Business Loans

We all know banks are not lending money.

We also know that the few opportunities that may exist from borrowing are made much more difficult by the banks requiring better credit than ever, and many of you have suffered credit hits because of the current downturn, reduced revenues and increased overhead expenses. Thus, it is even harder to get a loan.

This is a problem.

Aside from normal operating requirements requiring lines of credit, and the desire to make acquisitions of many sorts, there is also a great need for capital to fund workouts. Workouts reduce debt paying small amounts in consideration of large reductions of debt. But you must be able to support the cash requirement or it cannot be done.

Frequently this becomes a critical issue as a workout may mean you remain financially alive so the capital required to fund a workout is critical to your emergence and survival.

So what does one do when loans are generally unavailable and with an upside down situation even with good credit banks are reluctant to lend to you.

The answer, hard money. Non bank lending, private lending, high points, high interest, low loan to value ratio but flexible terms.

Currently we are arranging a hard money loan with 10 points and 14 – 16% interest…Wow! Who would believe this? Not all hard money lenders are this steep but this situation is.

Why would someone do this? Simple, the nest savings will be many hundreds of thousands of dollars, about a million, and the actual cost of the loan for the first year is about $50,000. Steep? Yes. But compared to saving his business and reducing his debt by a million, the $50,000 is a bargain. It facilitated huge gain and survival, all for a mere $50,000.

This here is a place for hard money even at its hardest. Especially when supporting a workout…

Call us if this issue is holding you back…There is an answer.

Call Norm at 413-584-2581…he will arrange a no obligation teleconference for us to discuss your options.

Author: Don Todrin
Article Source: EzineArticles.com
Provided by: Canada duty tariff

This is a very complicated issue with many contributing factors:

Some of the issues are net worth, income, spousal income, protected retirement investments, family, basic overhead, secured debt, other assets, other business interests, medical issues, education, age, where you love, what the assets in your business are worth, structure of the offer, and previous income history to name a few. There are just as many more not listed as each case is unique and each case requires a unique evaluation and presentation. Each case requires its own special evaluation.

However, if done appropriately and within SBA guidelines and as dictated by much experience seeing what works and what does not work, if done correctly and presented effectively and if a trust relationship has been established between the bank and us as third party representatives of a defaulted borrower, we have typically experienced forgiveness debt between 90% and 95%! That works.

We have seen attempts to execute an effective Offer in Compromise with the SBA on a defaulted loan directly by the borrower, refused with a significant 50% cash offer. Why? Not presented or evaluated correctly and the borrower is the last person to effectively create a trust relationship with the bank as he already broke his word and defaulted on the contract, the borrower is the least credible and the least likely to get the best possible result.

Of course there is the issue of what to offer and how to offer it, that only experience will reveal and if doing it for the first time, as a borrower would be doing, it is impossible to know what to do. Even your lawyer, unless he specializes in Bank workouts and SBA workouts with massive debt forgiveness, he too will be clueless as to how it really works.

Most Offers in Compromise are rejected. Some do eventually get worked out but at much higher amounts than if handled by experts who know the path.

When properly done, our clients pay between 3 – 10 cents on the dollar, with some paying in a lump sum while others we arrange term payoffs over time, a few years up to 5 if necessary.

This is affordable. This truly allows the borrower the opportunity to get on with his life again and move into a new income producing venture be it employment or entrepreneurship. He has his life back and has not lost his home.

While most homes are upside down and, thus, offer no value from foreclosure liquidation, some are not upside down and have equity and these must be handled in a few specific ways to prevent the loss of one’s home. We know how to do this and most borrowers do not. So we can easily say not one of our clients has ever lost their home to a bank or SBA liquidation process if they were represented by us prior to the foreclosure and liquidation.

Debt forgiveness and no loss of one’s home are possible, if you know what you are doing.

Author: Don Todrin
Article Source: EzineArticles.com
Provided by: Beading Necklace

Is looking for a home loan giving you a headache? All those lending institutions, their commercials, so many loan programs to choose from? They all start looking the same. How can anyone pick the loan that’s right for them?

You need to start your due diligence. Learn the type of loan that suits you best. Knowledge is the key to finding the right deal. The bank loan agents or loan brokers want to fit you into the program they think is best one for you.

