3 Types of Commercial Real Estate Loans

A commercial real estate loan can help you get your business started or kickstart some growth. Here are three types of commercial real estate loans.

1. SBA 7(a)

A Small Business Administration (SBA) 7(a) loan is a good option if you have trouble getting approved for a traditional commercial real estate loan. These loans are provided by SBA approved private lenders and you must have been rejected for a standard bank loan to qualify. The down payment typically won’t exceed 15%, while the interest rate could reach 8.5%. However, the repayment term is fairly flexible and the loan can cover as much as 90% of the property’s market value.

2. CDC/SBA 504

This type of loan is also federally backed. One of the qualifications for approval is to meet the local community development corporation’s (CDC) job creation goals because the CDC provides 40% of the loan. These loans have fixed interest rates that typically don’t exceed 5.07% and the standard down payment is 10%. However, since the goal of the lenders is community and job growth, the loan and down payment amounts are relatively flexible. Additionally, the loan itself is suitable for a broad range of business prospects and there is no cap on how much you can borrow.

3. Traditional Commercial Mortgage

Traditional loans, by contrast, are private loans not managed by the federal government. For example, if you’re looking for commercial real estate loans Birmingham, your first stop will probably be a bank or private loan company. … READ MORE ...

When Is the Best Time to Get A Car Loan Agreement If Coronavirus Has Affected Our Family Economy?

It’s no doubt that COVID-19 has dealt a great blow on the economy of several nations. This has consequently crippled the personal income of many families, with unemployment rates reaching a record high since the outbreak started. Most world governments are doing all they can to ameliorate the living condition of their citizenry with palliative mostly provided so they can successfully enforce the stay at home order. In as much, as the government continues to provide financial support for their populace, there is little government can do in this precarious time to mitigate the impending hardship that would be faced by the majority of the unemployed populace. Without a doubt, COVID-19 is peradventure the worst thing to have befallen any economy, with unemployment hitting off the charts the trend will definitely not slow down till it’s done its damage.

Is a car loan the right at this time?

Whether or not taking a car loan is feasible or right is solely relative to the credit status of the family, if one has been on bad credit already, then a car alone isn’t going to be feasible. Having a good credit stance doesn’t necessarily mean one can go all out to get a car loan, getting a car loan comes with many financial responsibilities as one needs to properly service the car loan and still provide for the needs of the family which include shelter, food and clothing as basic needs. It would take careful judgement on the part of the … READ MORE ...

How To Ensure Your Business Transitions to a Safe Delivery Model

Where delivery was once limited to select casual restaurants and small-town pharmacies, more and more businesses are embracing this service as a way to preserve business during the COVID pandemic. If you have considered adding a delivery model to your existing business, there are certain things you should do to ensure the transition goes smoothly and safely. 

Conduct All Necessary Screenings

Anyone who will be driving company or private vehicles on behalf of your business should undergo a pre-employment driving record check. Look for prior accidents and moving violations that could increase your liability and possibly impact your insurance rates. This applies to current employees who are transitioning to driving roles, too. Just because someone has been a stellar employee in one role doesn’t guarantee that they will also be a great delivery driver. 

Secure Appropriate Insurance Coverage

Depending on how you are planning to conduct deliveries, there are several options for securing appropriate insurance coverage. Before you send out the first driver, conduct a review of your current policies. Talk to an agent who can help you decide what coverage you need to limit liability and reduce additional risks to your business’ financial security. A few options you might consider include:

Provide Clear Signage for Delivery Vehicles

There are several reasons you want delivery vehicles to be clearly marked. First, it helps … READ MORE ...

Asset Finance Companies Predict Boost in Organization Lending

New research in the Finance & Leasing Association has revealed that asset finance companies are cautiously optimistic about business lending over the next 12 months despite the troubles many firms have experienced in recent months.

Its most recent quarterly Asset Finance Confidence Survey, which questioned senior executives with the FLA’s Asset Finance Division earlier this month, found that 74% are expecting a rise in small business lending within the next three months. This is 6% higher than the corresponding study was undertaken three months ago.

An even higher proportion expect a rise in lending over the next 12 months (77%) within the hope UK businesses discover it easier to access the funding they need to have to grow and therefore boost the economic recovery.

The figures follow other recent news in the FLA that its members advanced 2.9 billion of new finance to SMEs within the final quarter of 2011 for investment in equipment and machinery. This, coupled with the latest figures in the Asset Based Finance Association revealing 16 billion was released to its members’ clients in Q3 2011, demonstrates just how effective asset-based finance has been at plugging the funding gap that Project Merlin has failed to fill, according to Bank of England statistics.

As a result, 72% of those surveyed expect a slight improvement in domestic economic conditions over the next 12 months, which is up 2% on the previous survey, which was conducted.

Geraldine Kilkelly, Head of Study and Chief Economist at the Finance & Leasing … READ MORE ...

Uses For Business Finance Loans

When applying for business finance loans, the money you receive can be made use of on a variety of choices. One particular item may be the property for which the business will likely be positioned. In the event the construction you are going to be leasing demands improvement, you can make use of the funds for that. The funds can also be employed for any renovation or building that must be performed. The business will want supplies that you can use the loan towards. As an illustration, the buy of furniture, electronics, machinery you may need, and fixtures.

Finding Approval for Business Finance

Before applying for business finance, you may like to verify your business credit score. Ask the lending institution what is the minimum business credit score is necessary to be approved. You’ll want to know these details, so you don’t apply in the lending institution that your score doesn’t meet the specifications.

If 3 lenders do the check of your score and you aren’t approved, then the chances another lender will approve it are slim. Diverse lenders could demand diverse criteria to met, before you apply, ask for this information and facts. You may also search on the web at diverse lenders to view what they call for.

Distinctive Sorts of Business Loans Out there

There is certainly a lot more than one particular business loan that you may apply for. You can want to research each of them to create positive you try the single that finest … READ MORE ...