Commercial Loans - Do Mobile Service Franchises Make Sense for Unemployed Folks

Okay so, let's say you are unemployed, and you are looking for a job, and you've sent out resumes in your industry but there are no takers, no one is hiring right now, and it could be three or four more years. You know you can't hold on that long, and you must find employment. Meanwhile your unemployment benefits are not going to go on forever, you know this.

Perhaps you might consider buying a franchise, of course if you do, you may end up using what little savings you have left, and about the worst thing you could do is start a business being undercapitalized if you don't have enough. However, not all Franchises cost as much as you might think. For instance before retirement I was a founder of my own franchise company and we sold mobile carwash trucks. It was a service business, and the franchise fee was $20,000 + equipment and truck, which is quite typical of such service businesses.

Often, I would carry-back half of the franchise fee, meaning the franchise buyer would only have to pay 10,000, and they could pay the rest over time. And I would often allow the second-half of franchise fee payments not to kick in for the first two years. The reason I mention this is that many franchisor's today are doing the same thing due to lack of credit in the marketplace for their franchisees. Now then, a service-based franchise business operating out of the home doesn't cost as much is let's say buying a franchise restaurant where the franchisee might have to put in half a million to a $1 million including the building.

Meaning that even if you are unemployed you might still be able to swing the loan for a small service business, and another good thing about service businesses is they typically have a faster return on investment than larger more expensive capital-intensive franchises. No, I no longer sell franchises, and I am retired as I said, but I did build my business through several recessions, and often had to help laid-off franchise buyers figure out a way to buy into our system.

What I'm saying is, this might be an option for you. No, being self-employed isn't for everyone, but it is perhaps a good choice depending on your situation, attitude, hard work ethic, and ability to follow the system. If you look through any franchise buyer's guide you will see hundreds of service-based franchises available for sale with investments well under $200,000 total price with franchisees typically ranging in the neighborhood of 20,000 or less.

Often the vendors will finance equipment, dealerships will finance the vehicle, and right now due to the state of the franchising industry, the franchisors may carry back paper on the franchise fee. Indeed I hope you will please consider all this and think on it, email me if you have questions or thoughts.

Commercial Bridging Loans

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The effects of global recession have largely passed out but it has left behind a few devastating fallouts for sure. One such fallout is lack of liquidity. Business houses are gaining grounds consistently but many are not yet healthy enough to go on a capital splurge. In such times, when a proprietor or an entrepreneur sets his glance at a property, he looks forward to commercial bridging loans to buy them. These are a great boon for people who are on the lookout for ready cash to buy property.

We know that real estate transactions are not smooth and "to the minute" tasks. Sometimes, one has to buy off a property even before he gets to sell his old one. In such cases, if he lacks liquidity or investment capital he has to shelve his plans for a later day. This might result in manufacturing problems, logistic problems and general infrastructure issues. Anyone would agree that it is not the best climate for conducting business. This is where commercial bridging loans come into the equation.

Let us take the three terms separately. They are called "commercial" because such loans are only meted out for buying commercial properties. "Loans" is a self-explanatory term. Now, let us come to the important word "bridging". This term is being used because such funds help in bridging the time lag between the sale of an old property and purchase of a new one. This loan becomes the connecting dot and makes a purchase possible. For the uninitiated, commercial bridging loans are short term secured loans.

Like it is with every other secured loan, you have to place a collateral for fetching such loans. Of course, by default, the property you are taking loan for becomes a ready collateral. Quite the contrary, you can also pledge some other property if you think it to be a fairer option.

Now, let us come to a rare point about this loan. While it has been established that it is intended to be a bridge, a short-term loan (repayment period of 1 year), you can also use it for a pretty long time. In fact, it can be utilized up till a period of 25 years. Now for the rare part- a borrower does not need to pay a monthly mortgage for such loans, all you are required to fend off is monthly interest.

