Business Loans Without Banks – 14 Reasons Not to Go to a Bank for a Commercial Mortgage

Traditional banks serve a very important role in the U.S. economy. Nevertheless, when it comes to a business loan, there are over a dozen reasons to consider a source other than a traditional bank for a business loan. For most small business owners, five or more of these reasons are likely to be applicable. With many business loan borrowers, banks have already declined their loan application. That particular compelling reason to use a source other than a traditional bank (being declined by a traditional bank) is not included in the list below.

Here are 14 reasons a business owner might not go to a traditional bank for a commercial real estate loan.

Reason # 1: Minimum commercial real estate loan for many banks is $250,000 or more. With non-bank business lenders, the typical minimum commercial loan amount is $100,000.

Reason # 2: Most banks charge an up-front commitment fee. Most non-bank business lenders do not charge an up-front commitment fee for a commercial mortgage.

Reason # 3: Most banks will severely limit the amount of cash a business borrower can get when refinancing a commercial mortgage. When a borrower is refinancing their business property with non-bank business lenders, they can typically get up to $1,000,000 in cash.

Reason # 4: Most banks are reducing their commercial real estate loan interest in properties such as bars/restaurants, auto service businesses and funeral homes. Non-bank business lenders are very interested in these business categories (and many other special purpose properties) for a commercial mortgage.

Reason # 5: Most banks will require business plans for a commercial mortgage. The cost to provide this is usually several thousand dollars. Non-bank business lenders typically do not require business plans as part of their underwriting process for a commercial real estate loan.

Reason # 6: Most banks will require tax returns for a commercial mortgage. Non-bank business lenders do not require tax returns or any income verification for a Stated Income commercial real estate loan. Many banks not requesting tax returns will ask borrowers to sign IRS Form 4506 (which authorizes the lender to obtain tax returns directly from the IRS). Non-bank business lenders typically do not request borrowers to sign this form.

Reason # 7: Most banks will require cross collateralization of personal property for a commercial real estate loan. Most non-bank business lenders do not require cross collateralization of personal property for a commercial mortgage.

Reason # 8: Most banks will require balloon payments or the loan will be subject to recall after periods as short as 3-5 years for a commercial mortgage. With a commercial real estate loan via typical non-bank business lenders, all properties are eligible for 25-year loans and some up to 40 years.

Reason # 9: Most banks will not permit seller seconds or secondary financing for a commercial real estate loan. With many non-bank business lenders, if the business borrower uses a seller second or other secondary financing for a commercial mortgage, the business borrower can obtain a loan with a CLTV up to 95% of the property value.

Reason # 10: Most banks require income verification or audits even after the commercial real estate loan closes. Non-bank business lenders do not verify income either before or after a commercial loan closes with a Stated Income Business Loan Program.

Reason # 11: Most banks have strict guidelines for “sourcing” or “seasoning” of assets or ownership to qualify for a commercial mortgage. Most non-bank business lenders do not have any requirements or limitations involving sourcing/seasoning of funds or seasoning of ownership.

Reason # 12: Very few banks offer an assumable commercial real estate loan. Typical non-bank business lenders have an Assumable Commercial Loan Program which includes loan amounts up to $1 million.

Reason # 13: With most banks, a typical commercial real estate loan will require 3 to 9 months to close. At typical non-bank business lenders, most commercial mortgage loans close in 45 to 55 days.

Reason # 14: Very few banks use Stated Income (no tax returns, no income verification) for a commercial real estate loan. Non-bank business lenders use the Stated Income Approach for commercial mortgage loans in their Stated Income Business Loan Programs (most commercial mortgages up to $2-3 million qualify for these programs). This especially benefits self-employed business borrowers who frequently have income that is erratic and difficult to document properly.

Asset And Sales Finance Can Aid Business Development

When it comes to setting up a new business, it can be difficult to come to terms with business terminology – especially if the process of setting up and running a company is completely alien to you. For instance, speaking to your bank about asset and sales finance may be a daunting notion in itself; but when you consider the possibility of getting tangled up in the jargon – and perhaps even losing credibility with your bank – the experience seems even more intimidating. However, if you keep your wits about you and make sure that you’re up to date on the latest financial terms, your bank’s asset and finance solutions are sure to benefit your business.

Make sure you begin with the basics: for starters, familiarize yourself with what asset and sales finance is. Essentially, asset and sales finance is a service through which banks can help businesses obtain a range of equipment – including plant and machinery, IT equipment, commercial vehicles, office furniture and cars, among a range of other necessary business items. The fundamental difference between asset financing and sales financing is that sales financing will help businesses obtain quick access to cash, while asset financing helps companies fund business equipment.

