Posts Tagged ‘financing’
Business Financing Advice – Commercial Lenders To Avoid
This business financing strategy article will describe the importance of avoiding “problem commercial lenders”. The article will NOT name specific lenders to avoid, but key examples will be provided to illustrate why prudent commercial borrowers should be prepared to avoid a wide variety of existing commercial lenders in their search for viable business financing strategies.
I have been advising business owners for over 25 years, and I have encountered many business financing situations which have involved commercial lenders that I would not recommend as a result. These problematic situations have especially involved commercial mortgage loans, business cash advance situations and unsecured working capital loans. As a direct result of these experiences and daily conversations with other commercial loan professionals, I do in fact believe that there are a number of commercial lenders that should be avoided. This conclusion is typically based on more than one negative experience or an obvious pattern of lending abuses.
I have published many commercial loan articles which are designed to assist commercial borrowers in avoiding business loan problems. One of the most serious business financing situations is a commercial lender that causes business loan problems for their commercial borrowers on a recurring basis. It is particularly this type of commercial lender which prudent commercial borrowers should be prepared to avoid unless viable alternative business financing options do not realistically exist.
Here are a few examples of why certain commercial lenders should be avoided.
BUSINESS FINANCING STRATEGIES AND COMMERCIAL LENDERS TO AVOID EXAMPLE NUMBER 1 – Yes or No?
I have published an article which discusses the tendency of many banks to say “YES” when they mean “NO”. Such banks will typically attach onerous business financing conditions to commercial loans instead of simply declining the loan. Business owners should explore other commercial loan alternatives before accepting business financing terms that put them at a competitive disadvantage.
BUSINESS FINANCING STRATEGIES AND COMMERCIAL LENDERS TO AVOID EXAMPLE NUMBER 2 – The Commercial Appraisal Process
For commercial real estate loans, commercial appraisals are an unavoidable part of the commercial loan underwriting process. The commercial appraisal process is lengthy and expensive, so avoiding commercial lenders which have displayed a pattern of problems and abuses in this area will benefit the commercial borrower by saving them both time and money.
BUSINESS FINANCING STRATEGIES AND COMMERCIAL LENDERS TO AVOID EXAMPLE NUMBER 3 – Think Outside the Bank
In smaller metropolitan markets, it is not unusual for a dominant commercial lender to impose harsher commercial loan terms than would typically be seen in a more competitive commercial financing market. Such commercial lenders routinely take advantage of a relative lack of other commercial lenders in their local market. An appropriate response by commercial borrowers is to seek out non-bank business financing options. It is neither necessary nor wise for commercial borrowers to depend only upon local traditional banks for working capital and business cash advance solutions. For most business financing situations, a non-local and non-bank commercial lender is likely to provide improved commercial financing terms because they are accustomed to competing aggressively with other commercial lenders.
BUSINESS FINANCING STRATEGIES AND COMMERCIAL LENDERS TO AVOID EXAMPLE NUMBER 4 – Meaningless Pre-approvals
Commercial borrowers frequently want a commercial lender to approve their commercial loan at the earliest possible point. The assumed benefit to this early business loan approval is that it will enable the commercial borrower to make other business plans which depend on the business financing being finalized.
Because an ethical commercial lender will treat any form of an approval very seriously, commercial borrowers should expect that a meaningful version of such an approval will not be realistically possible in just two or three days. Nevertheless there are commercial lenders who provide their own special version of a pre-approval within just a few days of receiving preliminary application information. Because this abbreviated approach to pre-approvals almost always produces unexpected surprises for the commercial borrower as the business financing process goes forward, commercial borrowers need to be extremely wary of any commercial lenders that take this approach.
Why do some commercial lenders provide such meaningless pre-approvals? There are two likely reasons. (1) To motivate the commercial borrower to stop considering other potential commercial lenders. (2) To provide a pre-approval that is similar to a structure prevalent with residential mortgage loans. Since many business loans are arranged by residential mortgage brokers who are frequently unfamiliar with common business financing procedures, this reason will be especially applicable when dealing with commercial lenders that specialize in dealing with residential mortgage brokers.
