Half the Picture

Why do some loans or finance applications stall during thewriting phase? Are not underwriters interested in getting projects funded as quickly as possible? Yes and no. When a customer decides that financing their project or piece of equipment is a good alternative to paying cash, some critical things have to happen. First, the client has…

Why do some loans or finance applications stall during thewriting phase? Are not underwriters interested in getting projects funded as quickly as possible? Yes and no. When a customer decides that financing their project or piece of equipment is a good alternative to paying cash, some critical things have to happen.

First, the client has to provide the requested financials in a complete form; not tax returns with missing schedules or partially submitted financial statements. Often financials are incomplete; the initial auditing review is done and the missing parts are identified and requested from the client again. Sometimes all the missing parts are not done during initial review and they have to be requested later but when dealing with a large volume of documents, you can understand how this can happen. In either case, the missing information and going back and forth can slow the process by days or even weeks.

The next part is the verification phase; this can be tedious since all the reported earnings, assets and ownerships have to be double-checked and verified. A company with multiple assets and income streams can take several days to fully verify. The lender needs a clear picture of who owns what and where the money is generated. After all, without proving income and contractual, the numbers on a financial statement are meaningless.

The final step is determining if the ratios including debt to income and overall leverage is within the guidelines of the lender. Is the client debt too high? Will the income stream continue for the term of the finance? Can the cash flow service this new debt? There are formulas for all these key indicators but typically, the final approval involves a committee “approve” or “not approved” decision. Even at this final phase, supporting information may be requested.

Considering the losses in the financial industry during the last few years and particularly in 2009, the auditing review is simply one which most lenders are not willing to rush right through. Patience, once again, is a value.

Bad Credit Commercial Truck Loans – Bad Credit Is Not an Issue to Avail These Loans

Are you interested in making money with a trucking business? But you are not backed by sufficient cash to purchase it. You need not worry now as bad credit commercial truck loans are there for your assistance and provide you finances in a quick way. In the past few years truck loans are made available…

Are you interested in making money with a trucking business? But you are not backed by sufficient cash to purchase it. You need not worry now as bad credit commercial truck loans are there for your assistance and provide you finances in a quick way. In the past few years truck loans are made available for you by many financial institutions.

You can now get these advances in a quick way from many banks, credit union or other lending firms. These institutions provide you funds in a swift way as they are made available online. The method of banking is much easier and is hassle free. Online financing does not include much paper work. To avail these advances you only need to fill an application form which is available on the internet.

These loans come in two packages that are as follows:

  • Secured loans are those advances for which you need to place an assurance. In the case of bad credit commercial truck loans the vehicle itself is an assurance against the fund. Here the borrower is in a risk of losing his vehicle if in case he fails to pay the money in time and in the other case ie
  • Unsecured loans are loans for which you do not need to place any type of assurance. And in such situation the lender is in the possibility of not receiving the payments on time.

The loan amount offered in under these advances range form £ 2000 – £ 50,000. This advance proves to be very helpful and is made available in a short time. These funds are specified for a period of 1 – 5 years. The repayment period is flexible. This period can be extended if you are facing difficult to pay in the amount on the due date. You are charged a penalty for the delay made to repay the amount in time.

What Are the Requirements to Obtain a Merchant Cash Advance

If a business is looking to obtain a currency cash advance, there are certain requirements that companies that offer merchant cash advances require a business to fail. First of all, if a company is looking for cash advances, than it is imperative that company has been in operation for a sustained period of time. If…

If a business is looking to obtain a currency cash advance, there are certain requirements that companies that offer merchant cash advances require a business to fail. First of all, if a company is looking for cash advances, than it is imperative that company has been in operation for a sustained period of time. If a new company tries to apply for this loan, than in most cases the business will not receive the loan. The reason for this is because these types of loans deal strictly with credit card sales, and if a company does not have any history of credit card transactions, than it would be impossible for a cash advance company to know what percentage of credit card sales to take out when repaying the small business loan.

Generally the business should be up and running for a minimum of 3 to 6 months to obtain this form of business financing. In addition to this, another requirement is that a company will require a minimum amount of credit card sales per month. Generally, the sales range anywhere from $ 2,500 to $ 3,000 in credit card sales. This is the basic underwriting criteria of obtaining this loan. If you look at these requirements and see that your business does not fit this under criteria, than it is possible that this kind of loan is not for you. If it does fit, this type of loan might make the most sense for you and your business and looking into it might be a good option.

