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-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/what-is-a-ground-lease.html Ground Lease may be described as a long-term lease of land in which the tenant is allowed to occupy and develop the land during the lease period. After the lease expires, the land with all improvements, buildings and other structures will be restored to the owner. Ground leases are typically for ten years or more. Ground Lease Agreement The lease agreement usually permits the construction of a building on the lease by the tenant. The lease agreement will also stipulate conditions for the disposition of the building at the expiration of the lease term. The building, although built at the... Mon, 09 Nov 2009 15:03:00 -0800 http://www.loan.com/business-loans/franchise-financing-during-the-slow-economy.html The slow economy has hurt many businesses across the globe. During a downturn in the economy, most businesses will be affected by it in one way or another. As a result, new businesses tend to slow down in these times. You will see fewer and fewer franchises being started by new entrepreneurs. However, regardless of the economy, there will always be people starting businesses. For these times, franchise financing can be one of the most valuable tools available for new businesses. Credit Ratings When the economy is slow, the changes in the franchise financing industry are visible. There are... Mon, 09 Nov 2009 15:02:00 -0800 http://www.loan.com/business-loans/the-benefits-of-franchise-financing.html Franchise financing can help you secure the business of your choice and allow you to follow your dream. Finding a good franchise is one of the best investments that you could possibly make. Some people get hung up on the money and need to consider franchise financing. Here are a few things to consider when thinking about financing your first franchise. Increased Options The money that you have been saving might not be enough to buy every franchise out there. You may be able to afford some of the less expensive, new franchises. The problem with that is, hundreds... Mon, 09 Nov 2009 15:01:00 -0800 http://www.loan.com/business-loans/mezzanine-financing-during-the-slow-economy.html Mezzanine financing is a unique way for a business owner to secure funds through an alternative lender. This lender agrees to make the loan without collateral in exchange for a share in equity or profit from the business. Mezzanine loans come through subordinate lenders; this means they are traditionally provided through private equity groups, mutual funds and other private investors. Because the loans come through these private investors instead of public companies, they are typically less affected by the general economic climate and are a great option during a recession. Not Dependent on Credit Score Senior loans, such as... Mon, 09 Nov 2009 15:00:00 -0800 http://www.loan.com/business-loans/the-risks-of-mezzanine-financing.html Mezzanine financing is a unique type of subordinate lending used by businesses to extend the limits of their loans. A business owner who needs more cash than a lender may provide can seek out mezzanine loans. These loans are provided by private equity groups, hedge funds, mutual funds and other private investors. This mezzanine capital is not a loan, but the business provides equity or profit-sharing opportunities to a lender. While mezzanine borrowing can increase the amount of capital a business can secure, it also presents unique risks.  More Expensive than Secured Loans Any time you opt for unsecured... Sun, 08 Nov 2009 15:05:00 -0800 http://www.loan.com/business-loans/what-is-mezzanine-financing.html Mezzanine financing is a type of borrowing companies do which appears as equity - instead of debt - on the company balance sheet. It often is used for business expansion. Since it is considered to be high-risk, mezzanine financing lenders expect a high rate of return. Debt and Equity Businesses generally raise money by borrowing it, which is debt, or by selling stock in the company, which is equity. But mezzanine financing acts as if it was a combination of debt and equity and is considered a hybrid financing mechanism. With debt, there are specific terms to which borrower... Sun, 08 Nov 2009 15:04:00 -0800 http://www.loan.com/business-loans/the-risks-of-commercial-equipment-leasing.html Commercial equipment leasing is an option for business owners who do not want to purchase the machinery or equipment outright. Most business owners who choose this option believe they only need the equipment for a short period of time or that the technology of the equipment will quickly be outdated. A commercial equipment lease is popular among new businesses for these reasons. While the idea may sound attractive and less expensive than financing, there are also many risks with equipment leasing. Damaging the Asset Just like when you lease a car, when you lease a piece of equipment, you... Sun, 08 Nov 2009 15:03:00 -0800 http://www.loan.com/business-loans/the-benefits-of-commercial-equipment-leasing.html Commercial equipment financing is becoming more and more common among businesses today. In fact, over 80% of businesses now lease at least part of their equipment because of the benefits. Keep Your Cash When you purchase new equipment, you have to come up with the amount for the purchase out of your own funds. Even if you finance part of it, you will likely be spending a good percentage of your available cash. Leasing will allow you to keep your cash on hand. Every business needs to hold on to their cash. Therefore, spending most of it on equipment does not... Sun, 08 Nov 2009 15:02:00 -0800 http://www.loan.com/business-loans/commercial-equipment-financing-during-the-slow-economy.html Commercial equipment financing is necessary for many business owners in the marketplace today. Getting the equipment you need is essential to the day-to-day operation of the business. Obtaining a loan for equipment is a great way to get what you require without