Business Finance Solutions

Archive for the ‘Small Business Loans’ Category

A recently new service made available to small businesses in the US is called Small Business Loan Options. This is the website for you if you have ever wanted help getting a business loan. This is not a revolutionary new idea, as there are certainly other sites that try to accomplish the same task. What is unique and different about it is not the problem that it attempts to solve but how they go about solving it.

Most sites out there that go about making this type of claim are simply lead generation sites. Business funding sources and lenders and brokers employ their services to drum up business. Their main goal is to generate leads for brokers and lenders, and they are compensated for delivering a certain number of leads. It’s easy to see the flaw in this system. They work for the lenders, and only make money by satisfying their needs and sharing the private information of its users as many times as possible. They live or die by the number of leads they can deliver to the maximum number of lenders.

In this scenario, it is almost inevitable that your information will simply be shared with the highest bidders, without regard for the quality of that lender. You’ll end up talking to banks with high rates, since they’re likely to be the ones with the biggest budgets. It’s also tricky because your privacy has value as well. They can sell your information up to 10 times sometimes, which is to be expected when that’s what their incentive is. After all, they get paid for delivering leads.

Everything is done differently at Small Business Loan Options. Privacy is a big priority for them, so the first question in their application online allows you to specify the number of lenders that you want to reach out to you. This is a big plus when it comes to privacy. You can trust that if you say you only want 1 lender to contact you, you’ll only get phone calls from 1 lender, even if Small Business Loan Options would be better off selling the lead 5 times.

The other, main benefit of their system is that it’s not set up to deliver your information to the highest bidder. They take the information you fill out and build a business profile for you, which they use to match you with the most suitable lender. This means that you’re only matched with lenders who have the greatest chance of being able to get you approved for the deal that you want.

If you want a small business loan quickly, Small Business Loan Options has to be your best choice. It’s fast, easy and secure, plus you regulate how many lenders they give your application to.

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The need for short term funding comes up from time to time for business owners. In order to secure a much larger loan, businesses will sometimes utilize a bridge loan to hold them over. For many different reasons, this happens from time to time, but it is very common in real estate transactions.

Because they are so large, commercial loans are more involved than regular business loans. And, not surprisingly, they are able to take a very long time to wrap up. Between the time it requires to close a deal on a building, and how long it takes you to actually get a bank to agree to lend you cash, it could take months sometimes. After which you’ll need the bank to actually lend you the cash whenever you close on the property. Due to the short term needs required by businesses in a real estate transaction, and entire type of business funding was born in the form of bridge loans.

In order to help businesses get through the months preceding the execution of a commercial mortgage, bridge loans fill that gap by offering quick, short term access to capital. Bridge loans are short term. Sometimes, they can be amortized over just a few months. The cost also tends to be greater than normal.

For most people, this higher rate is acceptable, more or less, because of the size of the bridge loan. This is because bridge loans tend to be much smaller in comparison to the larger, second loan lined up. On a smaller dollar amount, a high interest rate still won’t come out to a high cost, dollars wise. It’s almost negligible when you compare it to the size of the additional round of funding you have lined up. So when you add both loans and both interest rates, the interest rate on the bigger loan will have a much higher impact on the effective rate of both rounds of funding.

Something else to keep in mind is that most bridge loans have one major contingency. They require that you already have that second round of financing locked up. Without a commitment from another bank for the larger round of financing, you’ll probably be out of luck in trying to get a bridge loan. Since the mortgage you’re likely acquiring is so large, and the bridge loan comparatively small, most bridge loan providers, in order to minimize the risk involved, will require that you pay off the bridge loan as soon as you receive the mortgage.

Small Business Loan Options can help to connect you with industry-leading lenders who provide bridge loans, among other things. Your business profile and your personal preferences drive their algorithm to help match you with great lenders within their network.

About John Walters

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Unsecured business loans and business funding come in a variety if different types. Alternatives to traditional business funding including things such as asset based loans or inventory financing. As with most things these days, the choices can be overwhelming for many people. People usually just stick to what they know when they’re presented with too many choices or options to choose from. Merchant cash advances and traditional business loans get a lot of love for this reason.

Unsecured small business loans and merchant cash advances both have their advantages for sure. But this is one reason that they are so popular among business owners. small business loans can be a very low cost source of funding, and merchant cash advances are fast and easily accessible. Asset based loans have their own advantages, so what are some of them?

This is an advantage to some and a disadvantage to others, but these types of loans are generally short term. Depending on what you plan to use the proceeds of the loan for, you may need a long time to repay it. But many times, people just need a quick infusion of capital that they only need to use for a couple of months. Since risk is lower on short term loans, the cost of an asset based loan can be very low.

Plus, the loan is tied to collateral, which also reduced a lender’s risk. How much you can borrow is based on how much your collateral is worth. The amount of your loan is usually some percentage of that value. No one ever gets approved for 100% of your collateral’s value. As a way of protecting their investment, they will liquidate or sell your collateral to repay themselves. They don’t want to have to spend a lot of time and energy on the open market trying to find a buyer, so they need to be able to sell it at a discount while still being able to cover their losses.

There are people who’ll lend money based on the strangest items, whether it’s for a business or a personal loan. There are companies who specialize in funding based on strange collateral. Whether it’s a collection of baseball cards, a boat, or your wine collection. As long as it has value, you can probably borrow against it.

Click this link for a link to Small Business Loan Option’s web page, where you will see just how easy they make applying for a small business loan. Not only is it really easy and fast, but you also control how many lenders they’ll share your application with.

About John Travers

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