Cost-effective and expedient sales financing solutions will help businesses find enough working capital for operation. Factoring and invoice discounting are two important sales financing solutions. With factoring, for instance, up to 95 per cent of the value of approved invoices can be advanced within a certain time period, with the balance being paid on receipt. Invoice discounting involves a similar process, but with one crucial difference: in factoring, the client’s customers are aware of the bank’s involvement, whereas in invoice discounting they are unaware.

Asset financing is important because it will help business owners acquire assets in a financially viable way, without eating into vital cash reserves. Many banks and financial providers will offer a range of asset financing solutions to its customers. Hire Purchase is one example of an asset financing solution; this can help businesses obtain the asset they need immediately, but payments may be spread across the life of the asset in question. Hire purchase schemes will often allow you to keep the asset in question for a certain fee at the end of your term. Another important asset financing solution, called Operating lease, will allow a business to benefit from a particular asset, while the bank itself will take on the risk of the depreciating value of the asset.

Purchase Order & Letter of Credit Financing

Many business opportunities come with an associated challenge. For most entrepreneurial businesses, the greatest challenge is financing the business opportunities created by your sales efforts. What are your options if you have a sales opportunity that is clearly too large for your normal scale of operations? Will your bank provide the necessary financing? Is your business a startup, or too new to meet the bank’s requirements? Can you tap into a commercial real estate loan or a home equity loan in sufficient time to conclude the transaction? Do you decline the order? Fortunately there is an alternative way to meet this challenge: You can use Purchase Order Financing & Letter of Credit financing to deliver the product and close the sale.

What is purchase order financing?

Purchase order financing is a specialized method of providing structured working capital and loans that are secured by accounts receivables, inventory, machinery, equipment and/or real estate. This type of funding is excellent for startup companies, refinancing existing loans, financing growth, mergers and acquisitions, management buy-outs and management buy-ins.

Purchase order financing is based upon bona fide purchase orders from reputable, creditworthy companies, or government entities. Verification of the validity of the purchase orders is required. The financing is not based on your company’s financial strength. It is based on the creditworthiness of your customers, the strength of the commercial finance company funding the transaction, and in most cases a letter of credit.

What is a letter of credit?

A letter of credit is a letter from a bank guaranteeing that a buyer’s payment to a seller will be received on time and for the correct amount. If the buyer is unable to make payment for the purchase, the bank is required to cover the full amount of the purchase. In a purchase order financing transaction, the bank relies on the creditworthiness of the commercial finance company in order to issue the letter of credit. The letter of credit “backs up” the purchase order financing to the supplier, or manufacturer.

Is purchase order financing appropriate for your sales program?

The perfect paradigm is a distributor buying products from a supplier and shipping directly to the purchaser. Importers of finished goods, exporters of finished goods, out-source manufacturers, wholesalers and distributors can effectively use purchase order financing to grow their businesses.

Is purchase order financing appropriate for growing your sales orders?

Purchase order financing requires you to have management expertise- a proven track record in your particular business. You must have bona fine purchase orders from reputable firms that can be verified. And you must have a repayment plan; often this is from a commercial finance company in the form of accounts receivable or asset-based financing.

You should have a gross margin of at least 25% to benefit from purchase order financing. Sellers of services or commodities with low margins, such as lumber or grain, will not qualify.

The bottom line decision for purchase order financing:

It can take two or more years to develop a profitable business. Banks generally base their lending limits on a business’ performance for the past two or three years. Purchase order financing, combined with letters of credit and/or accounts receivable or asset-based financing can give you sufficient funds to cover your operating costs, financing costs and still realize significant profits. If you qualify for purchase order financing, you can grow your business by taking advantage of large purchase orders and eventually qualify for bank financing.

Banking and Finance Attorney

The Arizona banking and finance attorney career center will help you with state and federal laws pertaining to the regulation of banks and financial institutions, including establishment of the institutions, day-to-day operations, and banking, both electronic and international.

However, before you approach the Arizona banking and finance attorney career center, you must understand the jobs of banking attorneys, how to select a good lawyer, and many other things. Banking attorneys deal with the state and federal statutory laws pertaining to the regulation of banks and financial institutions. Even if you are not facing litigation or a regulatory enforcement proceeding, retaining a banking and finance attorney to assure compliance with all state and federal banking laws, rules and regulations governing the operations of your institution will certainly help you avoid legal hassles later.