having to invest capital. Many changes have been made to the loan process due to our changing economy. Higher Credit Scores Your credit score has always been a large part of any loan process. If you have a business, most lenders want to evaluate the credit score of the company. Previously,  you could get by with a... Sun, 08 Nov 2009 15:01:00 -0800 http://www.loan.com/business-loans/the-benefits-of-commercial-equipment-financing.html Commercial equipment financing allows business owners to obtain the necessary materials to either start or expand an operation. Few businesses have the cash to purchase necessary equipment, particularly heavy machinery, outright. In fact, most businesses operate on a cycle of debt. This allows them to purchase the materials they need to build profits and make sales then pay off the materials with the profits from sales. It is a commonly accepted practice to seek a commercial equipment loan in order to finance your business. Expand Profits The main benefit to seeking a commercial equipment loan is to expand your... Sun, 08 Nov 2009 15:00:00 -0800 http://www.loan.com/business-loans/what-is-commercial-equipment-financing.html Businesses requiring machinery and equipment to start or expand operations can seek commercial equipment financing. These credit lines will allow your business to purchase the equipment necessary to provide your product or service. For example, a landscaping company may require small machines that move the earth and tree trimmers. Almost any type of equipment you need to move your business forward can be financed to meet your preferences and specific needs. Types of Commercial Equipment Financing Your financing will come through a manufacturer or dedicated lender. A manufacturer, such as John Deere for farming products, may offer you direct... Sat, 07 Nov 2009 15:07:00 -0800 http://www.loan.com/business-loans/the-benefits-of-commercial-building-financing.html Commercial building financing has several benefits over traditional financing. Anyone that is considering purchasing a commercial building should consider exactly how profitable it can be. There are a few important key factors that lenders will use to determine if the building can be considered a good investment. Here are a few things to think about when debating whether or not to use commercial building financing. Protect Your Assets When you want to buy business property, you can actually make the purchase through your business name. Therefore, you do not have to go out and try to tie up your... Sat, 07 Nov 2009 15:05:00 -0800 http://www.loan.com/business-loans/what-is-commercial-building-financing.html Commercial building financing is when businesspeople receive a large loan that they use to acquire new commercial real estate. Types of commercial real estate include hotels, apartment complexes, hotels, retail spaces, office buildings and car dealerships. The Application Process You may apply for commercial building financing online, at a bank, or at most lending institutions. To determine your qualifications, lenders will ask you to submit the following documents when applying for commercial building financing. Financial Statements – In most cases, only successful businesses with proven track records of success, great credit histories, and good tax records qualify for commercial... Sat, 07 Nov 2009 15:04:00 -0800 http://www.loan.com/business-loans/bridge-financing-during-the-slow-economy.html Bridge financing is a form of temporary credit businesses can use before more permanent financing can be arranged. Bridge financing is often used for startup companies who need cash immediately to get off the ground. It can also be used to expand a business, acquire a business or even get through a period of slow profits. In a recession, bridge financing is affected along with all other forms of credit. Bridge lending is often more expensive, harder to find and less flexible when the economy is slow. Bridge Financing Is Expensive in a Recession During a recession, interest rates... Sat, 07 Nov 2009 15:03:00 -0800 http://www.loan.com/business-loans/the-risks-of-bridge-financing.html Many business and households use bridge financing as a method to secure immediate cash flow while more permanent financing options are pending. Business financing can take months to arrange as legal and insurance issues are handled. The same is true for large home loans. If you need funding in the mean time, bridge loans can help cover the gap. The loans do come with their own unique set of risks, however. Loan Matures Quickly Short-term loans mature very quickly. Most bridge loans must be paid off in full within a matter of months to a year at the most.... Sat, 07 Nov 2009 15:02:00 -0800 http://www.loan.com/business-loans/what-is-bridge-financing.html Bridge financing is a short term loan that helps individuals finance a period of time when they need additional money. In essence, bridge financing “bridges” the gap between time periods. Bridge financing is popular because it allows borrowers to act and receive funds in a short period of time. Bridge Mortgage Let’s suppose you purchase a new home, but your old home is still on the market and has yet to sell. In this case, a bridge mortgage would give you the extra cash needed to help cover both mortgages until your original home sells. This type of bridge... Sat, 07 Nov 2009 15:01:00 -0800 http://www.loan.com/business-loans/the-qualifications-for-an-asset-based-loan.html Asset-based loans are given to a borrower who posts collateral with the lender. These loans have many advantages including a lower interest rate. The borrower is assuming a large part of the risk; the borrower provides a guarantee of funds to the lender in the form of the collateral. Because the lender is assuming less risk, the lender will be willing to fund the loan at a lower rate. The lender will also be willing to fund the loan even if the borrower is not as qualified. Assets in Excess of the Loan Amount You will not be able... Sat, 07 Nov 2009 15:00:00 -0800