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Business & Commercial Finance Articles...

Purchase Order Financing: allows your business to accept that big order that you just sold but that your business doesn’t have the capital to fulfill.  If your business has a purchase order, and your business needs cash to fulfill it, purchase order financing might be the best solution...  A Broker knows the ways of these lenders and has the contacts to secure financing for virtually any type of business needs.   

Asset Based Financing: If your business has cash flow and working capital needs, asset-based financing may be the solution for you. These solutions are often not met by traditional banks. Asset-based financing options are customized to meet the individual needs of each company. Asset-based financing gets you money fast and works like a line of credit based upon your company’s eligible assets. The typical assets may be accounts receivable, purchase orders, inventory, equipment or machinery.

Points & Interest Rates: Even the most experienced business owners have difficulty understanding the relationship between the interest rate and the points or fees associated with their loans. The reality is that the two are directly related in that "points" are nothing more than interest that is charged up front. The actual rate and number of points a borrower pays is largely dictated by the quality of the borrower’s credit. As the credit quality decreases, the interest rate, points and fees increase. This is because these loans are more difficult to fund and pose a greater risk of default to the lender.

Things You Should Know: If you see advertisements for lenders offering extremely low rates, don't be misled. Most of the time these very low rates refer to the starting rate on an adjustable rate mortgage or graduated payment mortgage. In other cases, the rate advertised may be for a balloon loan. This is a loan where the remaining balance will have to be paid off early. An example of this is called a 30 due in 5. In this type of loan your payments are based on a 30-year term to make them affordable.

Types Of Business & Commercial Loans: Every business has five major components necessary to operate. These are personnel, equipment, housing, products and services, and last but most vital, is capital. It takes capital to get the other four. Business owners often fear banks and commercial finance companies. This fear has its foundation in a lack of lender knowledge.

Our Services Overview: If you are considering a purchase or construction of commercial real estate, we can offer you up to 90% financing whether it's owner/user or strictly an investment. We have access to some of the most aggressive programs in the industry and with loan terms up to 25 years you'll be surprised at how easy owning commercial real estate can be.If you are planning to start a business, your best opportunity to obtain financing may be the assistance offered by a Broker. Through their network they have provided capital for hundreds of start up businesses nationwide.

Sale-Lease Back Financing: Using existing equipment, businesses may be able to get needed capital. With Sale-Lease Back financing, the company’s current equipment remains under you, the business owner’s full control and is never taken out of production. It’s a simple transaction. Your business sells your equipment and leases it back. The capital your business receives from this transaction can be used for anything your business needs, without restriction. In addition to the initial cost and obsolescence, leasing your equipment can also provide your business with a substantial tax advantage. While you should always consult with your tax advisor first, most equipment leases can be structured so that you can write off 100% of the annual lease payments. By contrast, current tax laws only allow a business to write off the interest paid on loans. However, because a lease is a rental and the business is only using the equipment, the business can usually write off all of the monthly lease payments just like any other legitimate business expense.

Factoring & Accounts Receivable: Frequently, a commercial bank cannot provide all the loan funds a growing company needs. A balance sheet is not liquid enough, or it can't clear off the bank debt every 6 or 12 months. A factor can provide funds to clear off bank loans periodically or make additional bank credit possible by guaranteeing accounts or replacing accounts receivables with cash. One of the biggest advantages of factoring is that businesses get immediate cash (from 70 -80% of the face value of the invoices) within 24-48 hours, which means you can accelerate your cash flow by speeding up payment of the receivables.

Payroll Financing: If you are considering a purchase or construction of commercial real estate, we can offer you up to 90% financing whether it's owner/user or strictly an investment. We have access to some of the most aggressive programs in the industry and with loan terms up to 25 years you'll be surprised at how easy owning commercial real estate can be.If you are planning to start a business, your best opportunity to obtain financing may be the assistance offered by a Broker. Through their network they have provided capital for hundreds of start up businesses nationwide.

Lines Of Credit: A line of credit for a business is, in our opinion, one of the first things a business should obtain when starting a business. Lines of credit are simple. It’s similar to a credit card, and you typically access the credit line by writing a check. The interest rate is usually much lower than a credit card. A credit line is an amount of credit that you can access as you need it in any way you need it to grow your business. For example, let’s say you obtain a $50,000 line of credit. If you need say $12,000 you access it and you still have $38,000 you can access at a later time. When you pay it down to say $8,000 then you have $42,000 more you can access. To maximize your credit lines it may take the help of a Broker. Credit lines can really come in handy to fill in the gaps for a business. Need to make payroll and a little short? Need to pay a vender or an unexpected repair? What about those slow times of year? Whatever the gap might be, the credit line can be a great back up.

Commercial Property Loan: is a mortgage loan on commercial real estate.  As a business owner, why not purchase your property instead of lease it?  Owning the building could be the business owner’s best exit plan or retirement plan.   


Small Business Administration (SBA) Loans:A business that may not be able to get a traditional loan may be able to obtain funding through a SBA loan and at reasonable terms.  The Small Business Administration guarantees major portions of the loans through the SBA loan program. 
 


Working Capital: Working Capital can be the lifeblood of a company’s growth.  It’s simple. Take your current assets minus your current liabilities, and the difference should equal your working capital.  Companies that have a negative working capital may have a hard time growing.  However, companies with a positive working capital generally are able to grow and expand.  You may say, my working capital number is positive, but how do I turn that into cash to grow my business?  A Broker can analyze your bottom line to find ways to take advantage of your positive working capital. 

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douglas.evans@dwilliamcapital.com
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