If you have a banking or finance problem and you do not already have a list of prospective lawyers, one of the greatest places to start your prudent search is the Arizona banking and finance attorney career center. You can do a free search to come up with a list of lawyers. Moreover, once you have a list of lawyers, you want to find out every thing you can about them and then do some initial screening to whittle down your list to three or four prospective candidates. You need to locate the best resource to get extensive yet authentic information on the various factors associated with the Arizona banking and finance attorney career center. This would help you to select the right Arizona banking and finance attorney career center.

An Introspect and Retrospect of Global Home Loans and Finance

Residential properties are investments. Lenders provide the financing whether the case be the homeowner living in it or renting it out. Financing for these properties depend on the lender. The borrower then decides whether he can access the cheapest form that is made available to him.

Global home loans and financing establishments aren’t banks. Like any fiscal industry, they look closely at numbers. The way global home loans and finances review applications is by looking at the borrower’s businesses.

There is an assurance that every applicant will be treated with respect. Just like in a credit card application, global home loans and financing establishments are not allowed to discriminate any applicant.

Each applicant is appreciated and respected. By their approaching the global home loans and financing establishment, the industry is strengthened in a fiscal manner. Each transaction is an opportunity therefore there is the promise to provide the applicants with the urgency and services that they deserve.

These establishments will help you reduce your document loans. It will also assist you clear your borrower’s slates if you had credit problems before.

Borrowers applying for a huge amount of loan are also assisted. Also, those borrowing for construction purposes are prioritized. It is not just for home equitly loans or equity lines of credit.

The good thing about this is that most global home loans offer zero down and 100 percent financing. This helps home buyers to get their dream homes. Their offers are mostly interest only and home refinancing plus loan plans are made available for their clientele.

If the applicant is refinancing a mobile home, global home loans can also assist them. Any home loan program that has no or little down payment can be made available to purchasers who have little or no down payment. Those who have bad credit need not worry because they will also be assisted.

Now these financial institutions comprise the global financial system. These also act internationally, meaning they expand further than their national or regional counterparts.

The financing under these global home institutions are closely checked by the International Monetary Fund, as well as the Bank for International Settlements. In a way, this is a business of global financing, therefore national agencies, government departments, finance ministries, central banks and private institutions are somehow involved.

When talking about how these global home loans and finance started, it must be noted that its history is different from that of the history of money as well as economic history.

It all started in Europe where banks and financiers started a fiscal business that will not only benefit their own institution but also that of their partners. The milestones from this revolutionary idea led to the creation of reputable exchange banks such as The Royal Exchange and the Amsterdam Stock Exchange.

Later on, more notorious international institutions such as the International Monetary Fund, the World Bank and the World Trade Organization were established. All three play a big part in global home loan and financing because they are integral to the financial system.

The International Monetary Fun records all international payments. It also serves as the lender whenever problems occur.

The goal of World Bank is to give funding and take credit risks in return for favorable terms towards fiscal development in not only developed countries but to the developing countries as well.

Finally, the World Trade Organization is the mediator whenever negotiations and trade disputes go awry.

In the long run though, all transactions that are accumulated by global home loans and financing pass through government institutions. They are also actors in the financial system. Banks, exchanges, funds and private players have crucial roles. They are closely intertwined to the banks.

The global home loans establishment may be responsible for approving applications but as money rolls in, the government and international transactions come into play. However, the global financing system has been debated throughout the years because of its need for reformation.

It has been questioned whether the billion mortgage banking industry such as the global home loan is necessary. In fact, the answer is quite obvious. Since it has been successfully implemented and has given various loan transactions, there is no doubt global home loan and financing is crucial to the fiscal industry.

Importance of Trade Finance & Structured Trade Finance for Importers and Exporters of Commodities?

Trade finance is the method importers and exporters of commodities and goods use to finance their business. Basically, trade finance has been in existence for many thousands of years – and one can trace the roots of trade finance and structured trade finance right back to the early days of China and the silk route, Mesopotamia and Europe. Trade Finance was around long before Europeans settled in America and long before the world’s stock markets were born!

Today, trade finance is a massive, multi-billion dollar business. As the world trades more and more goods and commodities are bought and sold, so more and more banks and financiers are needed to lend money to finance the purchase and sale of these goods and commodities – right across the global supply chain.

How is trade finance and structured trade finance useful?

