Commercial Loans for your Business

Commercial loans are a boon for business owners because they enable you to fulfill the cash needs of your business. When you decide to apply for a commercial loan, you have to consider several options and factors. It is ideal to seek expert help of a finance broker because he/she has the best knowledge of the field.

When you are in business whether, as a sole trader or a company, there will be times when the business cannot generate enough cash flow to meet its ongoing operating expenses. Your need for cash will also arise when you will expand business operations and purchase much-needed business assets. If you are a business owner and experiencing cash flow fluctuations, your next step should be to consider getting a commercial loan.

A commercial loan is also called a business loan and it can be set up for you, whereby you can use the proceeds of the loan to fund large capital expenditures or operating expenses that your business may otherwise be unable to afford. You will need to consider a number of options when deciding on a commercial business loan. Here is a list of options you should consider:

1. You will have to decide on the type of acceptable security you want to provide (e.g. residential, commercial or industrial)

2. You will have to decide if the securities taken by the lender/credit provider consist of Registered 1st or 2nd Mortgages, and

3. You will have to decide on the loan type (e.g. Interest Only or Interest plus Principal), the maximum loan size and the maximum loan-to-value ratio (LVR) percentage.

If you elect to fund your large capital expenditures or operating expenses with a commercial loan, you should consider all of the following factors:

1. If your business requires working capital or is at an important stage of development that requires a capital input, a short-term commercial loan may provide an effective solution. This loan is taken out for short-term and has a pre-determined exit date.

2. If you are considering purchasing a commercial property to either operate your business or to create a commercial property, you may require a longer-term commercial loan.

So, these are the main options and factors to think about when you are deciding to expand your business operations or generating enough cash flow to meet the ongoing operating expenses of your business. If you are confused about anything regarding commercial loans or want to seek expert help, you can consult a finance broker. He/she will understand your business requirements and suggest the best financial solution.

But, remember to be vigilant in the selection of the finance broker. Make sure that you choose a qualified expert who is a specialist and who knows what the credit policies and standard requirements are for commercial loans.

Business Cash Advance

Business cash advances for merchants are provided by sources who purchase a pre-determined amount of Visa/MasterCard sales receipts.

Cash Advances (also known as "account receivables factoring" in the banking industry) have been around for a while, but it was not until just a few years ago that merchants could take advantage of this type of funding. A business cash advance can be a great way for a company to get the funding it needs and pay the lender in a timely manner. Since the payments come directly from your credit card merchant account through a percentage of each credit card transaction your business makes, the amount due on the loan can be quickly and easily paid back.

General qualifications:

##Your business must accept credit cards as a form of payment
##Your business must process at least $2,500 / month in Visa/MC sales
##Personal or business credit is usually not a major factor

The funds from this program is not a loan. It is an advance against Visa and MasterCard merchant account receipts. It is re-payed through the merchant account itself. We can help you find a great source of business cash advances for you business. If you do not already have a merchant account, we highly recommend that you sign up for one. We can also help you find the right merchant account provider to allow you to obtain business cash advances. Come run a capital search to find a great source of business cash advance for your business.

Applying For A Line Of Credit At Your Bank!

Your business will be in a much better position to apply for bank financing now that you have established a favorable banking relationship and positive bank rating. A line of credit has always been favored among business owners because it provides you access to cash to make purchases that are either too large for business credit cards or too small to take out a business loan.

The credit line amount that gets issued is also a major benefit and can range from as little as $10k to upwards of $100k. Having access to this type of cash on demand allows you to cover the costs of any unforeseen expenses or major purchases your business may incur in the future.

A line of credit:

•Provides access to the same amount of cash as a loan would, and usually faster.
•Allows you the opportunity to write checks against your line of credit for any type of business expense, any time you want.
•Saves you money because it gives you a lower rate of interest compared to an unsecured loan.

When you apply, your bank will review your banking relationship and bank ratings. They will also order a business and personal credit check. If you do not have sufficient collateral then you will probably need to supply financials and tax returns.

Remember, the stronger you’re bank and business credit ratings are the less your personal credit will weigh on the approval process.

There are many kinds of lines of credit you can apply for, such as:

1.Unsecured business line of credit
2.Secured business line of credit
3.Stated business income line of credit
4.Commercial business line of credit
5.Line of credit business loan
6.Seasonal business line of credit
7.Committed or uncommitted line of credit

Each one of these types of credit lines serves a specific purpose. For example, a committed line of credit is when a financial institution is legally bound to provide the funds, rather than giving the lender the option of suspending or canceling your credit line based on market conditions.

This type of credit line provides you with the security of knowing that your line of credit won’t be slashed at anytime. Unfortunately, many small business owners found themselves completely cash strapped during the recent economic downturn when banks were closing and cutting credit lines left and right.

So before you apply for a line of credit it’s important to be fully knowledgeable on all the types that are available. Whether you have less than perfect credit, a seasonal business, collateral, or strong financials, there may be a specific type of credit line that is better suited to fit your needs and that of your business.