Types Of Business & Commercial Loans
Every business has five major components necessary to operate. These are personnel, equipment, housing, products and services, and last but most vital, is capital. It takes capital to get the other four. Business owners often fear banks and commercial finance companies. This fear has its foundation in a lack of lender knowledge. A Business Finance Consultant knows the ways of these lenders and has the contacts to secure financing for virtually any type of business.
Because your Creative Capital Team Consultant works with many leasing companies nationwide they can help you determine if leasing your equipment is right for your business. If you should decide to lease, they can usually get the equipment you need with just a simple, one page credit application. In many cases they can have the new equipment on site in as little as a few days.
The deregulation of the banking industry has made new choices available that never existed before. One of these is the availability of money through non-traditional lending sources. The types of business loans vary to your specific business needs.
On the left are just a few of the loans that can be arranged by a Creative Capital Team Consultant. A Creative Capital Team Consultant can give your business access to all of these types of financing and more. With one phone call you, can have dozens of lending sources competing for your loan.
Line Of Credit
A line of credit for a business is one of the first things a business should obtain when starting a business. Lines of credit are simple. It’s similar to a credit card, and you typically access the credit line by writing a check. The interest rate is usually much lower than a credit card. A credit line is an amount of credit that you can access as you need it in any way you need it to grow your business. For example, let’s say you obtain a $50,000 line of credit. If you need say $12,000 you access it and you still have $38,000 you can access at a later time. When you pay it down to say $8,000 then you have $42,000 more you can access. To maximize your credit lines it may take the help of a Business Loan Consultant. Credit lines can really come in handy to fill in the gaps for a business. Need to make payroll and a little short? Need to pay a vendor? What about those slow times of year? Whatever the gap might be, the credit line can be a great back up.
Commercial Property Loans
A commercial property loan is a mortgage loan on commercial real estate. As a business owner, why not purchase your property instead of lease it? Owning the building could be the business owner’s best exit plan or retirement plan. A Creative Capital Team Consultant knows the ways of these lenders and has the contacts to secure financing for virtually any type of business needs.
Most business owners put all of their money back into their business. Over the years we have recommended our clients purchase their building. One client that did go ahead and purchase his building sold the business just a few years later but kept the building. He then rented the building to the new owner. This strategy provided this client a great retirement.
We had another client that we suggested that he buy his buildings, and he chose not to purchase his building. The recent economic downturn decimated his business. He is spending his retirement years working full-time.
Small Business Administration (SBA) Loans
A business that may not be able to get a traditional loan may be able to obtain funding through a SBA loan and at reasonable terms. The Small Business Administration guarantees major portions of the loans through the SBA loan program. A Business Finance Consultant knows the ways of these lenders and has the contacts to secure financing for virtually any type of business needs.
The SBA loans are obtained through lending partners. These lending partners are typically banks that provide financing to the small businesses under this program. Again, the government guarantees a major portion of the loan made to the small business.
Working Capital can be the lifeblood of a company’s growth. It’s simple. Take your current assets minus your current liabilities, and the difference should equal your working capital. Companies that have a negative working capital may have a hard time growing. However, companies with a positive working capital generally are able to grow and expand. You may say, my working capital number is positive, but how do I turn that into cash to grow my business? A Business Loan Consultant can annualize your bottom line to find ways to take advantage of your positive working capital.