Tag Archives: Loan

Commercial Loan Rates

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Commercial Loan Rates

Does The Loan Make Sense?

Commercial and small business loans must make sense for the lender and the borrower. Lenders like to see that you are a excellent credit risk and they will be able to recover their investment. Sometimes, if you are a new business or operate in a risky business sector that will be reflected in the loan offers you receive. You may be offered a higher rate to offset the risk you pose to your lender. On the other hand, it is often much simpler to obtain small business or commercial financing than it is to get a residential loan. Lenders make decisions based on your loan package, or loan application. They review the information to determine whether lending you money makes sense financially.

Commercial And Small Business Interest Rates

Commercial and small business financing is available from many different sources. You could utilize a finance company, a domestic bank, an international bank, a large institution, or small. Do your homework, know exactly what you need and why you need it and you will increase your chances of working with a lender that can offer you the right loan for you commercial and small business needs.
Remember that commercial rates and terms will vary based on region, the strength of a company and the value of its assets. Foreign banks tend to offer the lowest interest rates, while small domestic banks usually offer higher rates. 
Here are some average commercial and small business interest rates:

Average Interest Rates (varies based on LTV, DSCR, loan amount, overall loan quality, etc.): 

Office: 5.65% – 8.50%
Retail: 5.75% – 8.85%
Industrial: 5.75% – 8.75%
Multifamily: 5.25% – 7.35%
Mobile Home Park: 5.50% – 8.70%
Hotel/Motel: 6.25% – 12.0%
Healthcare: 6.65% – 10.15%
Self Storage: 5.90% – 8.55%
Mixed Use: 6.70% – 12.5%

What Else Do I Need To Know?

There are many details you will need to be aware of as you search for commercial and small business financing. The following tips should get you started on the right path.

• Question about the average maturity or interval between rate adjustments. Usually a longer maturity is preferable, especially when rates are going up, as it brings steadiness to your organization’s financial plotting. Recently, small domestic banks offered small business and commercial loans with the longest maturity. Foreign-based banks offered loans where the maturities were shortest.

• Question your lender about ‘call provisions’ in your loan. A call provision enables your lender to ‘call’ your loan due if you fail to uphold your end of the agreement. Many small businesses look for non-callable loans. Most commercial loans do not include this provision; but, foreign-based banks are nearly twice as likely to require this provision as a condition of your commercial loan.

• Question your lender if your small business or commercial loan includes a pre-payment rider. This is a loan provision that requires you to pay a fee if you pay off your loan early. Sometimes your lender will remove it, or, offer you alternative loan options that do not include a pre-payment penalty.

Click here to Learn more about commercial Mortgages and Small Business Loans.

Harris & Associates of New York, Inc. is an International small business & commercial lender. This direct lending company serves the USA, UK, Canada and limited regions of the Caribbean. Headquarters are located in New York, NY.

History 
Harris & Associates of New York, Inc. was founded in 2005.

Loan Types
Harris & Associates of New York, Inc. offers many varied commercial & small business loans

Commercial Loan Broker Training

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Commercial Loan Broker Training

There was a lot about how to calculate the debt on investment and owner occupied transactions written. One of the most hard to reach the DCR calculation of all tax returns and the income of each borrower.

http://www.loanscom.equitylinesite.com/2009/11/28/commercial-loan-broker-training/

Tax returns can be very complicated, very quickly. Take the typical face owner occ. Did you tax corporate income tax, the real return on the ownership of the company and personal tax returns of the debtor. The three are related, but differentComponents of tax shelters in each of them.

In addition, there are areas where costs have been reported twice. Of course, this could also reduce the income to fake.

Take, for example, are given for the costs of cars on the statements of the company and the report of the solvency of the debtor. It is often the case that the identification of some components of income, partly as a loan closing or fall.

Some of the key elements of the prosecutors to give special attention toare: interest amortization, depletion, use of the task, depreciation, among others.

Depreciation is an accounting method for reducing the value of an asset during its useful life, to take into account, as used for the deduction of income taxes. Of course this is a non-monetary costs and can be added to reflect the actual cash flows of the company or the construction account.

The reduction is most commonly used in mining, timber, oil or other similar industries.

The deduction for depletion allows an owner or operator for the reduction of stocks considered a product. Ozone is much like depreciation, that a system of cost recovery for the accounting and tax returns and other expenses in cash, do not. Depends on the net profit of this company may be added.

Interest expense for refinancing, often refers to the interest paid on loans will be refinanced. Therefore, this cost is included in calculating the DCR. New> Ready to replace the debt.

Commercial use of housing is another of the small details that can help the cash flow “close” transactions. The owners of companies can be from 40% of their expenses brought home if you have a home office. This position is often referred to their personal credit file, and then reckon about the preparation of the complaint.

Depreciation: The principle on an existing loan to pay. Is often separated from the component of interest for tax purposeswell. Often, you can add as income when they refinanced a loan repayment schedule.

http://www.loanscom.equitylinesite.com/2009/11/28/commercial-loan-broker-training/

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Merchant Loan Or SBA Loan?

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Merchant Loan Or SBA Loan?

The recession has sent many small business owners on a rollercoaster ride when it comes to securing funds for their businesses. First, in 2008, small business owners saw bank lending standards tighten dramatically, making it nearly impossible to get a bank business loan.

Recently, laws were passed to regulate consumer credit providers, in attempt to decrease consumer debt. Unfortunately, many credit card companies raised rates on business credit cards to compensate. As a result, some merchants were forced to close their credit cards while others had their lines of credit taken away from them.

During this financially turbulent time, merchant loans have always been available for small business owners who operate retail and/or service-oriented businesses. But, recently, the Small Business Administration has introduced a new loan program and made some changes to an existing loan program, in order to make it simpler for merchants to gain access to business funds.

Small business owners must now choose which method(s) best suit their businesses.

One new program that the SBA has introduced is the ARC loan program (America’s Recovery Capital), in which struggling small businesses can receive up to $ 35,000 to be used to pay off existing debt. The SBA has also revised its 504 loan program, previously only allotted to small business owners who “…sought new loans to buy real estate, upgrade machinery and make improvements,” (Wall Street Journal). Now, the loans may be used by borrowers who want to “…refinance their existing SBA-backed loans as long as the amount is 50% or less than the total cost of expansion,” (Wall Street Journal).

Merchant loans, but, allow business owners the opportunity to receive up to $ 500,000 in simple, unsecured business funds.

These funds are suitable for merchants who’ve owned their businesses for at least six months and process at least $ 3,500 in monthly credit card sales. The advance is then repaid via a small percentage that is deducted from the business’s daily credit card sales.

Merchants can visit the SBA website to learn more about these loans and determine if they are a excellent fit for their businesses. Merchants can also visit merchant loan websites to get a free quote and to learn more about them and whether they would work best for their businesses.

Gaston C. writes articles about Merchant Loans for Merchant Resources International.