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A Bumpy Ride For Business Financing

Based on how chaotic the commercial banking climate is currently, the situation described in this article is expected to prevail for a long (but unpredictable) period of time. In spite of the confusing and frustrating commercial loans environment, a prudent business financing strategy is likely to produce the most effective results that can be hoped for by small business owners. With working capital financing and business loans, commercial borrowers need to be prepared for a long and bumpy ride.

Misinformation and insufficient information will play a somewhat unpredictable role in achieving the desired outcome of business borrowers finding appropriate commercial finance solutions. The eventual success of commercial financing efforts will depend on an individualized and detailed assessment of the unique financial circumstances for a specific business, although it is appropriate to note that there are new and effective business loan options that will satisfactorily fill the commercial funding gap for many small business owners impacted by their current ineffective commercial bankers.

Anticipating the long and bumpy ride that lies ahead for even the most ordinary business financing request will be prudent and wise for small businesses. It has not been unusual for commercial borrowers to wait for one to two months before their bank finally declines to make a commercial loan that had appeared to be a mere formality when the lending process began, either because banks do not want to publicly admit that they are not presently making business loans or perhaps due to their somewhat secretive and changing guidelines for making such loans. Regardless of their prior description of “normal” for working capital management and commercial financing options, many business owners have already discovered how much and how quickly this has changed.

A prevailing banking climate that is characterized by misinformation as well as insufficient information about current commercial finance options for small businesses provides sufficient rationale for describing the journey to business financing success as being both long and bumpy. After they have finally been informed by their current bank that needed business finance help is not forthcoming, because they simply do not have enough information to successfully complete their task, a small business owner might be unsuccessful in their attempt to find a new source of commercial funding in one typical scenario involving insufficient information. When a commercial banker misleads a prospective business borrower by advising the business owner that the bank will be able to help in providing an unsecured working capital loan when the banker has already been told by senior bank officials that such financing will not be provided except for specific established business clients, this is an increasingly frequent misinformation scenario. Most banks are in fact eliminating or reducing working capital financing to small businesses as indicated by one public report after another.

More successful results should be produced by realistic expectations of what lies ahead in business financing efforts. This article represents a sincere attempt to accurately portray the recent confusing and unpredictable state of commercial banking for small business owners, and this fulfills a primary purpose in describing current attempts to obtain small business loans as potentially being a long and bumpy ride.

Business Finance – All That You Need to Know

If you are harboring a desire to start your own business, even if it’s small in size, you need to look at the odds you are facing in the process, the negligence of which can prove fatal for your operation. First of all, unless you have enough capital to finance your project all by yourself, you cannot do without some external investment. Every little business project materializes through a business loan, which is the very first step of the process. In fact, business finance is not merely restricted to the purpose of fueling your yet realized business dreams, but can be instrumental in other areas like expansion and collaboration. What is important here is where and how you avail business loans.

If you are on your way to establish a small sized business enterprise, then you should apply for small business finance, which isn’t really as hard to avail as it is to organize the funds after you have it in hand. There are a thousand things that you need to take care of and you have to use your resources carefully. You have to buy office equipment, structure out the payment for your hired employees, purchase raw material, and so on. So, it’s impertinent that you graph out your strategy well in advance before you even have the loan in place.

Besides people who are looking for a small business loan, there are those as well who already have a small business setup and need finances for their operations. For those who need finance for their day-to-day business expenditure, there is working capital loan, which is offered by a huge number of banks and financial institutions at attractive interest rates. Now there are those who have a well laid out plan for a particular period, say about five years and have a fixed figure in mind for the operations cost. These people can opt for corporate loan, which again is easily available at great interest rates.

Usually, the offer of a loan comes with a condition, which is the pledging of property or other valuables as guarantee or security. For those who can provide that, loans are easily available at pretty low interest rates. But, for those who cannot provide any collateral, there is the availability of unsecured business loans to the rescue, although at a slightly higher rate of interest. Now even if the rate of interest is a bit higher, at least it serves the purpose and you can have your own business right from scratch.

The journey of business finance [] is not yet over, not unless there is one more domain to cover, which sheds light on people who have had a spat of bad luck with their credit history. Now if you are someone who has gone through some harrowing experiences like late payments, defaults, arrears or even bankruptcy for that matter in your credit history, fret not because you can always avail bad credit business loan to realize your business dreams yet. The internet is the best place to find firms offering financial consulting and loans through leading banks and financial institutions at competitive interest rates.

Self Storage Loans and the Small Business Administration

Self storage loans are now being offered through the Small Business Administration and its affiliated lenders. Funding for these small business loan opportunities also increases the ability to refinance in the present-or as time progresses. Prospective borrowers looking to assume the responsibilities of building from scratch, upgrading, and/or remodeling can now take advantage of what the SBA has to offer.

Recent developments in a steadily growing market have provided incentives for lenders and loan-seekers alike to capitalize on lower commercial loan rates, as well as many other amenities entailed in these premium packages. Self storage loans, when implemented through these channels, may very well become the investment opportunity of a lifetime.

Small business financing of this nature can easily turn into greener pastures. A number of contributing factors have led to the storage industry’s uprising; the most obvious reason is that many Americans have adopted somewhat of a pack-rat mentality and they need extra space to store their wares. The most recent subprime snafu has also led to an increase in downsizing and diminishing additional space, which in turn can benefit those who are seeking self storage loans.

While all of this may sound like a walk in the park, the borrowing process does require applicants to possess certain qualifications for each respective loan. Even though more and more lenders are referring to this enterprise as a preferred property milieu, preparing a solid loan request portfolio can make a big difference in getting approved.

Having clout and credit is a big plus; commercial loan rates will likely hinge upon overall credit scores. Most lenders will combine that number with each prospective borrower’s business track record, recent personal bank statements and tax returns to determine whether or not any of these SBA affiliated self storage loans are within reach.

The SBA urges future borrowers to have all of their ducks in a row to attain expedient approval. Using a business loan calculator will also help to put things into perspective regarding commercial interest rates, monthly payments and additional fees, if any.

Current business owners looking to build an additional storage facility will need to provide the same credentials, including a property overview, proposed location, expected occupancy, documented managerial experience in the related field, and a few other details that can be explained in full by a reputable mortgage broker who specializes in self storage loans.

Once approved, the benefits of small business financing for first-timers can be invested in a few different areas, including a strategically placed advertising campaign. Marketing the business effectively will likely lead to max occupancy, while simultaneously building a solid foundation in a relatively short period of time.

Becoming an established business owner can lead to a variety of other investment opportunities where the commercial loan rates are even more favorable. Truth be told, this particular undertaking is a win/win scenario; the ability to generate revenue via self storage loans provides in part the type of national economic strength needed at the present time, especially in a globalized market setting.

Supply side economics is virtually keeping pace with the demand when it comes to independently owned storage facilities; in fact, the larger chains occupy less than 20 percent of the market share. In this case, a business loan calculator can be temporarily replaced by a standard model.

The SBA and its affiliates are working feverishly to provide small business financing for those who’d prefer to stay in the black for years to come. Self storage loans are now available in most every state.