http://www.loan.com/business-loans/ Business loans are lending instruments designed to fund a number of things related to the operation, founding or expansion of an enterprise. Small business loans, commercial loans and bad credit business loans can be obtained from such sources as traditional banks, credit unions and specialized lending institutions. The total cost of business loans will depend on a number of things, including current lending interest rates. Business loan rates adjust up based on the creditworthiness of the enterprise. A business loan calculator can help company owners gain a rough idea of what costs might be, but the numbers are mere estimates. http://www.loan.com/business-loans/the-risks-of-a-ground-lease.html A ground lease allows a tenant of the land to build and develop on the property. Essentially, the tenant leases the land for a period of time. He or she then develops on the land during that period, perhaps building a home or another structure. At the end of the time frame on the lease, the original owner reclaims the land and any improvements made to it. The risks of a ground lease will be different for a tenant than for a lease holder. Risks to Tenant A tenant will typically take this loan option if he or she... Wed, 18 Nov 2009 15:04:00 -0800 http://www.loan.com/business-loans/the-risks-of-commercial-building-financing.html The risks of commercial building financing must be understood before any type of investment is made or a loan request for financing is granted. Every type of loan has certain risks, but the degree of risk involved in financing commercial buildings or investments is often greater because of the amount of property and money involved. The key to minimizing the risks involved with financing a commercial building is to arm yourself with knowledge so that you can be prepared for the ups and downs that will come with the financing of the commercial building. The First Risk: Construction Risk The... Wed, 18 Nov 2009 15:03:00 -0800 http://www.loan.com/business-loans/emergency-fsa-loans-qualifying-with-bad-credit.html Emergency FSA loans can be a great way to recover after a natural disaster to your farm. You can get the money you need to rebuild the farm at a lower than market interest rate over many years to repay. While there are many advantages to this program, it does not do you any good if you can not qualify. If you have bad credit, you may be worried about qualifying. Here are a few things to consider if you have less than desirable credit. Acceptable Credit The good thing about this program is that the government will work with... Wed, 18 Nov 2009 15:02:00 -0800 http://www.loan.com/business-loans/dangers-of-a-farm-service-agency-fsa-loan.html FSA loans are designed to provide assistance to farmers and ranchers in order to assist in this country’s agricultural development. The Farm Service Agency, which is part of the U.S. Department of Agriculture (USDA), makes direct and guaranteed loans for the purpose of owning a farm in the form of a direct and guaranteed Farm Ownership loans (FO). FSA also provides guaranteed operating loans (OL) for family and commercial sized farmers and ranchers. The dangers of FSA loans, in general, have to do with what may happen to the credit of the borrower if they are unable to pay back the... Wed, 18 Nov 2009 15:01:00 -0800 http://www.loan.com/business-loans/applying-for-rural-housing-service-community-facility-loan-online.html A rural loan from the U.S. Department of Agriculture’s community facilities loan programs allows specific local organizations or government offices in designated areas access to loans backed by or directly from the federal government for improving or building facilities such as hospitals, housing or schools. Going online can streamline the application process. The following information explains what these community facilities programs are and how to research them and apply for them online. The USDA’s Community Facilities Programs For designated rural communities, with “rural” defined as having fewer than 20,000 people, the U.S. Department of Agriculture makes direct loans and... Wed, 18 Nov 2009 15:00:00 -0800 http://www.loan.com/business-loans/mini-perm-loans-during-the-slow-economy.html If you need startup capital, you may consider mini perm loans as an alternative financing method. These short-term loans usually only last 3 to 5 years, meaning you will be able to pay them off quickly if your business is successful. Mini perm loans are usually secured, using an asset your business owns as collateral. Securing a loan makes it cheaper for the borrower. With the short time frame and the lower interest rate, mini perm loans have a lot of advantages in a slow economy. Secure Start up Financing Getting start up financing is challenging in a recession. Many... Tue, 17 Nov 2009 10:21:00 -0800 http://www.loan.com/business-loans/are-there-federal-loan-options-for-apartment-building-financing.html Apartment building financing requires a loan that is essentially a hybrid between a mortgage and a small business loan. Since the building will be an income source, a small business loan is appropriate. However, the building will be zones as a residential property, and you may even elect to live there, making the loan like a mortgage. These unique loans are available through both private and federal loan options. Private Apartment Building Financing You may opt to seek a private lender for your apartment building financing needs. A private lender will be much more flexible than a public lender.... Tue, 17 Nov 2009 10:20:00 -0800 http://www.loan.com/business-loans/using-business-cash-advances.html A business cash advance can be used to help meet a short-term funding need.  The cash advance may be secured against a receivable or another asset. The terms for these loans vary depending on the lender and provide a way for a business to access quick cash when needed. Use of Business Cash Advances The business cash advance may be a useful temporary resource. It should be noted that the interest rates for this type of borrowing will be higher than what is charged on other types of loans such as business credit lines or credit card borrowing.  Because... Tue, 17 Nov 2009 10:19:00 -0800 http://www.loan.com/business-loans/how-business-lending-services-match-up.html Business lending services provide a wide array of lending services. Their purpose is to meet financial needs by providing necessary funding.  The business lending services available can be both banks and private institutions, and provide loans that have flexible terms. Some loans may be backed by the U.S. Small Business Administration (SBA). Business lending services can fulfill the needs of businesses easily and quickly, depending on the nature and amount of the loan being requested by the business. This flexibility, and ease of use, makes some business lending services easy to apply for. Seeking funding directly from a traditional... Tue, 17 Nov 2009 10:18:00 -0800 http://www.loan.com/business-loans/dangers-of-using-the-sba.html The U.S. Small Business Administration (SBA) is a federal government agency designed with the purpose of helping develop and grow small business in the United States. The SBA provides loan guaranteed to private lenders who make loans to businesses. The guarantees provide lenders with assurances that if the business fails or the borrower defaults on their loan obligation, the government will step in and provide relief up to 90 percent of the loan amount. SBA Loan Guarantees The SBA does not provide direct loans other than disaster relief in the case of a natural disaster.  Using the SBA as a... Tue, 17 Nov 2009 10:12:00 -0800 http://www.loan.com/business-loans/5-factors-that-contribute-to-fluctuating-interest-rates-on-business-loans.html Interest rates on business loans are determined by a combination of complicated factors, both on a personal level and on a national level. Your business's financial plan matters, but your business does not exist in a bubble. The national loan market will have a large affect on your ability to get loans and your loan rate. 1 - The National Prime Interest Rate The national prime interest rate is set by the Federal Reserve in an effort to stabilize the economy and promote growth. During a recession, the Fed encourages borrowing by setting the rate very low. This means... Wed, 11 Nov 2009 15:07:00 -0800 http://www.loan.com/business-loans/what-happens-when-you-default-on-a-business-loan.html When you default on a business loan, you will have financial repercussions similar to any loan default. Depending on how you structured the loan, you may also see personal repercussions. Default is a word that means you failed to meet the terms specified in your contract. Some loans go into default after you miss just one or two payments, and others only go into default if you fail to pay off the loan in full on time. Regardless of the exact terms of what a default, you will have significant penalties. Drop in Credit Score The first financial consequence... Wed, 11 Nov 2009 15:06:00 -0800 http://www.loan.com/business-loans/the-risks-of-mini-perm-loans.html Mini perm loans are a type of short term financing to get your construction business or project on its feet. The term “perm,” in this case means permanent. These types of loans typically mature in three to five years and are thus labeled mini-perm loans. Once the loan term is over, more permanent financing is arranged based on the merits of the project. While mini perm loans offer a great way to get a business or project started, there are a number of risks to opting for this type of financing. Project is Not Immediately Profitable