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There are many ways to protect yourself if you are seeking a commercial loan or a refinance loan.

First, do some research online about both a commercial loan and a refinance loan. Find out your mortgage options, and also check and copy your credit report so you will be more prepared to negotiate for your commercial or refinance loans.

You should interview several lending company’s and keep a journal of what terms they are offering for a new commercial loan or a refinance loan.

Always price the other property in the area, the price should be comparable. Hire a licensed qualified home inspector, and before you sign the contract on either a commercial or refinance loan, decide who will be responsible for any repairs, the buyer, or the seller.

Never lie on the loan application for any reason. Lying on a commercial or a refinance loan application is fraud and is a criminal offense.

Never borrow more money than you can afford to pay back, or that will make your payments larger than necessary. You do not want to end up loosing your property, and the equity in it.

When taking out a commercial loan, or a refinance loan, never sign a blank document. If while reading the contract, you put a cross through the blank spaces, someone cannot add information after you sign. You will be liable for any surprises they might add.

Do not sign anything you do not understand. Take your contract to a real estate professional or an attorney skilled in commercial or refinance loans.

Always, if buying a government home, state honestly your intention to occupy the home, or if you plan to fix it up to rent or resell. Your commercial loan may be turned down if they find you have not been truthful.

Some people get refinance loans to get a lower finance rate, and often borrow more money against the equity in their home. Some lenders may make this sound too good to seem possible. If so, it generally has some kind of catch.

Make sure a refinance loan to pay off bills or for home improvement is the best plan for you, and do not let yourself be talked into something you do not want to do. Some lending companies offer a very low financing option, only for you to learn later that there is a large balloon payment due at the end of the loan. They sometimes also add more finance, but put it into your payment to fool you.

Remember, there are many good, honest lenders that can help you with a commercial loan or a refinance loan. There are also dishonest people who will try to undermine you and trick you into financing more money than what you have planned. Stick to your original budget, and do not sign a contract if it is not exactly what was presented to you. This is a business where the representatives are paid by commission, so make sure you are trusting of this person. Asking friends or the Better Business Bureau is a good place to reference lending companies if they have had bad marks, or are considered a good business you can trust.

The author is the owner of http://www.business-floor.com – U.S.A local business directory.
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There is a tendency for people to think when bad news about the economy strikes the worst thing they could do is attempt to start a small business. This could not be farther from the truth. There is no such thing as a bad time to start a business, provided you go about it the right way. Check the news again. When large corporations are failing and looking for bailouts, small businesses keep on ticking. A small business owner that keeps a tight rein on operations and serves the public with products or services valuable enough to be taken in exchange for money will survive a bumpy ride.

Start Looking for a Lender Right Away

Any “grey beard” entrepreneur that has made it through the economic swings that seem to part of a natural cycle will tell you not to invest every personal cent you have in your business when starting out. You need to protect your personal assets and savings to take care of yourself and your family while you are building your business income. Nobody will stop you from investing some of your own money, but include acquiring a business loan as part of your start up strategy. There are some steps you will need to take to prepare for applying for a loan, and if you have already been rejected by the bank for a loan you have no choice but to pursuit another avenue.

Do your market research and be certain the product/service you are about to put on the market is viable. Survey everything you are planning to do and make the adjustments as necessary. Give the market what it is willing to pay to have. Make a very detailed business plan.

Choose the correct corporate structure for you business and register with the state. Get all your paper work in order and establish a proper bookkeeping system right off the bat. Find out exactly what your responsibilities are for paying taxes and retaining employees. Get your Employer Identification Number (EIN).

Register with Dun & Bradstreet (D&B) for the purpose of getting a Paydex score. Look for all the ways you can get accounts under your business name and out of your personal name. Set up vendor reporting with D&B. Eventually you will need to get your hands on a list of businesses that extend lines of credit to small business owners and use those to start building your business credit score. You can get as much as $35k through business credit. Get a credit card in your business name and use it wisely.

Money Available Regardless of the Economic Times

If you were expecting a magic formula to get an instant business loan, this is it. But it will take a little time. Depending on your diligence it could be a few weeks to a few months. No traditional banker or alternative lender will give you a loan with a decent interest rate without you doing these steps. You must build up your credit profile and business credit score first. It is the only way you can get money for your business that is not based on your personal credit and will not put your personal assets at risk. In the meantime you can use your business lines of credit from the list mentioned earlier to help get your business started.

Don’t wait. Start your business now. Get free information at Strong Business Credit for starting a business. Go to Inital Underwriting Group to get business credit & business loans.

