Your Options Can Spell Success For Your Business

Several years ago we got a call from a very nice lady with an unusual business and type of property. She was at her wits end because she had a history of profitability, good equity and other real estate for cross-collateralization purposes but couldn’t find any lenders willing to provide the growth capital she wanted. All the lenders she contacted said that her property type was not one they financed.

What kind of property did she have? It was a multi use property that consisted of a strip mall with a bridal and tux shop, real estate office and one of the areas more popular banquet halls. We’re talking about a 9600 square foot building with a 3000 square foot dance floor, private dressing rooms, full kitchen, huge bandstand, full bar and liquor license. The problem was, there wasn’t any traditional rental income, as the borrower owned all of the businesses in the strip mall.

All this and none of the local banks she approached would give her a dime. After we looked at her appraisal and tax returns, we called the chief lending officer at our favorite bank. He agreed that she was deserving of the loan she wanted, but knew that the other members of his loan committee would have a problem with the property type. So he referred us to a private lender in her area that he bought seasoned loan packages from in the secondary market.

Once we compiled and shared the right information with this private lender, he was happy to make sure that our client got all the financing she wanted with rates and terms competitive with any bank. Further proof that even if one lender turns you down, there are others that will work with you.

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

You can also contact us to ask questions and voice your concerns. Just pick up the phone and dial, CFIC Funding, Inc. today at 310-421-7370! Ask for David Young or Wayne Clinton. You can also visit http://www.cficfunding.com or mail david@cficfunding.com or wayne@cficfunding.com

Project Financing–Lenders Want to Finance Your Business

Did you know that there are lenders even in today’s market who are not only looking for businesses and projects to finance… they are actually eager to do so? So how do you position your company to be one of them? Keep reading.

Pull up a front row seat and listen in. Today we were talking with the Managing Director of the Private Equity Group we work with. He made the comment: “It’s very difficult to find developers that can do what they claim they can.” It was very similar to what the president of an Equipment Leasing firm said recently.

Think about that for a moment.

These legitimate and capable lenders are actively looking for more businesses and projects to finance. These are sources of capital that get loan and funding requests daily. Many are from sound business concerns with good ideas. But they’re not getting the necessary documentation to support the loan requests they receive. Consequently, they can’t fund as much business as they’d like.

What are they not getting that prevents them from funding the loan? It can be many things. It can be unsigned equipment orders, not getting the right permits and/or licenses, not providing signed purchase contracts or orders from your customers. Many times it comes down to not providing something as simple as a tax return. Often it’s not being clear with how you plan to use the loan proceeds.

If you want money to grow and develop your business, whether it’s $50,000 or $500 million, you have to forecast and plan each step of the way to make sure you have covered all eventualities. Make sure all your orders, contracts, quotes, permits and licenses are fully dated and signed before you send them to your lender or investor.

Be sure to provide a clear step-by-step description of how you see the transaction taking place. If your lender has already stated how it should go, say it again so the lender knows you understand. This is very important, as the lender will be more comfortable in working with a borrower that qualifies and understands his process and procedures.

Let there be no doubt, all lenders would love for the deal to come together and fund smoothly. Just like you. So, be thorough and make sure you give them what they need the first time.

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

You can also contact us to ask questions and voice your concerns. Just pick up the phone and dial, CFIC Funding, Inc. today at 310-421-7370! Ask for David Young or Wayne Clinton. You can also visit http://www.cficfunding.com or mail david@cficfunding.com or wayne@cficfunding.com