Copyright 2005-2007 AEX Commercial Financing Group, LLC. All Rights Reserved.
Cosmetic surgery Loans – Financing for Surgery Needs
Cosmetic surgery has become a very popular in our present culture of self-improvement and self-awareness. With advanced technologies, medical science has introduced many surgery plans to turn you beautiful and attractive. For undergoing cosmetic surgery, individual needs to spend good amount of money. For this purpose, cosmetic surgery loans have come into the financial market to get your surgery with easy process.
People are opting for cosmetic surgery to look better and overcome accident scars from the body. Cosmetic surgery loans assist the borrowers to pay amount used in the surgery.Cosmetic surgery loans can cover the total cost of cosmetic surgery plus reconstructive surgery.
Borrowers can avail the loan for meeting varied surgeries such as augmentation of breast, liposuction, facelift, neck lift, lip augmentation, chemical peel, thermage, removal of tattoo, eliminating the wrinkles on the face, eyelid surgery, buttock implants, facial implants, dentistry, birth marks, upper arm tucks, brow lifts etc. The cost incurred on these loans is different as it varies from surgery to surgery. Before applying for the cosmetic surgery loan, borrowers must consult his or her surgeon on the total spending so that financing covers all cost.
Plastic cosmetic surgery loans can be distinguished into two categories namely secured and unsecured. Borrowers can avail secured option for meeting major surgeries. In the secured option, borrowers have to pledge some valuable collateral against loan amount. While, in unsecured option of cosmetic surgery loans, borrowers do not require any sort of collateral against the loan amount. These loans are asset-free in nature and can be availed for minor surgeries.
Bad credit holders with late payments, arrears, IVAs, CCJs, defaults can also undergo the procedure of avail cosmetic surgery but at slightly high interest rate. Borrowers can do detailed research to find feasible interest rate.Online mode is considered as the best and cheapest way to locate the cosmetic surgery loans from the comfort of home or office.
Simuels Jack is an advisor of cosmetic surgery loans. For more information about medical loans, bad credit cosmetic surgery loans, cheap cosmetic surgery loans, visit http://www.badcreditcosmeticsurgeryloans.co.uk
Student Personal Loans- Financing Your Higher Education
Where there is a will, there is a way. Student personal loans are embodiment of this adage. Financial hurdles won’t ever again be a constraint in pursuing your desired career. If you are a bright student and want to pursue your higher education, whether graduation or post graduation or whatever, student personal loans help you afford all your studies expenses including the tuition fees, the examination fees, books cost, laundry charges, hostel fees or even transportation fees. If your studies require additional components like a computer, student personal loans even afford that for you. Many banks and financial institutions provide you with these loans. For the easy grant and your convenience you may even apply for these loans online.
To encapsulate, student personal loans pay for everything you need for your studies.
Eligibility domain:
You must be registered at a recognized college or university to avail student personal loans. You must provide the bank with your university or college enrollment certificates. Also you must provide the address of a place where you have been living for a minimum of last two years.
Some strategic points:
Student personal loans carry very low interest rates in comparison to other types of loans. And you can get further reduced rates by having a co-signer. Your father or any of your relatives can be a co-signer for you. This is especially helpful to the students who suffer from poor credit history. If the co-signer has a good credit history, it will fetch you very competitive interest rates and terms.
Repayment:
Student personal loans take due care of your studies and while in college all you need to care for are your studies. The repayment period starts after the six months of the completion of the course and you need to start paying the installments only when you have started earning a minimum of £15000 yearly. So you get an ample time to shape your career and finances as well.
Personal Car Loans: Financing Your Dream Car
Car is one of the preferred luxuries that allure you more usually. But whenever, you decide to buy a car of your choice finances come as barrier there and use to suspend your plan. However, it is the market that has taken care of every kind of your financial need and is ready to help even on such occasions. Now, personal car loans are available in the market that is mainly devised to help you get your desired car without bothering for the expensive price of car.