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Does your current business need a facelift? You may need to purchase new, updated equipment, do remodeling, add an addition, purchasing new fixtures for your business. Maybe you wish to start offering new services that will require you to hire additional employees. Perhaps you need to retrain your current staff to offer new services. The time has come for you to take out a business loan to cover these expenses, but where do you turn now?

Online Business Loans

The answer may be only a mouse click away. There are quality, reputable lenders who do business exclusively online who are willing to invest in your business by loaning you money to help improve it. These lenders have established websites to make the application process possible in a convenient, hassle free environment.

To apply for your business loan, you will visit the lender’s website. You will be able to fill out a secure online application on the lender’s website that will ask for general information about your business, including revenue generated, projected sales, etc.

Securing Your Business Loan

You will most likely be asked to secure your business loan with something of value, such as your own home, real estate, business property, etc. If you were to forfeit on the loan for any reason, the lender can foreclose upon the security just as they could with any other type of loan. That means that regardless of the success (or lack of) that your business experiences, you will still be responsible for repaying your business loan.

Flexible Repayment Options

You can borrow any amount that you need for business purposes. Remember, you have different options for repayment. Some lenders may offer you regular monthly payments that range from one year to twenty years or longer.

When shopping for a business loan with monthly repayments, look for one that offers a fixed rate. That means that you will always pay the same amount of interest, regardless of the fluctuations of market rates that accompany the variable rate business loan. This is especially important if your business loan is for the long term (ten years or longer). This can save you tons of money over the life of the loan.

Other payment options that you may have offered to you at the time you take out your business loan may be a payment of interest only for so many years (example: ten years of interest only payments each month) followed by a final year of a balloon payment that will be the entire principle of the loan. That means that if you borrow $10,000 you would pay interest only on the money for ten years, with the final balloon payment of $10,000 due at the end of the term of the loan.

This option works well for businesses that will need more time to realize profit on their initial investment of $10,000 – which means that the interest only option doesn’t take away from the profit during the loan’s term. The balloon payment of the entire principle, however, is something that you should consider being able to afford at the end of the term.

Jessica Peterson is a Unsecured Personal Loan Consultant with more than twenty years of experience. For more information about Guaranteed Bad Credit Personal Loans, Guaranteed Credit Cards, Unsecured Loans, Fresh Start Loans, Debt Consolidation, Student Loans and others please visit http://www.yourloanservices.com

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How many times have you wished there were some sort of magic trick that would grant you instant approval on that loan you so badly need? Being denied over and over again is extremely frustrating and can really bring a person’s confidence down. And what is more, putting your credit through inquiry after inquiry only makes your score sink lower. But what is it that you are doing wrong? There must be something, otherwise, you would have been granted a loan by now.

Obtaining finance when you are a bad credit applicant is never easy, but it is not impossible either. Having a clear idea of your possibilities and a high self-confidence is key. Learn what you are doing wrong and what steps you can take towards a successful bad credit loan application. Here you will find some ideas on how to proceed prior to applying for a loan.

Sort Out Your Credit Report

There are many sites online which offer free credit report copies. It will be a good idea for you to get one of these and spend some time checking it out, making sure that everything which appears there is absolutely accurate. It is very easy to oversee mistakes as we always assume the inputs are 100% correct. Well, they do not always are. So make sure there are no errors which might be unfairly bringing your credit down.

Make A Budget

Knowing exactly what you earn monthly and what your usual expenditures are will give you a better idea of what you can afford to pay when it comes to loan installments. This will aid you in deciding which loan offers are better for you and which are just bad deals. It is very common for people to take out a loan which ends up being more than they can handle. If you know what you can pay for and what is simply out of your league, this will definitely not happen to you.

Improve Your Credit

Often, people wait until the last second to request a loan. This is just wrong. Making rushed decisions is exactly what you do not need. If you realize your financial situation is somewhat rocky, plan ahead. Provided that you see you will need the helping hand of a lender is the months to come, try to slowly improve your FICO score before submitting an application. Even if you only enhance it a bit, it is better than nothing. There are measures you can take: pay off any due bills, close unnecessary account, pay off credit card balances, etc. It will mean a sacrifice, but it will surely boost your chances of approval in the upcoming months.

Pay Lenders A Visit

Applying for loans online is an excellent idea and can save you loads of time. But sometimes taking the time to personally visit each lender, can increase your chances of approval. It will give the lender time to get to know the person behind the credit score and the credit report. You will have a chance to explain some of your negative report inputs face-to-face, and this is invaluable. I believe it can be really hard to swallow ones pride and admit that you made a mistake and that you need a second chance, but it will earn you the trust of the people around you. It is definitely worth the effort.