Applying For A Small Business Acquisition Loan

Whenever applying for a small business acquisition loan make sure you have all the documentation that you'll need to present why and how this is a good reason to receive that loan. In a volatile consumer banking market obtaining a small business acquisition loan will not be as simple as it was just a couple…

Whenever applying for a small business acquisition loan make sure you have all the documentation that you'll need to present why and how this is a good reason to receive that loan. In a volatile consumer banking market obtaining a small business acquisition loan will not be as simple as it was just a couple of years ago. Banking institutions are scrutinizing every application for loans, especially when you are looking at smaller businesses.

Applying for a small enterprise acquisition loan takes time and effort. You should be able to prove the way the loan is going to be invested so when the acquisition will actually take place. You'll need a present business strategy plan, projector screen and marketability reports in addition to profit and loss statements for your current business and also the one you wish to buy. You could apply for a small enterprise purchase loan through a number of different companies.

Banking institutions, private bank loan companies and the Small Business Administration are only a few accepting applications. Many times the state or local government will have economic motivation applications that will permit you to apply for a small company acquisition loan. Some personal remunerative development companies have the ability to problem loans, trying to get a small company acquisition loan through one of these simple companies is always recommended. You'll find a number of different choices and places to try to get a small business purchase loan by doing a little research on the web or at a business development center. Applying for a small enterprise acquisition loan can also be made easier if you recruit the help of the local chamber of commerce.

Most chambers have people who focus on assisting small businesses over monetary problems and promote development. This benefits the chamber as well as the city they assist, so often these services are totally free. Keep in mind to become as set as possible when applying for a small business purchase credit. A well prepared client is difficult to fall.

Secured Business Acquisition Loans

Secured business acquisition financial loans are one of the different ways, a group of investors or a company can finance planning an additional business unit. Although a guaranteed business acquisition loan does require an entity to put up security, it is usually one of the least expensive ways to finance a company acquisition. Advantages of…

Secured business acquisition financial loans are one of the different ways, a group of investors or a company can finance planning an additional business unit. Although a guaranteed business acquisition loan does require an entity to put up security, it is usually one of the least expensive ways to finance a company acquisition. Advantages of secured business acquisition loans There are a couple of key advantages to some secured business acquisition loan. First, interest charged on this kind of financing is usually less than interest charged on non-secured funding plans.

This is because the financial institution knows that the business purchase may go sour. They will still be in a position to collect about the property they've got as security. Second, a good entity is usually able to negotiate an advantageous phrases under a guaranteed company acquisition bank loan. Fixed costs along with a stable rate of interest tend to be more common with this type of funding agreement. 3rd, it is simpler to get a guaranteed bank loan than it is to obtain an unprotected bank loan.

A business which has blemishes in their credit record might be able to obtain a secured loan, whereas unsecured options are unavailable. Fresh companies with minimum background could also think it is much easier to acquire a guaranteed business acquisition loan. Disadvantages regarding guaranteed business acquisition loans. The largest drop of the attached company acquisition loan is that if the business venture goes sour, the entity will lose the apparatus or home they pledged as security.

Upfront costs of receiving a secured loan will also be higher than the actual upfront costs of an unprotected mortgage. This is because the actual lending institution will need a good appraisal from the property that is pledged as security. Another disadvantage of a secured business acquisition loan is that the lending institution is only going to lend a specific percentage of the asset worth.

This particular percentage is generally 50-80% of the value indicated on the self-sufficient appraisal from the asset. In case a business property pledged as security in which appreciates in worth and also the organization wants to sell it, they're going to have to pay off the borrowed funds in full or even the bank can block the actual asset sale. Whenever a business looks to make an acquisition, a guaranteed business guarantee business acquisition loans are among the many ways, a group of traders or a company can finance the purchase of another company unit. Although a guaranteed business purchase credit does need an entity to place up security, it is usually one of the least expensive means to finance a company acquisition.

