Monthly Archives: February 2010

SBA Loan Financing, The Major Benefits

For business owners considering SBA financing as a way to either purchase or refinance a commercial property for their business, there are many distinct benefits over comparable conventional bank financing with the SBA programs.    The main benefits of SBA financing include, higher loan to value, reliability of closing, and good loan programs.

SBA Loan Financing

90% financing via the SBA loan program is common on purchases whether via the SAB 7a program or the 504 program.  85% financing on refinances is common on the 7a program as well.  Comparable conventional loans are for the most part capped at 65 -70% of purchases and 55% – 60% on refinances. 

For most small businesses keeping as much cash in the business, and not tying it up in there building is critical.  Reserve are absolutely needed to help weather the ups and downs of day to day business.  Running out of cash is one of the leading causes of failed businesses. 

SBA Loan Financing – Reliability of Closing

Banks are very skittish these days.  They underwrite files with more of an attitude of “how can we decline the file” rather than “how can we get this done.”  You probably have friends (or you may have lived through this yourself) with horror stories of being tied up with a convention bank for months, waiting for them to make some kind of decision.  Being strung along, month after month. 

The officer at the bank maybe telling you some kind of issue they are trying to figure out or get over, but for the most part the real issue is there is something going on internally with the bank.  Perhaps they have a liquidity issues, have lost their confidence in taking more risk, etc. 

The point is that the backing that the SBA provides for banks, makes them much more willing to lend.  90% of the loan (on SBA 7a’s) to guaranteed by the government.  This additional guarantee is often the difference between a funded loan or a drawn out decline.  SBA financing is easily the most reliable form of financing in the business today for small business owners. 

SBA Financing – Good Terms

The SBA 504 program offers the longest fixed periods in the market as well as very low rates on purchase transactions.  For example, as of this writing the SBA piece on the 504 is now at 5.14%, fixed for 20 years…  This is the lowest it has ever been.  And again this is at 90% financing. 

Longer amortization periods also equal better cash flow for businesses.   Most conventional banks, if they are really willing to lend, won’t go over 20 years.  Many are capped at 15 year schedules.  The SBA 7a allows for 25 years and also enables the borrower to add working capital, consolidate debt and perform renovations to their property.

 

Jeff Rauth is President of Commercial Finance Advisors, Inc . They close commercial real estate loans between $400,000 – $5,000,000. Reach him at 248 885-8797 or at SBA 7a or SBA Business Loan or SBA Lenders

Article Source:http://www.articlesbase.com/banking-articles/sba-loan-financing-the-major-benefits-1294469.html

Find Out How To Get A Personal Loan With Bad Credit

If you have bad credit, don’t feel alone, as there are tens of thousands of people that have bad credit. The good news is that many loan companies are now starting to use the more personal approach instead of a totally mechanized approach to approving and declining loan applications. Many of these companies have realized that having bad credit does not mean that someone is a bad person, since bad credit can result from a wide variety of different causes, many of which may be completely out of the control of that person. Such reasons include large and unexpected medical bills, a job layoff, a messy divorce, or many other things which have no bearing on the intentions of the person to managing their finances.

Just because you have bad credit does not mean that you cannot get a personal loan. It may mean that the traditional sources of lending may not want to talk to you about your loan, such as banks or credit unions. But there are several steps involved in getting a bad credit personal loan.

First of all, just how bad is your credit, or do you just having a feeling that it is bad? Without knowing exactly how bad it is, you could be spinning your wheels in shopping for your best personal loan option, so your first step is to get copies of your credit reports from the three major credit bureaus and find out exactly how bad is bad. One of the things you may be surprised to find is that your credit is not as bad as you think, and that your credit report contains errors, which you have a legal right to have corrected. Once those errors are corrected, your definition of “bad” may go up a few levels. Our web site below contains links to give you more information on the details of how to do this.

Next, even if you still have “bad” credit, you can still get a personal loan, although you are going to need to look beyond your local banks and credit unions. Keep in mind that shopping for a loan follows pretty much the same process as shopping for a new car or shopping for a piece of furniture. In other words, it is a very competitive market, and the interest rates and loan terms you will encounter are going to vary widely, so it is clearly in your best interests to shop around. Continue reading →

Get a Loan With Bad Credit Instantly

Getting loan with poor credit can prove to be a daunting task for those who don’t know much about such loans. If you know how to apply for such loans and what things to consider while applying, then you can get a loan with poor credit easily.

To begin with, it is important to keep in mind that a person with good credit is given preference over the bad one. However the person with poor credit can also get a loan but by paying higher amount of interest. Here it is crucial to select such lender who offers lowest interest rates than the rest.

There are several loan options available under bad credit loans. The most common among all are the secured bad credit loans and the unsecured poor credit loans. In case you are passing through a financial constraint and you are not sure about the returning time of loan, then you must go for unsecured bad credit loan option. These loans though are expensive in terms of interest rates, but they are totally risk free for your property. Continue reading →

How to Get Easy Personal Cash Loan the Easy Way?

Most people have tried getting a loan the hard way through a bank. If you have at least a decent credit history, you generally can make it through the seemingly endless questions and paperwork that lead to receiving money from the prospective lender. However, some folks are not so lucky. Maybe, they’ve made bad mistakes with money in the past, maybe they are going through a rocky patch in their life, or maybe, they have just been dealt a poor hand from the start. No matter what, however, the banks don’t care. If they feel that it will not be possible to at least break even on the potential loan, they will feel no obligation to give out money.

So where should these poor credit history folks go for a personal loan?

First, it is not a bad idea to consult your family about your economic problems. If possible, parents or grandparents are the best chance to get positive results. The worse case scenario: they will not lend you money, but they will point you to new ways to discover how to better manage money. In the best case scenario, you can get a loan with no interest to pay off and no time table to return it by. But just a quick word of advice: please do not take an advantage of this, make every intention to pay this money back and definitely do not view it as a gift. Even if your relatives don’t expect to get the money back, it will be a pleasant surprise the day you make an effort to return the favor. Continue reading →