Get Ready to Get Money!

When you are sourcing money for your business, whether it be for purchase of real estate, equipment, or expanding operations, your odds of success increase dramatically when you have the necessary documentation ready.

The minimum documentation that we recommend having ready to go:

  1. Summary of borrower’s experience and why you want the loan
  2. Personal Financial Statement
  3. Current FICO score
  4. Current Income Statement, Balance Sheet & Debt Schedule
  5. 6 months of bank statements
  6. 3 years of tax returns

Additional documents may be required by the lender, however having these on hand will help speed up the process.

Make the application process a smooth one and you are much more likely to get the money you need, when you need it!

How to Get Approved for Hotel Financing

If you are ready to take steps to be a hotel or resort owner, there are some things to know that can help you start your establishment successfully. Your first challenge in this industry may be to secure the funding that is necessary to have your hotel come together.

To improve your chances of getting the right financing, start with a lucrative location, consider franchise options and showcase your industry experience.

Choose a Lucrative Location

One of the things that can truly determine your success in this business is your location. A hotel’s revenue depends on the economic climate of its setting. The best places to open lodging are in large cities where tourism is strong. If your lender is on board with the place where your hotel may be located, then you could have a higher chance of getting approved.

Consider Opening a Franchise

One smart way to get an instant customer base is to consider opening a franchise of a recognized national hotel brand. A lender may appreciate a business plan that is centered on a well-known hotel concept.

Showcase Your Background

If your job experience includes many years of managing hotel and resort properties, the lender may feel more confident in your ability to operate a successful hospitality business. Individuals who have other types of management or successful business experience may also benefit from sharing this background information on their loan application.

Hotel financing can be secured for a new business if you know what to do during the application process. Hope these tips help!

Owner Occupied Commercial Real Estate - right for your business?

If you’re a business owner, you likely understand the benefits of renting rather than owning a property. However, a time can arrive when the restrictions of being a renter can hurt your prospects for expanding your operation, or perhaps you simply want greater control over your property. If this is the case, you could consider investing in owner occupied commercial real estate, or OOCRE. Investing in an OOCRE can provide you with important financial and material benefits for your business.

Among the benefits of OOCRE is that your company will have greater control over occupancy costs, including maintenance decisions and installation of utilities. An OOCRE also grants you control over parking rights. Furthermore, you can expand your building without running up against your landlord’s restrictions.

Having an OOCRE can allow you to become a landlord yourself, provided your business occupies at least 51 percent of your own building. Now you can lease your own property out to other parties and control who becomes a tenant. If you invest in your own commercial property, the property could produce a return that boosts your business capital.

Financial lenders view owner occupied commercial real estate as lower risk and are more likely to approve such loans. Since the buyer is going to be the building’s main occupant, the lender knows the buyer is going to be fully engaged with the property to make it work financially. Also, if the buyer is part of a company that is known to be profitable and has a steady cash flow, the lender’s risks are further reduced.

Other benefits of OOCRE include tax reductions, more favorable interest rates, a smaller down payment, and longer term fixed interest rates. Examine your current balance sheet to determine how these benefits may help your bottom line.

Why Small Businesses Benefit From Leasing Manufacturing Equipment

Small businesses benefit from leasing manufacturing equipment

for multiple reasons including the low initial cost of obtaining the equipment, the opportunity to continually update equipment, lease payments being 100% deductible on your tax returns, and the fact that it will not negatively affect cash flow. If you own a small business, leasing will tremendously benefit your company in more ways than one.

Low Initial Cost

The low initial cost of obtaining the equipment is a major advantage because it allows for immediate use of the equipment without sacrificing a massive sum of cash. Often times, small businesses do not have the necessary funds to purchase expensive pieces of equipment. Leasing provides the opportunity to have the same equipment as other similar businesses without paying a lot of money initially. This is also useful for new businesses as equipment can be one of the largest expenses in opening a business.

Technological Obsolesce

Additionally, it eliminates the issue of technological obsolesce. Keeping up with or staying ahead of the competition can be difficult for small businesses, but leasing manufacturing equipment makes this a lot easier to do. Once the lease is up, you can switch to better, faster, more efficient and advanced equipment. This is something that would not be possible if you bought each piece of equipment. This could potentially lead to debt which could put a small business out of business.

100% Deductible and Cash Flow Benefits

Small business also benefit from leasing because if you have a straight operating lease, the lease payments are often 100% deductible on your corporate tax return in the year they are paid. This can be an advantage because it decreases the net cost of the lease. Leases are also easier to obtain and it is easier to negotiate payment schedules. This will benefit your cash flow and result in your small business becoming more profitable. It is also helpful if you are expecting to go through a financially tough time and believe you will need more time to pay off a lease.

There are countless benefits of leasing manufacturing equipment for small businesses and hopefully the above information will help you determine what is the best option for your business.