Small Business Acquisition

Are you fed up with working for others, and looking forward to becoming your own employer? Alternately, maybe you believe you can operate someone's company much better than all of them. Well, a small business acquisition might be in your future. Why might anyone want to consider a small enterprise acquisition? Effectively, there are several…

Are you fed up with working for others, and looking forward to becoming your own employer? Alternately, maybe you believe you can operate someone's company much better than all of them. Well, a small business acquisition might be in your future. Why might anyone want to consider a small enterprise acquisition?

Effectively, there are several pros to a small company acquisition. Very first, the company already is available. The initial money and time have been spent in choosing the correct location, and establishing the space for that small business. This is often best for both parties, as the smallest enterprise purchase

Many destined small enterprise looking forward to participating in the skill of a small enterprise acquisition may be inside it for the concept of entrepreneurship. Maybe the prospective small business acquisition owner believes they can bring that idealism to the business that was not originally there, and turn the company close to in a very lucrative way. The thought of the little business acquisition can as well as be very tempting to an investor or entrepreneur who can begin to see the business with a new perspective, and bring their ideas to the table. The risk of the small business acquisition has to be low, and also the profits have to be capable of being associated with this to seem just like a lucrative idea.

Once again, the primary motivator is not usually profiting on the little enterprise acquisition, but something more. There is an opportunity with regard to anyone to fulfill their needs to be a small company owner, or just dominate the reins, and prove they can be much more profitable than the unique existing business. Regardless, a small enterprise acquisition could have been a good thing for the vendor and also the prospective owner looking to be their own employer. Many times, retailers may remain on after the small business acquisition to assist and foster the brand new identity of the business for your new owner.

The small business acquisition can be a win-win situation for those involved!

Business Acquisition Financing

There are many reasons precisely why a business may wish to obtain another organization or combine by using it. To be able to acquire another organization, company acquisition financing is usually required. The organization may want to expand through obtaining an additional corporation's company as well as providers. This will increase the client base. It…

There are many reasons precisely why a business may wish to obtain another organization or combine by using it. To be able to acquire another organization, company acquisition financing is usually required. The organization may want to expand through obtaining an additional corporation's company as well as providers. This will increase the client base.

It requires cash that you might not have, consequently. Company acquisition fund is essential. The combination additionally claims money in the type of business acquisition fund. The combination will broaden the client foundation, and in addition you will get a mixed administration which will give additional ideas and sometimes break the larger management pool directly into sectors, which are more easily managed.

Company acquisition financing may come from the usual sources like banks or even expired banks. The giving associated with stock both typical as well as preferred, through the companies is yet another kind of company acquisition fund.

Company purchase financing could be as business bonds, which usually lots of people like simply because they spend a higher rate of interest compared to, eG Government bonds. Utilized financing is often the result of company acquisition funding. Consequently, the company is transporting much more debts than it normally hold. In this instance, it is crucial to have additional financial debt, for your combination or even acquisition of another company. Ideally, profits will start to move within due to this acquisition and also the debt will start to decrease.

Many times a company can get business acquisition funding not to offer much more services and products to customers. However, the same quantity or less. A business will certainly use their business acquisition funding to buy a business, keep the cost effective divisions and employ its money and then sell off or even close the actual fewer profitable sections. This inevitably leads to people being laid off. Business acquisition financing can be good for the company. It depends on your point of view.

6 Steps to Creating The Perfect Business Loan Package

Bank lending has really been tight over the last few years. Most business owners now think that the only word their banker can say is “no.” The reason: This last financial crisis has changed the lending game. Banks and other lenders will not just provide you a business loan because you have a great smile…

Bank lending has really been tight over the last few years. Most business owners now think that the only word their banker can say is “no.”

The reason: This last financial crisis has changed the lending game. Banks and other lenders will not just provide you a business loan because you have a great smile or a novel idea. You have to get in there, roll up your sleeves and really entice them to lend to your business – make them approve you!

Know that when lenders do begin to approve more loans again, the flow of new business loan applications will really flood in. So, to ensure that your loan application gets funded, you have to find ways to get your business noticed – making it not only stand out but stand above all the rest.

Here are a few tips to get your business loan application moved to the top of the pile:

Pick the right bank or lender: Not all lenders will emerge from this financial mess in the same position they went into it. Some will have changed their entitlement lending philosophy. Some will no longer loan to small or mid-sized businesses – focusing only top tier / low risk companies. Some will only provide loans based on companies in certain industries or that have specific collateral. And, some may be out of the business lending arena altogether. So, start with your current bank or past lender and see if or what they have changed in regards to their business loan policies.