Hilary Bowman is the author of this article. She works successfully as a financial advisor with years of expertise on Bad Credit Loans. Hilary publishes informative articles about bad credit personal loans, home loans, credit cards, auto loans, business loans and others at http://www.fastguaranteedloans.com

It used to be pretty simple to get a business loan. Over the past decade or so it seems that the banks are more interested in making risky investments than taking a chance on small businesses. This is exactly why a merchant cash advance was created; to offer working capital quickly and easily, without having to risk all of their personal assents if things don’t work out as planned.

Merchant loans have been widely received by all kinds of small business owners from just about every imaginable type of business. They have grown from just a few million dollar industry to nearly a billion dollar a year industry in a very short time.

Now that nearly every business owner is eligible for funding; it levels the field on who can get funding and makes even the smallest business able to compete with the big boys. Everybody needs additional working capital now and then, and now everyone has equal access.

If you’ve tried to get a business loan from the bank and have been turned down; a merchant cash advance could be the perfect alternative. There are many advantages to this type of funding including;

* 24 hour approval
* 7 day funding
* No collateral
* Good credit is not necessary
* No fees or late charges
* Flexible payback structure

I invite anyone who is interested in obtaining working capital for their business to use the following link to learn more about a merchant cash advance.

Christopher Ronk writes articles about business loans and merchant cash advances for one of the leading providers in the USA http://easymerchantcashadvance.com.

Business lines of credit are perfect for financial needs in the short-term, like boosting cash flow, finding seasonal working capital, finding inventory, materials, and equipment, and funding accounts receivable. A secured business line of credit, and an unsecured line are the two types of lines of credit for business. Fundamentally, both kinds offer the same benefit for an entrepreneur – that of providing a spring of continually accessible credit which the business can utilize for operational purposes. Both, secured and unsecured lines of credit, can help businesses – up to a few million dollars for large corporations and up to a few thousand dollars for small businesses.

Most businesses prefer an unsecured business line of credit, since the conditions aren’t as stringent as those with secured business lines of credit. The owner of the enterprise must show to the bank some collateral, guarantees, or proof of personal possessions before they are granted use of the money through a secured line of credit. Extending a line of credit on an unsecured business loan is only likely to be approved according to the credit profile of the business and their ability to repay.

Lending institutions tend to grant more secured versus unsecured business lines of credit for the simple reason that the secured option allows them to disregard minutiae, such as how long the enterprise has been operational, a less-than-stellar business credit history, or uncertainty with set areas disturbing the business. These factors could scare off the lenders who think of such an enterprise as a higher risk in terms of pay back capabilities or meeting the terms of the business line of credit, and so they may be wary about funding an unsecured line of credit.

If you want to learn more about Business Credit & Building Corporate Credit, please visit the website.

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In the past getting a loan used to be a pretty intimidating process, getting dressed in your Sunday best, looking your best and venturing into town to the bank for a date with the Bank Manager. Once there you used to have to throw yourself at the mercy of the manager and plead for them to lend you money, getting declined for a loan was often a demoralising and embarrassing process.

These days applying for a loan is much more stress-free with the decision on whether you get given the money being based more on details such as your income, credit report and other factors, but still people can get turned down for reasons other than a poor credit record. In light of the recent credit crunch many banks are being more cautious about whom they lend money to and in some cases have ceased offering unsecured loans.

Luckily there is another option for those turned away, and no it isn’t visiting the local mafia! Peer to Peer Lending is a recent phenomenon in the lending business where organisations bring people looking to borrow money together with people who are willing to lend money. Companies such as Prosper, Zopa and Lending Club offer this service and have proved popular.

These personal loans are a bit of a hit and miss though with some lenders sticking to a high Interest rate in order to make their investment worthwhile, lenders are warned that the larger the amount they are willing to lend is, then the more risk they are putting themselves into. Obviously all loans from these services are not secured loans and so there is little equity for the lenders to be assured by.

Lenders are urged to check the site’s procedures for getting repayments as in some cases the lenders may default on their repayments and this is to be expected as the type of borrowers this scheme appeals to are mostly people who have been deemed high risk by the banks and refused conventional loans.

If you are struggling with debt and other expenses then maybe consider arranging personal loans for smaller amounts or if you need larger amounts and own property then consider secured loans as an option. As with all loans ensure you are able to make the repayments and consider the APR

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With any investment or loan there needs to be an interest rate charged. Lending Club uses a formula that takes into account several factors, but it really begins with the assigning of a loan grade.