The lenders expect you to keep paying the interest and settle the loan amount by selling off the current property or other existing property on a later date. In general, you can avail an amount of ??1,00,000 from this loan in UK. The rate of interest charged on such loans is a little stiffer than on an average loan but then it is open to negotiation too. If you have a nice credit history and have built your reputation as a good businessman, you can obviously fetch the commercial bridging loans at a cheaper rate of interest. There are many lenders in the market and it is best to shop around till you find the one that best meets your requirements.

Car Wash Loans - Don't Get Hosed Trying To Get Car Wash Financing

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In today's financing environment, it really doesn't matter what type of financing one is trying to obtain, it is more difficult and the process takes longer. That is fact. Car wash loans certainly fit this mold. Car washes can be cash cows. Depending on the type of car wash (rollover, tunnel or self-service) profit margins can be in excess of 90%! It is is also a cash business. The long and the short of it is, if you're looking to buy an existing car wash, there is a good chance you might not looking at the numbers the site is actually doing based on the tax returns. Some of the newer car washes are including more profit centers such as oil and lube changes without having fuel. In general, it is easier to get a loan than it is to get financing for a gas station or convenience store with a car wash. While there are potential environmental concerns at a car wash, from a lending point, it does not compare to potential environmental problems at a gas station.

To add insult to injury, coming to a city near you, it's Discount Wash! (No, that's not the name of a chain). Because the profit margins are so high in the industry, some companies have gotten the idea to come in and charge significantly less and still make a lot of money. It has really upset the applecart in many cities and some long existing businesses are no longer IN business. Many of the newer ones that are being built are charging the same to do a high end tunnel wash than you might spend at a rollover after filling up at a gas station. That is very hard to compete with. So you have to look at the business and figure out if it can still make money if you are charging significantly less and still make money with the anticipated volume increasing.

From a financing point of view underwriters and credit officers will have their own biases and prejudices. The typical requirements exist when it comes to financing from the point of view of down payments, industry experience, good credit, cash flow etc. An argument can be made that the industry experience is not as important as some other businesses. The reason for this logic is it is not like a gas station in the sense that you have to constantly be looking at what your competitors are doing on a daily basis because your competitors are not going to be changing their prices daily. Plus because of the high profit margins, it is easier to take the hit if the margins temporarily drops.

People are keeping their cars longer now so people are also taking better care OF their cars. This is only a win-win for operators.

A car wash loan can be very attractive to a smaller local bank because of the depository relationship that may be required. As with all commercial financing, the more organized you are in your presentation, the more likely you are to obtain financing. Sloppy packaging sends a message to a loan officer or an underwriter. Sloppy packaging means sloppy business practices. Sloppy business practices means less profitable businesses.

Business Loan - Can You Get One With Bad Credit

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As you might already know, a bank will often go through the credit history of the business as well as personal credit history of the small business owner before they grant them a loan. If your business credit is in good standing, you can still see applications denied because of your bad personal credit.

So, if your personal credit score is lower than 650, this article will give you a few pointers that will help you secure a small business loan despite your bad or mediocre personal credit. That being said, you should also know that you will invariably pay higher interest rates even if you secure a business loan using some of the information mentioned below.

Subprime lenders - These lenders are a lot more lenient in the loan application process with the downside being that they will charge very high interest rates on the loans, often between 12% and 17%. Though it might still be a feasible option for a cash strapped small business, it does not really provide a rosy situation in the long run.

Transfer of ownership - In some cases, business owners have a partnership in a business where the other partner might have an excellent credit history. If the partner is willing, you can transfer the ownership to his name to have better chances of getting a loan approved. You can then transfer the ownership back in your name after the loan has been approved. It is completely legal, but many lenders will include clauses in a loan prohibiting the transaction so know what the loan documents dictate.

Secured business loan - As the name suggests, you can try obtaining a business loan with collateral which will greatly increase your credit worthiness in the eyes of the bank. The bank will see reduced risk in granting you a loan if it is able to see that you can attach property or other assets as collateral.

Cosigner - This is also known as a guaranty. If you have friends, family or business partner who can cosign for you, your loan will stand a much better chance of being approved. Of course, the cosigner must have a very good financial background and credit score.