You need to know about no income verification home equity loans. This is a second mortgage loan that does not require you to provide income documentation to qualify for the loan. If you do not have enough equity in your home you can still get a loan that is 125% of your homes value. Debt consolidation loans are for those who have a really unmanageable amount of credit card debt. Use this loan to pay off all your debts with one payment each month and it’s tax deductible. Bridge loans, as the name implies, is a loan used to bridge the financial gap between money required for your new property completion, prior to your existing property having been sold.

You can get personal loans, business loans, even loans for your wedding, SBA loans or a loan if you are unemployed. What ever your circumstance might be, most likely there is a loan out there for you. A good place to get more information is on the web.

Author: Lawrence James
Article Source: EzineArticles.com
Provided by: Duty tariff

I have been asked many times, what will the SBA actually do? Will they liquidate our home, people ask in disbelief? Will they really garnish my wages? Many do not believe these procedures will actually occur, but they will.

If either ignored, or a reasonable deal is not entered into, they will resort to the above procedures.

As for your homes, it is true that we frequently see large subordinate loans guaranteed by the SBA result in either voluntary attachments, subordinate mortgages, or the bank / SBA gets a judgment lien and applies it to your home. Either way they are locked onto your home with all the debt you own. They will wait you out, someday you will want to sell or refinance, and then they will be there for their payday.

If there happens to be at least 20% of value in equity in your home, they will consider foreclosure as there may be enough in it to yield a return on the cost of foreclosure and liquidation.

Any way it goes there will be no return on your home… ever.

So the conclusion is, the debt must be worked out. There are no other options that protect your financial condition, or your home. You may get to live in it for a long time but why pay the mortgage on an asset you will never experience any equity in?

Garnishment happens all the time. Foreclosure and liquidation, yes, and if not the lien will always be there.

It is a tough game, call in the experts, Call us and we will arrange a no obligation teleconference for us to discuss your options. There are options, we have a winning strategy.

Author: Don Todrin
Article Source: EzineArticles.com
Provided by: Guest blogger

Are you thinking you need a home business loan to start a work at home business? Nothing could be farther from the truth. There are many start-up home-based businesses that require very little to no money at all.

To start a business in debt is insane. Most people go into business to make money and get out of debt, not to lose money. A home business loan puts you more in debt than when you started. You need to pay on the loan while paying your existing bills before any money ever comes in. Plus there is never any guarantees when and if your own business is ever going to make any money.

Over 95% of all home businesses fail due to people starting a work at home business and expecting to earn enough income immediately. If working from home was that easy there would not be so many failures. I know I have been there.

Now I make money at home on the internet and the cost is so minimal. Most of what I do has no over head costs what-so-ever. Monthly, money is coming in instead of going out. I am actually seeing a profit instead of a loss. All I need is my computer and my internet access. Those are my two main expenses.

Start building a business to see if it is profitable before you decide to go into debt to grow it. The business you start out with may not be the business you want to end up with, but this way you can start generating extra income to help fund your permanent business goal. A legitimate business is not going to make you rich over night no matter what business you get into.

Find a home business on the internet that will generate part time to full time income with out major over head expenses. You are looking for a business that requires no credit card debt or a loan to start. Be care full of the opportunities that promise over night riches. You do not want anything that has a recurring monthly debt.

While you are making an income off your start-up business, research all you need to know about making money on your goal business. Find out exactly how much money you will need on hand to start out and what your monthly expenses will be. Build your start-up business to the point that this can support your main business desire.

A work at home business is part of the American Dream. It does not have to end up in a nightmare with the debt of a home business loan or the feeling of failure. Start simple and build a business with a profit, not a loss.

Author: Denise Nuttall
Article Source: EzineArticles.com
Provided by: Digital Camera Information

photo credit: JOE M500

Collateral – A borrower’s asset that is given up to the lender if the borrower is unable to pay back the principal and interest on the loan; making the lender the new owner of the collateral.

Credit Score – A numerical expression based on the analysis of a person’s credit files, to represent the perceived likelihood that the person will pay debts in a timely manner.

These are two terms that one must be familiar with when contemplating a business loan, simply because banks consider both of these when determining whether or not to approve the loan. Many small business owners may not have one or the other (sufficient collateral or a high credit score), leading them to search for unsecured business loans, which only require borrowers to posses one of these requirements.

An unsecured business loan is a business loan that is not backed by collateral. In most cases, this leaves unsecured business loan lenders to rely solely on the borrower’s credit rating. Collateral serves as a means for the lender to get back the money that they have lent, should the borrower default on the loan. It is a back-up plan for lenders to make sure that they get their money back no matter what. read more »