Leases generally tend to fund much quicker and require less money down. A lease may take 2-4 weeks from application to closing with as little as 10% to no money down. Leases can be used for used or new equipment.

Loans generally tend to fund slower and require more money down. Loans typically take 30-60 days when things go well. Often a commercial loan can take as much as 3 months to fund. Lenders also issue loans based on liquidation values for equipment. You will expect to get a loan for 50%-75% of the liquidation value of equipment.

Choosing the right program to finance your FF&E is important. There are not hard and fast rules to choosing one over the other. It depends on the timing and cash down you want for financing. There are also tax advantages and disadvantages to each program. Discussing these programs and reviewing them with a professional is the best way to ensure a positive outcome.

• Direct Industry Experience: A lender will want you to have 3-5 years of experience in the business industry you are purchasing.
• Liquid Assets: You will need to be prepared to put 15-30% cash down toward the purchase of the business. In addition, lenders will want you to have 3-6 months of working capital reserves after you close the loan and make your down payment.
• Business Performance: Turn around businesses are very difficult to get a loan for. Lenders do not like to lend to a turn around strategy no matter how proven it may be. To get a turn around loan to fund you will have to have extremely strong mitigating factors. Good stable trends are what lenders will be looking for.
• Business Valuation: Depending on the size of the loan request, lenders will require a independent business valuation to be ordered. This valuation will determine the purchase price for the business that the lender will use. There are many factors that can impact the value of a business. The independent report will help mediate the risk for the buyer and lender.

There are many things to consider when starting or purchasing a business. It is important that you understand the rules of the business financing game, how to play, and what will make you successful in obtaining the loan you desire.

100% financing is almost a thing of the past. For those individuals needing higher leverage loans on equipment, equipment leasing is a good option. In many cases equipment leasing companies will offer 100% financing for new and used equipment. This is one of the only sources I’m aware of that offers a 100% financing solution for businesses.

Keep in mind that leasing companies do not fund many start up requests. The “skin” the leasing companies look for is a viable business established for more than 12 months. When you consider this, you could challenge whether a lease is truly a 100% financing source.

We often advise businesses on what their down payments will be. Your down payment doesn’t always need to be cash. In some cases land or other business assets can be pledged in place of a cash down payment. If you don’t have the ability to meet the down payment requirements, we advise you find a business partner that can fill in the down payment gap. This will save you more money than pursuing cash for the entire project and allow you to keep more interest in your company.

There are too many ways we can assist you in consulting around your loan request. Commercial lending experts still refer to commercial lending as an art. Lets review your case today and put you on the path to success.

It is important to know what are competitive terms for your specific property type. Unrealistic expectations will frustrate you and the lender. You can’t expect to get some rates or LTV’s that are not associated with your property type.

Working with a broker can save you a tremendous amount of time in identifying competitive terms and sources in the market today. Just as you hire an expert to put together your taxes, a broker is much more efficient and know what is available in commercial lending. Good commercial loan brokers are normally well worth their fees.

Traditionally lenders will refinance any mortgage that may be present on your business property and release some cash from the property to you for the improvements. This strategy will work if you have equity in your building. If you don’t you will need to pursue other options.

Some business are able to access cash from more efficient business operations. Cash flow is king in any business. If you have excess cash flow or the ability to create excess cash flow through trade terms, you may be able to unlock some money for renovations here.

No matter what industry your business is in, or collateral you have to offer, lets discuss your options and determine a customized loan for you. Fill out a contact form or call us today.

Don’t put your lender or broker in this position. Make sure you present you borrowing need in a clean and clear manner. The fewer questions a lender has after visiting with you the better. This will help your broker/loan officer get the story right when they visit directly with underwriters. A clear and complete story will give your banker confidence.

One way to combat this gray area is to be completely transparent with the professionals you engage to help you acquire a loan. If you are working with other sources make the lenders aware that you are working with a couple lenders. Sometimes a lender will choose not to work on your request if they know you are working with another lender.

There is a significant amount of work in putting together a commercial loan. Everyone is heavily engaged in the loan file prior to closing. Lenders spend on average 40-60 hrs in each deal they preliminarily review. Some require more time and others less. In any case, just remember to be professional as you search for a commercial loan. This is a highly engaged process for all involved.

A comprehensive package that is detailed and thorough will eliminate many questions a lender will initially have. The more you are prepared the clearer you will be able to communicate your loan need to the lender. The clearer the picture, the better these lenders are able to review your loan request and process a good response. Give yourself time to prepare a complete and comprehensive package for the lender. It will save you a lot of questions from the lender, and ensure you get the best loan review.

Business owners should consider how long it takes for their AR to turn into cash before choosing one of these options. Most AR loans are revolving in nature and are expected to be paid back in full within 12 months. Some of these sources get paid in full on a 30-90 day basis. The reason it is important for business owners to understand how long it takes for their AR to become cash is because, cash is what will pay off the original AR loan.

I have seen several cases where business owners have received an AR loan that their business was unable to repay. In many cases the business owner is worse off a year later than they would have been without the loan. Don’t let this happen to you. Many lenders are so production focused that they do not consider the financial implications on your business. There is an art to making and receiving loans. Make sure you take your time finding the right AR loan for your business. Let us help you today.

Our factoring rates range depending on the underwriting constraints of the applicant, business and receivables strength; however, most of the deals we fund range from 1.75%-3%. These rates are pretty competitive with the market as a whole. In any case, lets go over your options. We can help you identify the right solutions to help grow your business the right way. We make our loans for the relationship, not just for the transaction.