The first step in getting any peer to peer loan on Lending Club is borrowers must apply for a loan. Upon this request, Lending Club begins to evaluate the potential borrowers’ credit standing. This information is taken and used to assign the borrower a loan grade. These grades range from A to G with A being the highest and G the lowest. To further narrow down grades, each letter grade has sub classes. These are numbered from 1 to 5 with 1 as the highest. These loan grades will then be used in every part of the Lending Clubs formula for calculating interest rates.

The formula is made up of two distinct parts. They are the based rate and the adjustment for risk and volatility. The sum of these equals the interest rate charged.

The base rate is the interest rate charged on every loan. For most peer to peer loans on Lending Club it is 9.05%, but can be different for the A grade loans. Grades A1, A2, and A3 get a base rate of 7.05%. A4 and A5 get a base rate of 8.05%. This lower rate represents the decreased risk for this category of borrower.

The second part, the adjustment for risk and volatility, is a bit more complex. It begins by using the grade assigned to calculate an “assumed default rate.” This assumed default rate is then doubled and is used as the adjustment for risk and volatility. This creates an interest that is increasingly proportionate to the default risk of the borrower.

To further explain lets calculate the interest rate on a peer to peer loan from Lending Club. If a borrower is assigned a loan grade of C3, the base rate is 9.05%. The assumed default rate calculated by Lending Club is 2.05%. This makes the adjustment for risk and volatility 4.10%. Now the base rate plus the adjustment for risk and volatility equals an interest rate of 13.15%.

Lending Club does reserve the right to change both the base rate and the adjustment for risk and volatility. This only applies to incoming loans not to preexisting ones. This flexibility allows Lending Club to adjust for the market conditions and ensures the loans stay attractive to both borrowers and investors.

These rates no matter how they are assigned are attractive to both borrowers and lenders. The rates are usually lower than several other options of funding for borrowers and lenders get a rate of return normally above 10%.

To read more about peer to peer lending visit Kyle’s website. There you will find excellent information about peer to peer loans

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The word is out that the new stimulus bill (American Recovery and Reinvestment Act of 2009) has a special provision creating a Federal government secondary market for SBA guaranteed loans. If you are a small business owner, will this loosen up my lender purse strings and allow some money to trickle down from the big cats on Wall Street and into your pockets? Yes, it is a good start, but hold your contagion because it is not as wildly exciting as you might think. In fact, some have openly criticized the new bill. This is a continuing article (20 in all) on the subject: Help. Is anyone out there loaning to small businesses anymore?

Let us first begin by looking at a program that is already in existence and is being sold on the secondary market. There is a loan program out there and SBA lenders are actually making loans currently: the Community Express Loan Program. This gives unsecured small business loans between $5,000 and $50,000 with very little paperwork, answers typically in two days, interest rates presently at 7.75%, funding and two weeks, and monies wired directly to your business account. There are still lenders participating in this program, although Congress has failed to make the program permanent and still has a 10% cap on the number of loans. Enter the Obama stimulus bill. Let us look how it affects this program and small business lending as a whole.

Some undiscerning headlines claim $3 billion in the stimulus bill is being pumped into the secondary market and viola, the banks will be making more loans. Not so fast. As this article explains, that money is being pumped into an elite SBA program that will not affect the average small business owner.

Before I give a clear answer, let’s define what we’re talking about. Most of us have heard about SBA loans. With the exception of disaster loans and the Microloan Program (for underserved communities), the Federal government through the U.S. Small Business Administration (SBA) does not actually loan the money. Instead, it licenses private lenders, like the community bank on your block, to make loans and if there is a default, Federal government guarantees come to the rescue and reimburse for a certain percentage. So, if you got a $100,000 loan (in this economy? OK, hypothetically) that has a 75% guarantee and there is a default, after going through certain steps, the lender could receive reimbursement for up to $75,000. And remember there are literally thousands of lenders out there that do SBA loans for the simple reason they feel warm and fuzzy with the guarantee.

Now here is how the secondary market works. In the good old days absent toxic reverse mortgages, banks held onto their loans and simply kept the in-house interest. But those days are long gone and banks now pool their loans and sell to investors on the secondary market which pays them a premium because of the expected enjoyment of future loan interest. They were packaged almost like mutual funds. Unfortunately, the secondary market is now a dry creek bed. I’m not handing out excuses for our banks, but this is one of the reasons they are not loaning.

But ask the average person on the street and a grimace creeps upon their face when they hear the name SBA loan: “Yeah, in whose lifetime? I would much prefer getting a loan while I’m still young.” Visions pop into their heads of pounds of paperwork, endless regulations, untold delays, and layers of government red tape. But not so fast. The SBA also has excellent smaller loans which are truly “lean and mean”.