Take an example: imagine you are a trader in cocoa beans in Cote d’Ivoire, buying beans locally and selling them to foreign buyers. To make your purchases, you will need to have money to buy the cocoa up-country in Africa, prior to their export. Where will you find money to make these purchases? And supposing you are the international buyer; the shipper, purchasing from cocoa traders all over West Africa – how will you finance your transactions, which at any one time may exceed your cash reserves? What might be supported by your bank who, if they are traditional lenders, will only lend against your balance sheet?

This is where trade finance and structured trade finance is useful – your business can grow and develop if you use the services of a specialist trade finance department who will structure trade finance structures can be tailored to your needs, using the collateral of the goods you are trading, rather than your own balance sheet or other assets.

What is the basis of trade finance and structured trade finance?

Goods and commodities have an underlying value of their own. For example, if cocoa beans are worth many hundreds or even thousands of dollars per tonne, then once a big pile of beans is accumulated in one place; in a warehouse or on a ship, it is worth a lot of money. A bank may lend money against the total value of the beans, minus some amount to take account of price and other risks
.
It is the same for every commodity or trade good which is resalable. A bank will make a loan as long as the collateral “adds up” and as long as the bank is comfortable with the way the deal is structured between both the buyer and the seller. Of key importance is that if something goes wrong the bank is able to take possession of the commodities or goods and sell them to realise monies to repay any loan amounts outstanding.

Basically, when we talk of structured trade finance we are talking of deals whereby complex arrangements are put in place to ensure a bank can take possession and sell the underlying capital used for the loan; in this example, the goods and commodities themselves.

Is trade finance complicated?

No. It is a simple business although the structures used in trade finance in more complex deals require a lot of work for all of the parties involved. This is why the total loan amount of a structured trade finance loans must be high enough to warrant the involvement of highly-paid bankers, lawyers and other advisers.

Racing Awards, Medals and Customized Gear for Runners

Running, whether it be a 5k with the family, a 10k for an extra challenge, or a marathon for the elite runners, can be a very exciting and memorable experience. Running is a very personal sport to lots of people, as it can be great exercise and can make you look and feel very refreshed. Tons of awards are given out to winners at races each year. For people organizing these racing events, finding customized and personal running gear can be difficult, as well as finding unique prizes for running champions. When orchestrating a race, you want to have a memorable competition. Medals and unique prizes can help to make the race more exciting. Participants can keep prizes as souvenirs, and remember the experience better because of a keepsake.
The most important souvenir a competitor can take home is a winning medal. Those are worn with pride, and showed to family members and friends. They are often hung on walls, or shown off where they can be seen. Of course, medals need to be personalized, unique, and specific. You cannot award a running champion with a medal that doesn’t recognize what it’s for. It is often a perfect idea to find a company that will provide you with customized prizes for winners. Often, you can ask for customized medals that include the date, the name of the race, and the name of the company sponsoring and orchestrating the event. That way, when people proudly show their winning medal to others, the people who made the event happen will receive the credit and publicity they deserve.

In addition to medals, running apparel and gear can be a great way to make the race more memorable. Unlike medals, gear is commonly worn and would be used often. Passing out swag, such as customized shirts, jackets, hats, and bags can be a great way to add to the excitement of the race. Races with their own gear are viewed as more unique, as they have customized logos and attractive designs. Shirts can be given out to families, and jackets can be sold at the finish line. Hats can be passed out before the race to keep the sun out of the athlete’s eyes. And, of course, bags can be kept forever and used for multiple occasions. Having the name and date of your race on these items can help to increase publicity and help the runners remember what a successful and memorable race it was. Customizing these mementos can help to define a great race, and will definitely help a race to be more exciting and enjoyable.

Gamble on Line – Possess these Various Advantages for your own

There Really are assorted kinds of games and sports which can be found around the world and human beings possess significant interest within them. There’s simply no uncertainty at the simple fact this one among the absolute most essential explanations for why the games and sports really are all important to this public is on account to how those toss some type of troubles .

There Is just 1 particular certain form of video sport which likewise causes it to be into this set of their treasured games which people are able to playwith. And it’s also not any aside from betting. Betting fulfilling the exact same and is exactly about challenges. There are areas. But once again if it regards betting on line the huge benefits really are far a great deal greater than that which it’s possible to see right now.

Now you Must definitely make certain which you’re choosing the optimal/optimally internet web sites as a way to acquire through together using the practice of betting absolutely. And this is what’s going to offer a great deal of benefits to you.