Further, all banks and lenders have changed their loan approval criteria. This was not done to hinder businesses from seeking loans but more from the threat of new governmental regulations. So, if your business was able to get a business loan or working capital line of credit prior to the financial meltdown – that does not mean that it will qualify for one today or even tomorrow with the same bank or lender.

Collateral and Guarantees: Banks are now more focused on repayment and not just one form of repayment but several. Banks and other lenders always look to current positive cash flow as the first source of repayment. But, that is no longer enough. What happens if you have a slow month or if the economy tanks again? Lenders will start looking for additional (complementary) forms of repayment from sources like personal guarantees or large amounts of and / or highly valued collateral.

Collateral will be key in this new lending market. If you are serious about your business's future prospects, then you should have no problem putting up collateral against a business loan request. Not only does collateral provide your lender with an additional source of repayment but could really show your banker or loan officer that your business is serious – essentially helping you close the deal.

Keep in mind that different collateral has different value. Banks and other lenders do not look at how much you paid for a piece of equipment or a piece of property. They look at its value as how fast they can sell it at fire sale prices to recoup their losses.

The best collateral – where your business would get the best value against a loan – is collateral that has high liquidity – like accounts receivable, investments, purchase orders or even personal liquid assets of the business owner or of the management team.

Make sure your business loan application clearly states what collateral and / or guarantees you or your business is willing to provide as well as its current, conservative market value. Providing this information up front will demonstrate to your lender that you are here not to fight with them over this hotly contest issue but are willing to play within their rules. Plus, banks like easy deals and deals with tons of collateral are usually the easiest to get approved.

Remember, if you do not show and will not demonstrate that you are serious about your business and that you have not taken the time to understand your lender's collateral or guarantee policy, then your banker or lenders will treat you the same way and move your application to a bottom drawer or the round file in the corner.

A Clear Story: Make sure that your loan application tells your story. Not just what your company does but also why it does what it does, who (your customer segment) targets and satisfies, how its current management can build value in the future (based on what it has done in the past) and what the funds will be used for – specifically. Putting in your business loan application that you will use those funds for general business purposes just will not fly any more. Banks and other lenders want to be repaid and must be satisfied that you and your business will deploy this new asserts (the loan funds) in such a way to generate enough new revenue to pay back the loan and interest as well as grow your company.

Financial Statement and Tax Returns: Banker and lenders will not just take your word for your financial condition or be satisfied with a quick printout from your accounting program. Stated income loans are a thing of the past. Lenders will be looking for both audited financial statements and / or completed and filed tax returns – at least 3 to 5 years worth. These financial statements not only provide additional information to help your lender make their decisions but can really validate your business's potential; both of which will further your ability to receive thatought after approval.

Further, many lenders today will contact both your customers and suppliers to back up some of the information provided in your financial statements. While this may seem like a huge hassle – it is just the way the game is played now. If you go into this process knowing what financial documentation is required and planning for it (also taking to your customers and suppliers before hand) then the burden will be less on both you and your loan officer.

Forecasts: Combined with financial statements and tax returns, your loan application should include well-formatted financial forecasts. Not only will this show the strength of your management ability to direct the company moving forward but forecasts (if done properly with a best-case, worse-case and most likely-case scenarios) can help your lender determine if your business will still be able to repay their loan under different market conditions. Additionally, these forecasts should show most likely scenarios both with and without the loan proceeded.

As always, tie your forecast to your expected loan term and make sure that all numbers trend with past results – if not, make sure you have a detail explanation of why.

Network: Lastly, do your homework on who your bank or lender has worked with in the past. Most banks or financial companies have their core customers – those businesses that can just pick up the phone and get whatever they want. If your business can receive references or introduction from them – that is likely to put you over the top and get potential lenders knocking on your door.

If that is not possible, look to those who you have deal with in the past (like other lenders or suppliers) or to those who provide your business revenue (like customers) for references. These groups will show your lender that they will continue to support your business in the future – making you a better candidate for a business loan.