Personal car loans are provided usually utilizing the very car as collateral. Here, you are helped to get any sum depending upon the price of car you have decided to buy. However, for the loan amount you generally have finance for 90 to 100 percent of the car price that is liable to be repaid over a normal period of 1-7 years.
While, often you will have also to put submit your income proof, residential address, and valid driving license, personal reference including your phone bills, bank statements, and tax returns, and of course your credit report too. Having a good credit can definitely make your deal better, but you never have to worry for your bad credit while availing these loans. You too can have these facilities here but with a slightly higher rate of interest.
The rate of interest is not a constant factor here, it can depends upon a loan of factors such as, your financial profile, base rate, competition in the market, and even with the lenders’ policy. So, especially when you are new buyer, you should compare among the options well to get a better deal always.
These loans can be obtained either from the offline lenders or from online lenders depending upon your convenience. However, the online option can always be an easier way for you, as it consists of simpler processing and easier availability of the lenders.
Personal car loans now omit the hassle of price and help you get your desired car easily. It helps you get a car of any model or make-up, as you can find any sum here. These helps are too easier for every one of your, as circumstance is not a barrier and you can find your resort here, regardless of being your homeowner or non-homeowner.
Personal Bridging Loan: Financing Your Real Estate Deal
Finance is very much necessary in today’s world for you to live your life smoothly. But sometimes some obstacles come into your way when you need to take financial support from outside. Imagine a situation when you come through an attractive proposal of buying new property or starting or expanding your business or some other personal need. You thought of selling your property but the time it will take to get you the money is too long. By that time the opportunity you are given may be taken by some other person. Personal Bridging Loan will get you take advantage of that opportunity by giving you instant financial support.
Personal bridging loan can help you as interim financial help for your real estate deal as well as for other expenses too. However you generally feel this help in time you are unable to dispose the existing property instantly to payoff the cost new one. These loans are usually repaid after the sell off the existing property for that you get a general time period of 12 to 36 months.
The loan amount is not a constraint here you can find any sum depending upon the market value of the collateral. While you avail this loan you have to put a security against the loan that can be either the new property or the existing one. However, this loan has provision to allot you 70 to 80 per cent of the appraised value of your property as the loan amount.
You can find this loan somewhat costlier as the rate of interest usually remains higher here. This is only done for the shorter utility period of the loan that common in the financial market. You can avail this loan even with a bad credit condition; credit status has not much effect on the loan for surety of repayment here.
You can avail this loan either from traditional lenders or from the specialized lenders. The specialized lenders are expert on the subject and can help you in every condition. These lenders have simpler and easier processing that helps you avoid many worries while availing the loan. The internet is the best place to find these lenders there you can find a bunch of such lenders at a time.
As the name suggest, personal bridging loan is now pooling hefty money while you are dealing bigger projects. With this you never have to take bother of hectic sell off your existing property that helps you find the true appraised value in later. You can get the best advantage of soaring in the prices of real estate here, as you find here enough time ? the get the best prices of your existing property.
Business Loan Financing Alternatives
Applying for a small business loan can be a frustrating process for a business owner. Most institutions have grown a bit wary of small businesses and require extensive paperwork before making a business loan. For example, most will require 3 years worth of audited financial reports showing a profit, extensive applications and background searches and substantial collateral. From a banks perspective, collateral is a synonym for machinery or real estate.
However, few small businesses have hard assets as collateral. What they do have is growing orders from quality customers. And for many, these growing orders are the source of the problem. Why, because commercial and government clients always pay their invoices in 30 to 60 days.
Waiting 30 to 60 days to get paid can be a challenge for growing businesses because few can afford to wait. Few have the working capital to pay suppliers, employees and rent while waiting to get paid. At the same time, they know their invoices are almost as good as cash. Almost as good, but not quite.
