Business Loans

As has been one of the common themes through our article discussions, banks and finance companies love to provide business loans that are secured by tangible goods such as equipment and real estate. This is, again, because in the event of a credit default they will be able to recoup a majority of their principal by taking possession of the secured property with the intent to resell it. In regards to equipment business loans, there are a number of different avenues that you can take in order to acquire the equipment that you need for your business. In many instances, the equipment seller or manufacturer will have a number of lenders that they can refer you to when you are looking for business loan specifically for equipment purchases. Major corporations and manufacturers often have their own in house financing programs that you can apply for when purchasing large scale equipment. This is especially true for machinery that costs in excess of $25,000.

Equipment loans, as compared to traditional loans, are much easier to obtain as there is fully security for the lending party for the equipment they are providing to you. As an alternative to equipment loans – there is the equipment lease. Much like a business loan, you will be required to submit a formal application and you may be required to present a business plan. However, full title for the equipment (should you decide to lease it) remains with the finance company or manufacturer that is providing you with the equipment. Additionally, the full cost of the lease is generally deductible for tax and accounting purposes. This is because you are not purchasing the equipment. In a lease situation, you are paying for the depreciation of the equipment plus an interest rate tied to the depreciation of the equipment.

Hard money loans used to be seen as high interest emergency type loans. Not true these days. Some commercial lenders are able to beat most U.S. bank rates by utilizing foreign monies. This allows the interest rate to be determined by the LIBOR which always produces a lower interest rate to start.

As a borrower, you should take advantage of these trying times and contact your commercial lender. Small business loans and equipment loans are quite easy to obtain these days despite what you may think. Commercial lending rules are a lot different than residential; you may be surprised at the great deals you can get.

If you are looking for a business loan try to deal with a consultant. You need an experienced relationship manager that will work closely with your company as your advocate in raising the capital you need. That consultant should learn your organization, industry, and unique financial needs to deliver creative yet sound solutions from a wide range of financing alternatives.

Some types of commercial financing that are readily available are the following:

Lines of Credit
Purchasing new equipment, finance working capital, small or large purchases. You should strive for flexible terms and competitive rates.

Letters of Credit
Facilitates trade and reduces risk for exporters, importers, and among any new or unfamiliar business partners. Sometimes a revolving line of credit makes more sense than a lump-sum loan, when deciding whether to purchase necessary items, pay for improvements, or manage cash flow. It allows you access to a revolving line of credit with flexible repayment terms and options.

Real Estate Loans
Apartment Buildings
Office Buildings
Retail Shopping Centers
Industrial Warehouse Properties
Mixed Use Properties
Corporate Financing

Asset Based Lending
A non-traditional way for asset intensive companies to increase borrowing capacity.

Government Contract Finance
Delivering a full array of financial solutions to companies who perform technical services or manufacturing for any government.

Equipment Financing
This would include manufacturing, transportation, heavy equipment, yacht and corporate aircraft financing.

When looking for a business or commercial loan it is always best to deal with one consultant rather than several brokers or agents. This will save you substantial money and fees in the long run.

The bottom line is thing are looking up in the commercial finance industry. Take advantage of all of the programs available.

Author: Darlene McDonald
Article Source: EzineArticles.com
Provided by: US Dollar credit card