Local business - Unlike large nationwide chains, small banks will often have a much different perspective when it comes to financing a local business. If you have had a bank account at a local bank, it might still be the best place to approach for a small business loan. Even in this day and age, personal relationships still matter.

In conclusion, all is not lost if you have been denied by many banks. You can use one of the methods above to try again and secure that business loan that you really need.

Benefits of Invoice Factoring Companies

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The invoice factoring companies have mushroomed overnight and so their dominance and presence of the market is both incredible and beneficial for the business community as a whole by virtue of the fact that represent a very real improvement over the previous conditions imposed by the old regime of the banking industry as a whole.

In short, the invoice factoring companies have helped to thoroughly improve the overall conditions for the average business owner in that they provide more competitive and far superior terms of business and engagement than do the banks themselves.

First off, no longer will the business owner be forced to sacrifice and compromise the long term growth, development and financial viability of their business in exchange for a short term cash infusion, as is so often the case with most traditional methods of business financing such as banks loans and venture capitalist investments.

Instead, if a client company decides to rely upon a factoring agency to support and help it in the acquisition of additional capital then the client company will be able to use such companies without having to worry about selling equity in the business, or even securing assets of the business as collateral.

Because of this, this directly means that the client company will be able to rely upon invoice factoring companies much more heavily than would be the case with commercial lenders. Commercial lenders will only ever award a loan or other form of financial support only if they are convinced that the business that has made the application will be able to not only pay the loan back, but also survive in the process.

Furthermore, the commercial lender will also want some measure of assurance that in the event of default by the borrower for whatever reason, they will be able to recoup their losses, and so as a matter of course, they will demand that the borrower actually submits assets of the business as collateral. It stands to reason then that if the applicant business owner does not have any more assets to actually provide as collateral then the chances of them acquiring a loan are fairly remote indeed!

In addition, the extent of the level of the support provided by the commercial lender will invariably go no further or deeper than the provision of the initial capital sum. Beyond that? Their involvement is non-existent. However, invoice factoring companies on the other hand will provide the client company with a fairly extensive range of support, ranging from logistical assistance as they assume control for the collection process, as well as book keeping assistance.

Given how saturated the market currently is with the sheer volume of different invoice factoring companies, this means that with just a little hard work and searching, the client company will be able to find themselves the right company for them, who provides the best possible value for service.

The client company may wish to compare the different rates of commission which are charged by the different providers.

Accounts Receivable Financing Options

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Account receivable financing, which is also known as Factoring, is an effective option for any business that requires sufficient cash availability as working capital that can not attain financing from traditional or conventional money lenders. Companies need extra cash flow in their business to meet growth, seasonal demands, business opportunities as well as cash requirement for short term need. Accounts receivable financing is an excellent solution for any business as it provides immediate and flexible cash. This not only opens avenues for the business to grow, but also helps in restructuring, hiring additional employees, taking advantage of supplier discounts and even funding payroll.

With the help of alternative financing options, you are in a better position to have access to cash without giving up company equities. Moreover, account receivable financing options are less expensive and restrictive compared to equity financing. This form of financing allows you to decrease or increase the financed amount based on your company's needs and the current size of your business. It also provides administrative support to help manage all the receivables without employing additional staff and allows you to have access to cash on request, but this is based on your account receivable eligibility criteria.

Various companies who offer this financing provide their clients with customer credit reviews for both existing and new customers, collection services, invoice processing, and customized reports. There are various benefits of accounts receivable financing: it is flexible, it can be increased when your business grows and it can be decreased accordingly; it allows the business to get back to conventional banking; it helps pay off business loans and make payroll; it helps to meet up seasonal demands; it gives you the power to reinvest in business and fund marketing to make your business grow; it helps you to focus on your company's core business; and it helps to take early discounts on payment purchase.

Accounts receivable financing saves time and allows you to generate new business and service your customers. Receivables management will help you to shorten the turnaround time of payments which not only ensures excellent cash flow but also minimizes interest expenses. Thus, accounts receivable financing will help your business grow and provide you with sufficient cash to meet expenses. Bernard Linney and his dedicated staff is ready to provide you with guaranteed solutions to help your business grow in 2011 and beyond.