But what if your clients paid their invoices in a couple of days? Would that strengthen your business and allow you to take on more customers? Would you still worry about having to pay employees and suppliers? You can achieve that using invoice factoring.
Invoice factoring is a little known business financing tool that has been gaining considerable traction in the USA and in Canada. Basically, a finance company (called a factoring company) advances you funds using your invoices as collateral. This provides your company with the working capital it needs to pay employees, suppliers and cover growing orders.
Factoring has a number of advantages over more conventional business financing options. First, factoring is easier to obtain that conventional financing. The biggest requirements are that your business be free of problems and have good clients. But the biggest advantage comes from its flexibility – the size of your financing is determined by your sales volume to credit worthy clients. This means that your financing grows dynamically with your business.
Although accounts receivable factoring is a flexible alternative, it’s not well suited for every business. For example, invoice factoring is not a good solution for companies that need funds to buy real estate or plant equipment. However, factoring is very well suited for companies that need working capital to cover operating expenses.
Poor Credit Loans: Financing Made Easy Without Any Constraints
So far, financial services available in the market have provided satisfaction to the borrowers. As expected, these loans are meant to help those borrowers who face considerable problems to fulfill their various needs. Poor credit loans are a branch of the loans whose sole objective is to offer finances to those borrowers who have a history of credit problems.
Poor credit loans, as the name suggest are especially designed for borrowers who are facing problems like IVA, county court judgments, arrears etc. these problems occur when the borrower has accumulated loans to fulfill various needs and could not repay them due to some problems like loss of employment, job transfer, sudden illness etc. certainly it affects a lot as it damages the financial standing of the borrower. To allow the borrower a bit of respite and flexibility, lenders offer these loans. The loans are crafted to suit the borrower’s condition and are classified in to secured and unsecured form. This implies that a borrower has the option to choose among the two available formats based on his needs and circumstances.
The secured form can be availed by attaching any valuable asset as security against the loan amount. Here the borrower can access bigger amount which is based on the equity value of collateral. Amount in the range of £5000-£75000 can be accessed at comparatively low rate of interest. On the other hand, unsecured option is meant for those borrowers who do not wish to attach any collateral or do not have any. The amount granted is smaller which is usually in the range of £1000-£25000. Interest rates are comparatively higher than secured option.
With assistance from the loan amount, borrower can easily execute various demands like home improvement, buying a new or used car, wedding expenses, educational purposes etc. But most of the borrowers avail this loan to pay off their outstanding debts. By repaying the debts the credit score can be improved which in turn allows the borrower to avail future finances at better rates.
Poor credit loans can be sourced from various lenders like banks and other financial institutions. But emphasis should be given more towards online lenders as they are a major source of low rate loans. Further they don’t charge any processing fee for the loan amount. Borrower should ensure to make the payments which helps in the future as well as fulfill his various desires.
Online Personal Loans: Financing the Entire Personal Needs of Yours
People have witnessed major changes with the time. Now, every thing has become faster, so you are availing even financial helps in lesser time. The attachment of online services with the financial market has really made your way easier and now you are helped get your procurement in considerably lesser time. Since, you may vie a faster delivery even for your personal financial needs, online personal loans are provided to you. You can apply for these loans online that help you reduce lengthy documentation processing and make your deal faster.
The need of a faster procurement can be backed by many reasons that enforce you usually. Here Online Personal Loans come to reduce the major hurdle of processing and provide a simple way to get your resort. These loans are easily available with online lenders that are available round the clock and can be asked any time for the help through a simple online application.
These loans are basically devised to finance every kind of your personal financial needs. The common expenses that can easily dispensed with these loans are college fees, outstanding bills, wedding cost, luxury holidays, buying a car, and even to consolidate the debts.
You can avail any sum here depending upon the personal circumstances you have while availing the loan. The amount depends upon the collateral’s market value when it is availed in secured form while, it depends upon your financial prospect when it comes to you in unsecured form. However, the range of amount that is generally available with these loans varies from £5000 to £75000 with a repayment terms of 1 to 25 years accordingly.
