find yourself in a worse financial situation.

What does it take to get an approved on a commercial financing product like this? Typically any real estate or business property can be used to secure the bridge loan. Since the loan is secured by a hard asset, the requirements for getting the loan are quite lenient. As stated earlier, most bridge loans are approved and funded in about one week. This makes them an ideal safety net for businesses who don't want their credit or cash flow harmed during difficult times. These loans can protect you from the paradox of not being able to get a loan due to credit, and having worse credit due to not being approved for financing.

The commercial financing products, if used properly save businesses, save banks from greater losses, save jobs and likely help protect economies. The loans, bridge the gaps in a company's cash flow that a long term loan isn't capable of providing. The financing mechanisms make it possible to obtain the capital many business owners believe is impossible to obtain. Commercial financing is changing to a more collateral-based type of lending and the days of cheap money are long gone.

Available Business Loans

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Business loans are directed towards business owners to help expand or start up a business. The banks offer loans between ??1,000 and ??25,000. Typical repayment periods for the loans are between 10 months to 10 years, depending on your financial situation so there is quite a lot of flexibility.

One of the biggest advantages that the banks offer is the fixed interest rates they offer for the life of the loan. This fixed rate then puts less worry to the person taking out the loan as they are not going to be paying any more back then the rate that they currently agreed with the bank to start with.

One key feature that most banks offer when the loan has been agreed is that the loan will be paid immediately into the account of the person taking out the loan, usually the loan that you agree to take out is credited to you the same day as agreeing taking out the loan.

One of the biggest assets to small businesses are business overdrafts, these overdrafts are great for short term fluctuations in cash for small businesses that may need extra cash at some time, maybe to buy stock or help expand the business

Of course shopping around to find the best loan rates is advised but beware that not all banks offer fixed rate loans, a comparison website is the best bet as it will allow you to compare all the different loans from all the different banks on one simultaneous page, a lot quicker and more efficient,

Another tip for getting a loan is to get an appointment with your current bank manager and inform him of your current need and see if he will do you a special deal or rate so that you stay with your current bank, usually they will value your custom a lot more if your already with the bank and looking to stay with the bank.

So as you can see there are many advantages to getting a business loan, advantages that most people wouldn't think are there, but finding te right deal for you is the trick, there are plenty of places to find the right deal, it's just about looking in the right place to find it.

If your after just a small amount of capital you may be entitled to help from the government, there are schemes to help businesses get through the times that are key to the growth of the business and the government like to encourage this with giving support in various ways. There are leaflets on your local council website that will explain what there is available and how to go about getting it.

Business loans are directed towards business owners to help expand or start up a business. The banks offer loans between ??1,000 and ??25,000. Typical repayment periods for the loans are between 10 months to 10 years, depending on your financial situation so there is quite a lot of flexibility.

One of the biggest advantages that the banks offer is the fixed interest rates they offer for the life of the loan. This fixed rate then puts less worry to the person taking out the loan as they are not going to be paying any more back then the rate that they currently agreed with the bank to start with.

One key feature that most banks offer when the loan has been agreed is that the loan will be paid immediately into the account of the person taking out the loan, usually the loan that you agree to take out is credited to you the same day as agreeing taking out the loan.

One of the biggest assets to small businesses are business overdrafts, these overdrafts are great for short term fluctuations in cash for small businesses that may need extra cash at some time, maybe to buy stock or help expand the business

Of course shopping around to find the best loan rates is advised but beware that not all banks offer fixed rate loans, a comparison website is the best bet as it will allow you to compare all the different loans from all the different banks on one simultaneous page, a lot quicker and more efficient,

Another tip for getting a loan is to get an appointment with your current bank manager and inform him of your current need and see if he will do you a special deal or rate so that you stay with your current bank, usually they will value your custom a lot more if your already with the bank and looking to stay with the bank.

So as you can see there are many advantages to getting a business loan, advantages that most people wouldn't think are there, but finding te right deal for you is the trick, there are plenty of places to find the right deal, it's just about looking in the right place to find it.

If your after just a small amount of capital you may be entitled to help from the government, there are schemes to help businesses get through the times that are key to the growth of the business and the government like to encourage this with giving support in various ways. There are leaflets on your local council website that will explain what there is available and how to go about getting it.