Collateral Problem Solved by a Commercial Line of Credit

We had a client that was turned down by several banks. The problem was they were asking for the wrong type of loan for their needs. They believed their strongest asset was the real estate where the business was located. It was free and clear and the appraisal was strong. So what was the problem? The environmental report was damaging. The business was built on a former landfill. In addition, they were going to banks and real estate brokers who had packaged the loan as a real estate loan.

How did we solve the problem and get them viable offers from the right lender?

After several probing questions we uncovered the real strength of the business. Here’s how. The business had two separate operating entities. One was the landlord for several other businesses. The other entity was a market with a very strong cash flow and parking lot that was always packed with plenty of foot-traffic and a strong credit history.

We repackaged the loan request for a commercial line of credit using the historical financials as the primary security for the loan. A lender wants to know how their risk is off-set, so we identified the right lender and showed them how there was little risk because of the nature of the business, the strong loyal customer base and consistent positive cash flow.

By shifting the focus of the loan to the cash flow of the borrower rather than the real estate, we were able to secure a $2 million dollar commercial line of credit for our client.

In fact, the line of credit worked out better for the client than a real estate loan. The line of credit (LOC) can be used when needed and there’s no interest on any portion that you don’t take. But the real issue here is that you can save yourself a lot of time and wasted energy by asking for the right type of loan for your individual situation. If you’re not sure what type of loan(s) will be best for you, call us for a free consultation.

A Commercial Line of Credit offers a business a great amount of flexibility.

You can use a line of credit for the following solutions:

• Fund seasonal changes in inventory and receivables.
• Take advantage of vendor discounts.
• Meet unexpected cash needs.

You can also contact us to ask questions and voice your concerns. Just pick up the phone and dial, CFIC Funding, Inc. today at 310-370-4871! Ask for David Young or Wayne Clinton. You can also visit http://www.cficfunding.com or mail david@cficfunding.com or wayne@cficfunding.com

How to Get Money for Business Success

Many business executives and owners pose a simple question: How can I get money? We need working capital. We need to upgrade our equipment. We need a line of credit. Where can I get money?

Getting your business financed is arguably one of the most important steps needed for success. Yet very few business owners really understand how lenders, underwriters and loan committees make decisions. Like many businesses, yours may be faced with the challenge of needing to raise funds or you’ll limit growth and miss profit opportunities.

So off you run to your bank and “ask” for a loan… only to be faced with the less than favorable response. Asking soon becomes one frustration after another and then many simply give up. Sound familiar?

Well don’t give up… there is more than just hope… success may be only one strategy around the corner. That’s where this blog proves to help. It will show you where to get money. It will show you how to get money. There are very common mistakes, misconceptions and misunderstandings in getting approved and successfully funded that we’ll help you avoid.

Once you know how to ask to get money, where to ask to get money and who to ask to get money… you’ll find that success can be as simple as
‘painting by the numbers’!

In this blog you’ll discover priceless knowledge in business financing that even most bankers, CPA’s, attorneys and loan brokers don’t know or won’t tell you.  Why is that? The answer is in specialization.

Bankers specialize in the lending appetite of their employer who may have little to do with your specific money needs. Attorney’s specialize in legal aspects of loan contracts but may not have all the answers that you need to acquire funds for your business. CPA’s specialize in financial reports and tax issues, but just like the attorneys, they share the same disadvantage of not fully understanding how to get you across the financial finish line. Loan brokers often specialize in a particular type of loan, such as real estate or SBA financing and may look at your loan through the wrong “set of glasses.”

You’ll Learn How to Think Like a Lender and Get Money…

What if you could be a fly on the wall during a ‘loan committee’ meeting concerning your loan request? Better yet, what if you could set the stage in your favor? It’s not only possible, but highly probable once you know the strategy.

The good news is… you’re not stranded! This blog is your compass and will help you cut straight through the red tape to find your way to securing business loans from banks and private lenders alike.

Most traditional lending sources only offer programs focused on particular industries and certain sized business that they’re comfortable with, which may not match the needs of your business or project. On the other hand, there are virtually dozens of viable programs and hundreds of funding sources worldwide that are compatible with your needs. Most importantly, what this means to you is, you can now access the best programs and sources of cash for your specific money needs!

We’ll be covering the following types of loans and how your best strategy may ultimately be a combination of these loans that most appropriately fits your business:

• 100% Financing
• Contract Financing
• Project Financing
• Acquisition-Funding
• Start-up Loans
• Inventory Loans
• Accounts Receivable Loans
• Factoring
• Purchase Order Financing
• Working Capital Loans
• Agricultural Loans
• Equipment Leasing
• Loans using equipment as collateral
• Commercial Property Loans
• Unsecured Borrowing
• Business Lines of Credit
• Warehouse Financing
• Machinery Loans
• Flooring Lines
• International Loans
• Real Estate Development Loans
• Construction Financing
• Virtually ANY Type of Business Loan

There are sources of cash ready to handle any type of legitimate business loan or lease you need. However, most business owners don’t know who they are or what to send them.

This blog is where you learn….

If you need help, ask for it. Visit us tomorrow for another free commercial loan secret and be sure to subscribe to our RSS feed.

When you ask the question: How can I get money? You can contact us to ask questions, we’ll advise you how and address your concerns. Just pick up the phone and dial, CFIC Funding, Inc. It’s where to get money. Call us today at 310-421-7370!  Ask for David Young or Wayne Clinton. You can also visit http://www.cficfunding.com or mail david@cficfunding.com or wayne@cficfunding.com

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