The bottom line here is that if your business really needs outside capital to grow then make sure that you put the same intensity into your business loan application as you do into your business. Walking into your bank and asking for a business loan is much different than walking into your butcher and asking for the cut of the day.

Not getting what you want from your butcher may disappoint you but not getting what you need from your banker or lender could destroy you.

As we emerge into this new economy, you as a business owner, must understand that business lending has changed and if your business needs outside capital to prosper and grow then you must make sure that you have a well prepared business loan application before you even consider walking into your lender's office.

How To Find Commercial Truck Financing

Heavy trucking equipment can be extraordinarily expensive. Trucking companies of all sizes often rely on commercial truck financing to lease or buy semis, dump trucks, and other equipment that they need to provide their services. However, finding financing for a commercial truck can be difficult in some cases. Understanding how commercial truck loans work is…

Heavy trucking equipment can be extraordinarily expensive. Trucking companies of all sizes often rely on commercial truck financing to lease or buy semis, dump trucks, and other equipment that they need to provide their services. However, finding financing for a commercial truck can be difficult in some cases.

Understanding how commercial truck loans work is critical when trying to lease or find a loan, as this allows businesses to improve their chances of getting approved for affordable financing options.

This starts with understanding the credit issues that commercial trucking companies look at when issuing loans. There are numerous criteria involved which a financing company members to try to accurately determine whether a business will pay off its loan in a timely manner.

These criteria include specific information about a loan applicable company, such as the amount of time that a company has been in business. Most financing companies will prefer to issue commercial truck financing to an established business, as this greatly improves the chances that a loan will be paid back. A good credit history and strong financial records will also improve a company's chances of receiving financing at a favorable rate, so before obtaining financing on any type of trucking equipment, a company should prepare its financial records and be ready to present a great deal of tax and income info. A history of profitability can show a financing company that a business has a reliably low credit risk.

The other major factors are the exact equipment being advanced and the type of loan that is being requested. Longer loans are more difficult to find, as they can carry a greater risk for financing companies.

It will be very difficult to receive commercial truck financing from an institution that is not familiar with the uses, benefits, and costs of the equipment that is being financed. Businesses should choose financing companies that specialize in loans for heavy-duty commercial trucks and related equipment, as these institutions will be able to accurately assess the risks of a loan and can often offer low rates to buyers. Many financing companies have lists of commercial trucks that they will finance or lists of equipment and brand types that they do not support.

When truck financing is needed, it's often possible to improve the chances of loan approval by choosing used trucks or inexpensive models. Supply as much credit information as possible and look for loans that can be paid off as quickly as is affordable. First-time truck buyers and buyers with bad credit can look for special companies that specialize in commercial truck financing for these situations. Know the terms and interest of your financing agreement and work with specialized financing companies that understand the costs and risks of the trucks that you need. An organized approach will help any business to finance heavy trucks at an affordable rate.

How Much Capital to Start a Business? The 411 on Securing a Loan for a Start-Up Business

How much capital is needed to secure a loan? Regardless of the level of business, be it a start-up or an already existing one, there usually comes a time when a loan is inevitable. From my long experience, most banks and financial institutions will I have approached did not just lend me money, they needed…

How much capital is needed to secure a loan? Regardless of the level of business, be it a start-up or an already existing one, there usually comes a time when a loan is inevitable. From my long experience, most banks and financial institutions will I have approached did not just lend me money, they needed to know that their money was safe and most importantly I would repay in time. How does one go about this? Well, the answer to these questions lie in knowing just how much capital to start a business is needed. Only after this, can I know the deficit to be topped up by a loan.

A business plan is the circulatory system of any business. I found out the importance of a business plan after knocking on too many bank managers' doors, too many times without bearing any fruit. Lending institutions insist on stuff like the start up capital estimates, financial projections, and the long-term fiscal plans. They are insisted on knowing my level of education, knowledge, and business experience. This helps them to know best whether I was a financial risk. I found research to be of very high importance as only after research Did I become knowledgeable and ended up getting the loan. I also found out that credit history could make or break ones chances of securing a loan. Poor credit rating may prompt some financial institutions to turn down a loan request.

To secure a business loan it is very important to do a thorough background check on the area of ​​business. Maintaining a good credit rating by repaying credit card bills on time and any other loans advances the chances of securing the much-needed injection to the business.