Tag Archives: business
Business Start up Loans: Easy way to start business
Procuring a loan for starting a business is not an easy task as collateral requirements and a well laid business plan are essential for the loan. Availing these loans is a long and tedious process. Banks are reluctant in giving loans to new entrepreneurs as the risk involved is very high. A business start up loans helps an entrepreneur in several ways. The money procured can be used as initial capital investment or can be used to purchase or renovate a building. The money can also be used for advertising by flaunting banners, distributing business cards, announcing on radio and television, starting a website. This finance availed through loans can be used to purchase new equipments and tools. These business loans are crafted to make available the required funds that are needed to start a new business. These loans can be financed through any banks or lending institutions
Business start up loans are short term loans designed for meeting short term working capital requirements by a business. These loans are generally paid back within a year. There are several long term business start up loans which are availed by many business owners with an establish business and who wish to expand their business and grow or may want to purchase fixed assets. The repayment period of these loans is much longer which ranges from 3 to 5 years.
Bank lending is based on the entrepreneurs ability to pay back the loan rather than the security he offers against the loan. Here credit rating and history plays an important role. Entrepreneurs with good credit history get better benefits over people with bad credit history. It is possible for the applicants to chose the terms and conditions of repayment of loans. The can extend the repayment period if they find it difficult to pay off the loan on the due date.
Start up Business Loans is a short term monetary service for the citizen of U.K at their house door. If you are a salaried individual earning a decent salary from a reputed employment you can easily acquire the opportunity of getting the amount within a very short period of time less than 24 hours. Necessary details are available with the lender to help you avail the best financial deal giving you comfort from trauma.
The major benefit is that the funds are available without getting into credit verification. No formalities are done to know your prior financial dealings. Poor credit issues like late payments, arrears, CCJs, IVA, bankruptcy etc can also get the funds without difficulty.
Business Loans – 7 Reasons Not To Use A Bank (Page 1 of 2)
So you’re a small business owner and you need a business loan to further the objectives of your company. Where do you turn?
When it comes to a business loan or commercial real estate loan, there are many good reasons NOT to turn to a traditional bank. Here are some of the most important reasons. Many small business owners, will find most of these points directly applicable to them.
“THE BANK TURNED ME DOWN”
Of course the biggest reason most small businesses go looking for alternative sources of commercial real estate loans is because they have been declined by the banks. Small businesses are often forced to look for other sources of funding because the banks will not provide it. This is not even listed below, since there are many positive reasons to prefer non-bank funding, EVEN IF YOU CAN get an approval from a bank.
REASON 1 – The minimum loan amount available from banks is too high
In many cases banks will not offer a commercial real estate loan for less than $250,000. So if you only need $100,000 you will be pushed to borrow more than you actually need. Or if your property will not support a $250,000 loan you are out of luck with the banks.
The solution is to look for an alternative funding source that can provide a lower minimum amount. Some commercial financing services will go as low as $100,000, and will often give you better terms and much better service than the traditional banks.
REASON 2 – Many traditional banks will charge you an up-front “commitment fee” just to examine and process your application
Banks usually think they are doing you a favor by processing your application, so they will often make YOU pay for their attempts to win your business.
The solution is to find other established and credible lenders who are eager to offer you better service without charging you a fee for processing your application.
REASON 3 – Most traditional banks will severely limit the amount of cash you can get from a commercial real estate loan.
Banks usually have very narrow rules about where you can use the cash derived from a commercial real estate loan. If you need a cash injection for your business, or want to use the proceeds from a commercial mortgage as a down payment for another property, most banks will not be interested in that type of loan.
Look for a lender who does not restrict your use of the cash derived from commercial real estate loans. Some services, (see links below) can provide commercial loans that give you up to $1 million in cash to use however you want.
REASON 4 – Most traditional banks require detailed business plans before approving a commercial real estate loan.
Many small businesses have business plans, but they are usually not sufficiently detailed to satisfy the banks. As a result, applying for a commercial real estate loan from a bank can turn into a very time consuming and expensive process. Creating the type of business plan that is adequate for the banks will usually cost thousands of dollars.