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Multi-family Real Estate Loans

July 27, 2014 By Jonathan

Banks, credit unions, non-bank lenders, and governments offer small business loans. Borrowers can choose from different financial solutions such as commercial and business term loans, cash flow finance, business loans and lines of credit, and others.

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Business owners are also offered credit cards, lines of credit, equipment financing, equipment sale-lease backs, and other financing solutions. New business owners can choose from bank and buyer financing. Business acquisition loans help companies to purchase existing businesses.

Types of Financing

Applicants for business funding can choose from disaster and real estate loans, micro-loans, and others. In addition to loans under government programs, credit unions and big and small banks offer different financial solutions. Secured and unsecured loans differ when it comes to interest rates, repayment periods, and collateral. Financial institutions accept different assets as collateral, including real estate and natural reserves. A good credit score is the main requirement for an unsecured loan. Businesses are offered land and subdivision development, equipment and vehicle, and other loans. Traditional lenders such as brick-and-mortar banks usually offer debt financing. Banks also provide real estate loans to construct or purchase industrial, retail, and apartment buildings. Financial institutions also offer permanent and owner-occupied financing. Lenders also provide micro-loans to businesses that are looking for funds to expand or start an enterprise. Businesses can use the funds to buy equipment, fixtures, furniture, and supplies. The loan cannot be used to buy real estate holdings and land. Funding is also available in the form of short-term loans with a borrowing limit of up to $35,000. In general, the funds can go toward expansion, operation, and acquisition.

How to Apply

Banks require documents such as licenses and business certificates, loan application forms, and others. Business owners must submit documents such as financial statements, bank statements, business plans, resumes, and income tax returns. Most financial institutions require that borrowers present their personal and business financial statements, along with their cash flow projections and income statements. Bring your cash flow statements, corporate resolution, and proof of non-business income. If you are applying together with a cosigner, you need to present recent paystubs. Legal documents to submit include commercial leases, franchise agreements, and others. Some banks also require that applicants submit copies of contracts and business registrations. You may want to explain whether you will use the funds for business expansion, product development, or your current near term expenses.

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Secured and Unsecured Loans from Private Lenders

April 30, 2014 By Jonathan

Whether applying for an equipment or real estate loan, government financing offers attractive terms. Governments also offer microloan programs to non-for-profits and small businesses. Businesses also use microloans to purchase supplies and inventory and for working capital. With some loans, collateral may be required, but not all assets are acceptable. There are different types of collateral to use, including natural reserves, plants and equipment, real estate, and others. Equipment and conventional loans are two options to consider. Many businesses apply for government financing and small grants. One reason to apply for a business loan is to cover emergency repairs . Entrepreneurs, small business owners, and new start-ups apply for financing. The requirements are different for new and existing businesses. Applicants are asked to present documents such as their tax returns, business plan, bank statements, and others. While there are requirements to meet, government loans can be used to renovate an existing facility or construct a new building.

The funds cannot be used to pay delinquent federal or state withholding taxes. Companies use business loans for expansion, operation, and acquisition. Peer to peer lenders, banks, credit unions, and other lenders offer to find small business loans. Loans are offered to small and large businesses in different industries.

Loans from Private Lenders 

While applicants for government loans may have to fulfill planning and training requirements, private lenders are more flexible. Financing is also available from private lenders and venture capitalists. Business loans usually come with a fixed interest rate. Borrowers are asked to present a business plan, forecasted financial statements, and other documents. Your credit score is an important factor in that an excellent score shows to banks that you are a trustworthy borrower.

Your chances to get an attractive offer increase if you submit a business plan. Some financial institutions require that borrowers have a cosigner or pledge some asset. You can offer livestock and crops, certificates of deposit, bonds and stocks, and other assets.

Venture loans are one option, but they are difficult to obtain. The type of loan to apply for depends on your project, location, and other factors. Businesses can choose from disaster loans, small business loans, and other types. While the government offers grants, applicants must meet stringent criteria. Financial institutions offer business credit cards and commercial loans.

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