So what does the new stimulus bill do? It got on an “A” for the idea but hardly passing with the follow through-it did not go nearly far enough. Under Section 503 of the new bill it has set up a secondary market for 504 loans only (to eliminate any confusion, the term “504″ refers to a section under the old Small Business Investment Act, and not the current stimulus bill) which applies primarily to larger ventures seeking commercial loans for buying land and buildings. A private lender works in conjunction with a government Certified Development Company. Typically, the private lender makes a loan for 50% of the cost under a first mortgage (not guaranteed by the SBA) with 40% loaned by the CDC in a second position (100% SBA guarantee). The other 10% would be cash by the borrower.

So, if you are a trucking company that has worked hard and increased your number of trucks from 5, to 10, to 15, and years later to 100, you need to buy a new yard and warehouse (for less than truckload jobs). Cost–$4 million. You get a bank to loan under the 504 Program as a first position commercial mortgage. The SBA now has the authority to set up a SBA Secondary Market Guarantee Authority and give guarantees for pools of 504 loans to be sold to third party investors on the secondary market. The lender has to retain at least a 5% interest at risk. The SBA loan guarantees not more than $3 billion of such pooled mortgages.

If you like to read fine print, here is the exact wording:

SEC. 503. ESTABLISHMENT OF SBA SECONDARY MARKET GUARANTEE AUTHORITY. (a) PURPOSE- The purpose of this section is to provide the Administrator with the authority to establish the SBA Secondary Market Guarantee Authority within the SBA to provide a Federal guarantee for pools of first lien 504 loans that are to be sold to third-party investors.
(b) DEFINITIONS- For purposes of this section:
(1) The term `Administrator’ means the Administrator of the Small Business Administration.
(2) The term `first lien position 504 loan’ means the first mortgage position, non-federally guaranteed loans made by private sector lenders made under title V of the Small Business Investment Act.

And further:

(2) GUARANTEE PROCESS-
(A) The Administrator shall establish, by rule, a process in which private sector entities may apply to the Administration for a Federal guarantee on pools of first lien position 504 loans that are to be sold to third-party investors.

But there is a catch. In another article I stated the SBA is doing away with the borrower paying a loan guarantee fee, which can be thousands of dollars for larger loans. Unfortunately, for the secondary market on 504 loans, the SBA will charge a fee. Currently, these loans did not have an SBA guarantee:

(3) RESPONSIBILITIES-
(A) The Administrator shall establish, by rule, a process in which private sector entities may apply to the SBA for a Federal guarantee on pools of first lien position 504 loans that are to be sold to third-party investors.
(B) The rule under this section shall provide for a process for the Administrator to consider and make decisions regarding whether to extend a Federal guarantee referred to in clause (i). Such rule shall also provide that:
(ii) The Administrator shall charge fees, upfront or annual, at a specified percentage of the loan amount that is at such a rate that the cost of the program under the Federal Credit Reform Act of 1990 (title V of the Congressional Budget and Impoundment Control Act of 1974; 2 U.S.C. 661) shall be equal to zero.

This secondary market program set up by the SBA will only last for two years under section 503 (f). Because this is emergency legislation, the SBA is to issue regulations within 15 days of the signing of the bill (503 (i)); amazingly quick for government purposes.

What about the secondary market on other loans? The typical everyday medium to large SBA loan is under the workhorse 7(a) program. For example, using the same trucking company, if they needed money to purchase more trucks, hire employees, or for general cash flow, they would seek a 7 (a) loan. The stimulus bill does not set up a new secondary market for 7(a) loans. But it does allow direct government loans (not made by private banks) to broker-dealers in the secondary market purchasing 7(a) loans. So if you are in the business of buying pooled 7 (a) loans and need a loan to do so, taxpayers monies will be used for this purpose. The idea is to stimulate this secondary market again so banks will make further loans.

But what about the small guy? here the news is very disappointing. Studies show the average small businesses loan is $10,000. None of the stimulus programs helps the secondary market on the smaller loans and so few lenders are loaning.

But do not give up hope. There are still lenders out there, including those lending their own money, that are still making loans in the range of $5,000 to $50,000 unsecured at good rates, in the neighborhood of 7.75%. You just have to know where to look.

Sue Malone
442 Diablo Road, Suite 137
Danville, CA 94526
Email: info@StrategiesForSmallBusiness.com

Sue Malone is a small business advocate and founder of Strategies For Small Business, a company devoted to providing SBA Loans for small business owners, whether as start-ups or for the expansion needs of existing businesses. For six years she has been the nations #1 provider of SBA Community Express Loans, having funded over 25,000 businesses in all 50 states. For a free loan consultation or for more information on the programs, visit our website at: http://www.StrategiesForSmallBusiness.com. Or call (925) 899-8449.

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