The rate of interest too varies with your personal circumstances that remain comparatively lower with secured form and higher with unsecured form. However, there are some other factors too that affect the rate of the loan that are your credit profile, base rate, competition in the market and even with lender’s policies.
Online personal loans help you solve your financial problem in lesser time and save you from the worry of lengthy processing. With this, you never have to bother for any of your personal expenses; here you can find the appropriate sum matching your personal profile. These loans enabled every one to get his/her resort, as circumstances are not barrier here while availing these helps.
Loan Financing for Land in California
Financing Land in California
California Land Loan Overview:
The intent of this article is to get you thinking in the right direction so you know what kind of California land to buy and what you can reasonably expect as you get started in the process of dealing with a land lender in California.
California Land Financing Budget (Example):
Land Purchase Price $300,000 Land Purchase Price
Soft Cost of Construction $ 40,000 Plans and Permits
Hard Cost of Construction $350,000 Construction Costs
Closing Costs $ 22,000 Fees, Title, and Escrow.
5% Misc. Reserve $ 17,500 5% of Construction Costs
Loan Interest Reserve $ 35,000 Interest On Amount Drawn
Total Building Cost $764,500
Appraised Value $800,000 Estimated Value of Land with Building Completed
Down Payment $191,125 25% of $764,500
Benefits of California Land Lenders
Loan officers dealing with California land should be able to assist you with the following information:
1. Assessment of the estimated yearly taxes, insurances, and HOA fees.
2. Approximate interest rate for the loan.
3. Down payment required.
4. Interpretation of your personal financial statements, credit scores, and income-to-debt ratios to conclude your eligibility.
Utilities Lead to the Path of Finance
One important thing to consider as you look to buy California land is utilities. When construction developers go into the construction stage to build new homes in Southern California then roads and utilities are built for a large number of homes. When the lender knows that a lot has public road access and utilities nearby they are often more willing to supply financing for the land because there is a foreseeable capacity to build on it which increase the California real estate worth and lowers the risk to the lender. The cost of installing utilities on a lot is not considered part of the hard construction costs for building.
Land Loans from a California Lender’s POV
California land loans are more risky to lenders than residential loans. The reason for this is that normally most people do not live on the land they buy since it’s vacant. As a result it is industry practice to not consider land a primary residence until something is built, and so it follows that vacant land is called investment property even if a person intends to build on it in the near future. Also, vacant land is called commercial property in California, that is property used for an investment purpose, even if the land is zoned residential and there are plans in place to build a primary residence. The importance of this categorization for lenders is that their risk increases on lending for land because a person can walk away from a land loan easier than a loan on a primary residence since the borrower has another place to live hypothetically.
Lenders for land will expect more from a borrow than on a residential home loan. There is a larger down payment expected typically than a California residential house or condo. There is more preparatory work expected also. Lenders may expect the borrower or buyer to bring a variety of items to the lender’s table for a construction loan. Here is a partial list of potential requirements some lender’s stipulate in order to obtain a land loan:
1. Complete and permissible architectural drawings for what will be built on the land.
2. Detailed time tables for all aspects of construction.
3. Finalized realistic budget for the building.
4. Supervisory chart, including a list of builder contact information for contractors and the architect assigned.
5. Proof of bonded and insured builders and contractors.
Here is a list of the paperwork required from a borrower to get started on a land loan in California:
• Last 2 years of your federal income tax statements.
• Last 2 months of pay stubs for both you and your spouse with contact information.
• Your property information if you currently own including tax statements, HOA statements, any current mortgage statements, and any other debt statements you currently have.
• Any additional proof of income streams, including child support, trust fund, investment income, dividends, interest, rental income, social security or government monies.
• A complete list of your bank accounts and documentation, including all your checking, savings, money markets, and banking information.