A Variety of Benefits of gaming Internet:

After Would be the numerous benefits of betting on line that individuals have to be mindful of:

· Convenience:

Comfort Is decidedly among the greatest explanations. Here really is some thing which functions being a boon because you aren’t going to need to go everywhere whatsoever.

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This Is another benefit that is important you have to know of. The internet singapore casino has ever let exactly the exact same as properly. You may be certain you are surely becoming to engage in midnight or sunrise much.

? Perform from anyplace:

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Each of In making certain you’re receiving through, These items can help you With the consequences for on line.

Coloring Pages Growing Horizons Of Kids

Children are amazing. They know whatever they are taught. If You wish to enhance the horizon of one’s children, and it’s time to get them participated together with coloring pages. Yes, even they all are on line pages that offer many different ways to bring the hidden talent in your kids. These coloring pages comprises of exceptional lessons that are conveyed at a manner that is fundamental to enable kids to grasp.

Coloring Pages – Benefitting Childrem

Worrying concerning the cost in Association? Chill, as they truly have been available at no price tag. Furthermore, you need to stay away from the stress of shopping for exceptionally costly gadgets that are educational. Everything you will need to have is your distribution for your own printer. It can open the pathway for both kiddies to take high benefits in association with internet colouring pages.

You must be wondering why children Have to Be included in coloring. The main reason is that coloring an image will absolutely control the entire attention of one’s kid. They is going to be in a favorable position to concentrate regarding completing their work followed closely by presenting the most useful finished merchandise.

Parents Can Be Getting Brief Repite

Additionally, Mom and Dad Will Have the Ability to Acquire short respite as your Children will probably undoubtedly be coloring pages which is really a funny exercise. On the web coloring pages have been well known to give children several of the best educational gains entirely. They is going to soon be memorizing numbers along side titles of veggies as well as creatures.

More vulnerability to coloring, simple will probably be learning methodology. Kiddies will secure a chance to fortify the coordination between eye and hand . Since they’ll be learning to color lines, abilities will grow in a ultimate manner. Psychologists state that coloring offers an insight into emotions of children in an imaginative way.

Which exactly are you thinking? Involve your kids with coloring Pages in the earliest.

Types of Wood Siding Available for Homeowners

When building your home, even the smallest decision could make a world of difference in what it ultimately looks like. This is also true when undertaking an exterior redesign project. Siding, among other key characteristics, is one of those big decisions that could entirely alter your home’s exterior appeal based on your decision.
Although plastic siding has become a popular option in recent years due to pricing, traditional wood siding remains the preference for many homeowners. This is because wood siding offers customers numerous benefits over their plastic counterparts. Benefits include:

• Wood siding is eco-friendlier than plastic

• Wood is more aesthetically appealing

• Many types of wood are naturally resistant to mold, mildew, and rot, which allows the home owner less maintenance

• Wood lasts longer

• …And much more

One of the main benefits is that wood naturally takes to paint, stains, and other decorative options incredibly well. Plastic, on the other hand, often must be crafted in the customer’s color choice – meaning that options are limited. Once decided upon a type of wood siding, however, you can then choose any type of finish. Whether you want to paint your home the colors of the rainbow, or opt for a natural dark wood stain, anything is possible. Below we look at four of the most commonly used types of siding available: board and batten siding, bevel, tongue and groove, and lap siding. Each has their own aesthetic appeal so that there is something for every person’s unique tastes.

Board and Batten Siding

Board and batten siding is a vertical design created by using two different sized boards. The wider boards are set beneath, while the narrower boards are placed atop the joins. These narrower boards are called ‘battens.’ There are no set widths, so homeowners can choose their preference. The most commonly used measurements, however, are 1 inch by 3 inch battens placed over 1 inch by 10 inch boards.

Bevel Siding

Bevel siding is the most commonly used siding. Installed horizontally, boards are cut at an angle so that one side is thicker than the others. This creates a shingle effect, or the appearance that the boards are overlapping one another. Tongue and Groove Siding Tongue and groove siding is incredibly versatile. Available in both rough and smooth board finishes, it is fitted together tightly to give a sleek appearance. It can be installed in any direction, which does not only include horizontal and vertical, but also diagonal.

Lap Siding

Lap Siding is also known as Channel siding. This siding is very versatile, with installation capabilities for any direction (like the above tongue and groove siding). This unique siding features boards which partially overlap one another, and the ultimate results are a rustic appearance like those of a hunting cabin. If you’re interested in learning even more about wood siding -including less commonly used types available – you can contact your local siding specialist or construction expert. They will be able to give you more detailed information, including a price estimate for your area.