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Further
Reading ...
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DON'T Give Your Customers What They Want! - John Payne
One of the mantras we hear repeatedly in business is "The customer is always right." I'm here to tell you that if you want to build a thriving business you need to forget that saying, and take note of Payne's Law #1 "The customer is always right-...
Choose The Right CPA For Your Business - Maria Marsala
CPA's are more than just individuals who do your yearly taxes. They can advise you a long list of other services, which may include advice on your accounting system, financial, retirement, estate and tax planning. CPA's are part of a business...
A CEO with Emotional Intelligence - Susan Dunn MA Clinical Psychology The EQ Coach
Herb Kelleher was on my recent Southwest Airlines flight from San Antonio to Dallas – of all things! As you know, he was the president of Southwest, the man who made it a success. Then he resigned, I think he must be about 70, and is now Chairman of...
Four color postcard printing: Made easy - Marlon D Ludovice
Every company is thinking of a better idea how to introduce their company in the market. But because business postcard is widely known for its capability to capture the interest and to gain more clientele, every single creative style of business...
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How to Get a Business Loan in Five Steps.
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Written By:
Dave Miller
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Need funds to startup or expand your business? Follow these steps:
A lender looks at a loan request in three sections known as the "three C's". They are:
- Credit. Did you pay previous lenders back as contracted?
- Capacity: Can you afford to pay back this loan?
- Collateral: If you don't pay back the loan from what asset can the lender recover their principal?
Step one is:
1. Identify your strength and weaknesses in the "3 C's". Do this as would a lender - with a very critical eye. Identify your loan to value ratio and your debt service coverage ratio. If you have reason to believe that you credit is less than sterling, get a copy of your credit report including your credit score
Each lender has different criteria with the cost of the loan being higher as your strength in the "3 C's" is lower. Step two is:
2. Identify lenders who lend to your level of borrower and to your industry type. Call lenders to get their criteria. Learn about the SBA 504 program and 7A loan guarantees. Find who others in your industry have used for financing.
If there is a gap (not a canyon, just a gap) between your borrowing ability and lenders criteria, a loan broker may be able to help. They spend their working hours finding second and third tier (more aggressive and more expensive) lenders and establishing relationships with them. They can act as a salesperson for your project in ways that you as a principal cannot. Step three:
3. If you cannot find lenders on your own, consider hiring a commercial mortgage broker. Be careful - in many areas there is little or no protection under the law for commercial transactions. While a small upfront fee for out of pocket expenses is reasonable, - continued below ...
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continued ...
shy away from any that want large upfront payments. If they can do the deal they will be paid very well at settlement. If they can't do the deal they shouldn't be taking your business at all.
Once you identify a list of potential lenders or hire a broker, get prepared. Do not think that the business loan process is merely a matter or forms and paperwork. While there is more paperwork than you'd ever want to see, it is more of an inquisition. Step four:
4. Be an expert salesperson for your project. Obviously, we think that your should use FundablePlans.com to build a written proposal. Whatever method you use, know your numbers and be able to defend them. Understand your market and be able to speak competently about it. Know your competition. Most importantly, (from step one) know your strengths and weaknesses as a borrower and be able to maximize the strengths and minimize the weaknesses.
If you are successful with steps one through four, you will expect to "hit a home run". You may, but most likely you won't. Step five:
5. Don't give up. Where one lender might have too many loans of your type in her portfolio, the next may need exactly your loan to meet his goals (loan officers are paid to lend). This is not to say that you should "beat a dead horse", but if you have a viable project, a good presentation and good "C's", you will be able to get financing.
Good luck with your project, if you have questions about funding feel free to use the e-mail link below.
Dave Miller is a business consultant and the creator of FundablePlans.com, an online business plan builder at http://www.fundableplans.com.
dave@fundableplans.xom
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| _Additional Resources ... |
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Reinventing real estate, Part 2 - Charles Warnock
Reinventing real estate (Part 2: How online and empowered consumers are taking charge and paying less. Demanding consumers “Internet buyers tend to be better informed on market conditions and better prepared to act on the home they want when...
Things To Consider Before Buying a Condo Hotel or Resort Residence - Leon Altman
Resort home ownership, such as condo hotels and fractional shares is different from typical home ownership. So it is important to ask certain questions before signing the purchase agreement on a resort property. The following list of questions...
Income Ideas And Money Making Magic!!! - Simon Kiarie
Dear Internet Friend.... I’m going to be direct and to the point, with no warm-up. I believe in saying it like it is. If you are looking to start your own home business then you have come to the right place ...
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