Conclusion: Some Negatives and Positives
One draw back is that the courts of law in California have less regulations to protect the interests of land buyers than they provide to California residential home buyers since a land purchase is considered an investment. On the positive side, land is like having a clean slate of property. California land buyers have a much easier time when it comes to planning what they want to build, as long as the building plans live up to the regulations and zoning requirements of the city for the land’s location. As a land buyer CA you also have much more flexibility on getting what you want than doing a residential home remodel for example. The best part of all about obtaining a loan to buy land in California is that it forces you to think through the land buying process ahead of time, talk to the right people which you will need to help you build a new home in Southern California and make a financial budget with sensible deadlines so that ultimately you can become a true player in the future development of a community for all to see. Plus you will have a really cool story about your personal experience in the timeless process of building on California land.
How to Get your Best Bad Credit Car Loan Financing Deal
Browsing for a new auto while your old one is just about to go belly up is not anyone’s idea of a blast. It’s not deciding what kind of vehicle you need that’s the trouble. Most people are able to consider seriously and be honest regarding what type of car they can afford to have. They will happily resolve to get a sedan or SUV, even if they aspire to having a foreign sports car that would make James Bond envious.
However, your credit may become a showstopper. If you have less than outstanding credit, automobile dealers can brand you, making you feel like a second class citizen. They cannot or don’t want to take the risk of selling you the car you really can afford and need, so they guide you towards cheaper, less desirable models. The sales agents have learned to evaluate people from a financial perspective, surprisingly accurately, and they will lean towards the easier sale instead of one where significant effort will be involved to get your financing approved, if it can be done at all.
Hardly anyone has perfect credit these days. Although not at all true, the misconception is that one’s credit score is what it is and there is little one can do about it. Nothing could be further from the truth and the savvy consumer knows that, but how does that help you now? Unless your credit is really bad, you having missed a couple payments on your Visa card a couple years ago due to a financial setback is not going to prevent you from getting approved for a car loan. Even if that was consistent for a period of time because you got laid off from your job or had some unexpectedly high medical bills, you’ve managed to get yourself back on track now, and from your perspective, it’s a whole new ball game. The key in finding the right car financing is to find the lenders who will agree that you are in a whole new position than you were a few years ago when you were having financial problems.
This is where using an online auto loan quote can be advantageous to you. You see, the credit reporting agencies have a memory like an elephant, and they will remember those payments you missed a few years ago, right down to the nitty gritty details. That period of your life is behind you and you do not care to relive it, so you may want to look at other car financing and car loan options that are less traditional than your bank or credit union.
You need to be real with yourself before you even go to the dealership and realistically determine how much you can afford to spend in car payments. Do not stretch your budget to the limit where you need to cut some necessities, because then you will start to resent that car over time. Don’t forget to include the difference in the cost of car insurance over what you pay for car insurance now, as well as the difference in gas mileage from your current car. Also remember that cars do not run on wishes or hope, so you need to budget a maintenance fund also for consumable items such as tires, oil chances, wiper blades, etc, none of which are typically covered under any warranty.
Once you have that figure in mind, then you are ready to start shopping. If you cannot bring yourself to purchase a sedan instead of that sports car right now, then perhaps you just need to put more band aids on your current car to keep it running a little longer. You don’t want to feel like you had to “settle” for something that you are going to be making payments on for the next few years.
The most important part of the whole car purchasing experience is finding the right auto loan and financing terms. If you are buying a new car and your credit score allows it, you may be offered really great financing options from the dealer via the manufacturer. Sometimes this can be zero percent interest or under 2% interest, which will not be matched by your bank or even most online lenders. But if you do not qualify for that, all is not lost.
Your local bank or credit union may offer an attractive rate but you need to find the BEST rate, because that little bit of time spent shopping for your financing can mean literally hundreds of dollars in your pocket. Online car loans deals can frequently be much better than traditional lending sources and are well worth your time to get a quote a compare. Online auto loan lenders have much less overhead than their brick and mortar counterparts, and they almost always pass those savings on to you, the consumer. They are very anxious to get your business, and are therefore also much more willing to overlook some minor blemishes on your credit report.
