Commercial Loans

The Key Factor In Commercial Loans

The commercial loan niche can be very complex, but it also can be very simple to navigate. You just need to understand the key factor at issue with commercial loans.

You have a business. You need to expand. You need a new building/machine/asset of some sort and simply don’t have the money on hand to fund the purchase. The answer is to head down to the local commercial bank and fill out an application. Before you do that, you decide to start reading up on the commercial loan process. Read more…

SBA Loan Appraisals: Machinery and Equipment

The recent passage of the Small Business Jobs Act (H.R. 5297) has galvanized the business loan market, so if you are a small business looking for money to recapitalize or expand your business, this is a great opportunity for you to contact your local bank about a loan. Even if you don’t own real estate to offer as collateral, you may find that the machinery and equipment used in your business may satisfy financial lenders. Your local lending institution can help arrange a qualified equipment appraisal to determine if your business is eligible for an SBA loan.

Even with this legislation, bankers still have to satisfy bank auditors and examiners who have raised the bar for the quality of the loan documentation. Therefore a “one-sheet wonder” appraisal from an appraiser without a recognized designation will not meet federal requirements. For instance, I recently got a call from a bank that was being audited and had a “one-sheet” appraisal in a loan file. They needed me to come out ASAP and do a qualified equipment appraisal to reassure the auditors and forestall any problems for the bank. Clearly, the first appraisal was not only a waste of money but also created an embarrassment for the bank’s management when they had to call the borrower with the news of the required new appraisal. Read more…

Why It’s Time to Bring Factoring Into Your Financing Equation

In your search for commercial financing in the midst of the ongoing credit crunch, here’s something to factor into your consideration: It may be time to look at factoring in a whole new light.

It’s unfortunate that, for whatever reason, factoring has gotten a bad rap. A lot of the myths about factoring simply aren’t true-for example, that factoring is too expensive to be considered a viable commercial financing option for the average small business. In truth, factoring can make the difference between success or failure for companies operating without adequate working capital-at a cost that’s probably a lot less than most business owners think. Read more…