Mini perm loans... Tue, 10 Nov 2009 15:02:00 -0800 http://www.loan.com/business-loans/what-is-a-mini-perm-loan.html A mini perm loan is a temporary form of financing that is commonly used in commercial projects. It is a tool that many investors use to get around traditional bank loans. If you are ever involved in a commercial development project, the chances that you will come across the need for a mini perm loan are great. So what exactly is a mini perm loan and how is it beneficial? Take a look at these details before you consider looking at a mini perm loan. Types of Property Any income producing property is a great use of a mini... Tue, 10 Nov 2009 15:01:00 -0800 http://www.loan.com/business-loans/fsa-loans-for-young-farmers-and-ranchers-applying-online.html The FSA makes loans to young people in many areas engaged in farming and ranching projects. These loans are extended under the "youth" program to farmers and ranchers between 10 and 20 years old. The program helps assure young farmers are not competing with established farmers for the same loan programs. It also helps teach young people the ins and outs of farm financing. If you qualify, you will be eligible for a very low interest loan that has lower requirements than other private loan programs. Loan Requirements The basic loan requirements for this type of loan are not... Tue, 10 Nov 2009 15:00:00 -0800 http://www.loan.com/business-loans/the-risks-of-bootstrap-financing.html Bootstrap financing is building a business with little, or no outside capital. Many successful businesses have used this business model to get started. While there is some merit, it does not come without risks. Here are a few things that you should consider before bootstrapping it: Increased Stress When you bootstrap a new business, it usually requires that you keep your day job. A new business venture will not turn a profit right away, so you will need some cash flow coming in. When you burn the candle at both ends you will face a lot of increased stress.... Mon, 09 Nov 2009 15:07:00 -0800 http://www.loan.com/business-loans/the-benefits-of-bootstrap-financing.html Bootstrap financing is a term used to describe creative ways businesses finance their purchases without actually taking loans. Instead of going to a lender to assure they have cash on hand for each purchase they make, these businesses will essentially create contracts with vendors and agree to pay in the future. Once the business has made a sale, the business then relays the cash immediately to the vendor. Bootstrap financing may require the use of letters of credit, which are like IOUs, or they may be arranged through a private contract. Either way, a business that elects this method... Mon, 09 Nov 2009 15:05:00 -0800 http://www.loan.com/business-loans/what-is-bootstrap-financing.html Bootstrap financing is a unique way of financing your business goals without actually going into debt. Most people who engage in bootstrap financing want to avoid taking out loans. They also likely have a relationship with their business community that allows them to survive on very little cash. Bootstrap financing does not work for all types of businesses due to the way it is carried out. Examples of Bootstrap Financing There are a number of practices that can fall into the general category of bootstrap financing. One of these practices is operating with vendors through letters of credit, or... Mon, 09 Nov 2009 15:04:00 -0800 http://www.loan.com/business-loans/the-benefits-of-a-ground-lease.html One commonly overlooked way to develop real estate is with the use of the ground lease. A ground lease is common with large institutions such as schools, universities and public buildings. However, many developers overlook them, thinking instead that they have to own the land they build on. There are several advantages to using a ground lease for your development projects. Saves Capital Using a commercial ground lease actually will save you a lot of money up front. Traditionally, you have to go out and acquire land before you can begin building. In many developed areas, land can be... Mon, 09 Nov 2009 15:03:00 -0800 http://www.loan.com/business-loans/contract-loan-program-qualifying-with-bad-credit.html A contract loan provides funds to a company or new venture that has an assigned government contract. Contract loans are available at state and national levels, but they are only available under certain, restricted requirements. Meeting these requirements is half of the issue; you will also have to prove you are creditworthy to secure the loan. If you have bad credit, there are some options to consider in order securing the loan. Basic Requirements for a Contract Loan First, you must meet the legal requirements for a contract loan. Depending on where you are applying, either in your state... Thu, 05 Nov 2009 15:02:00 -0800