Donald Hunter™ Financial » Commercial Business Loans

Don’t Get Chewed Up In the Commercial Loan Grinder

Donald Hunter, MBA, Broker, Certified Financial Planner — Thu, 04 Nov 2010 17:13:03 +0000

If you’ve ever gotten chewed up by a bad commercial loan and you want to avoid the bloody nightmare from getting into a toxic loan, then you want to slurp up every word in this article that lays down the 3 steps to ensure you stay out of boiling hot water from the start.

It’s important to know what the top dangers are today when going for financing because you don’t want to be turned into lean ground beef by any commercial lender traps.

Like during the real estate boom and bust of the last decade, lenders still structure loan programs which help them make huge profits while you take all the risk.

3 commercial Lender commercial loan traps

Here’re 3 critical steps you need to carefully think through so you avoid the meat grinder to make sure you get a good business loan or commercial mortgage loan.

1. Make sure your lender is an expert. Don’t get fooled by big brand names and fancy buildings. Loan officers who ware expensive Suits and drive tasty foreign cars need you to pay for all of that high priced stuff. You don’t need them.

You shouldn’t work with a green loan officer who doesn’t really understand your business and how to structure your loan terms which fit your unique situation now and in the future. You’ve learned that you’ve got to think past this month before you get a loan because it may be 5 years down the road when it matters. It’s been proven that well known brand names and fancy buildings don’t guarantee banks and commercial loan companies are looking out for your best interests.

2. Select a commercial lender who’s not going to shoot you down and shove you out the door if something about your credit history, business performance, or customer base isn’t perfect. You need a lender who will work with you to iron out any thing which could pop-up and get you on your way to getting your commercial loan for your business or commercial property.

3. You want a lender who won’t stretch out the loan process for the next 6 months because this means they’ll be chewing up more and more of your time during business hours to get them more paperwork or tying you up with filling out pages and pages of forms. Time equals money.

Usually this will be a commercial lender who doesn’t know how to service a company like yours and your unique needs. What this can mean is they’re guessing about how to put your loan request together otherwise it would fly straight through the loan approval committee.

If you’d like to avoid the meat grinder and work with a lender who can get your commercial loan absolutely, exactly right the first time without draining all your mental energy and precious time, call or email me to start the process. In 15 minutes I’ll ask you straightforward questions to get clear about what you want, I’ll tell you what I need from you, how long it’ll take to get your loan in place, and the date you will have the funds. We’ll work together to iron out any negative thing which might pop-up.

You’ll be able to get back to doing what you do best because I’ll do what I do best and that’s getting you financing to meet your specific needs.

Get my Financing Strategies Report.

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Could Money Help Your Small Business In The Recovery?

Donald Hunter, MBA, Broker, Certified Financial Planner — Wed, 07 Oct 2009 01:38:18 +0000

In the midst of the heart wrenching news for the unemployed in the current economy, there are plenty of small businesses with huge opportunities for growth. Unfortunately, these opportunities are not broad enough to help the unemployed in all sectors, and won’t be, until we see several sustained quarters of GDP growth. When the broader economic pendulum swings in a more positive direction, then we will have increasing job opportunities for those looking for work.

At Donald Hunter™ Financial, we focus on the possibilities available for your small business in your local market despite the current financial state of our country.

What we offer:

Business acquisition loans.
Business line of credit (working capital)
Commercial loans for real estate (purchase and refinance)
Equipment financing
Inventory financing
SBA loans

We encourage you to see the glass as half full rather than half empty. We want to help you with your financing needs; it just needs to make sense given what’s going on in your local economy.

Contrary to the bullish expectations in Wall Street, consumer attitudes fell by more than one point in September after rising in August. The increase in August can partly be attributed to reports of the recession coming to an end and the “cash for clunkers” program. Federal Reserve Chairman Ben Bernanke said in early September that the recession is very likely over at this point. Yet, he warned that the economy might continue to feel weak to consumers for some time as people adjust. Are you one of those companies that are experiencing growth in the midst of lagging economic indicators? Are you still hiring even though unemployment is rising and consumer confidence is decreasing?

During this economic crisis many businesses have cut back on their inventories to guard against being stuck with unsold merchandise. Manufacturers slashed production outputs to record lows. Now that the economy seems to be finding a bottom, production is expected to ramp up to restock those depleted inventories. Businesses are also increasing their investments in equipment such as computers.

According to David Roche, global strategist at Independent Strategy Limited, strong business investment won’t be sustained until it’s clear there is strong consumer demand for more goods and services. What he doesn’t say is that it’s all about “location, location, location.” Another point he doesn’t say is your competition may be far weaker than you, so your access to money is crucial in grabbing market share!

It is very important to keep the broader economy in perspective, but your business may be shielded from their effects. You may consider purchasing your competition to strengthen your business for the future. Purchasing the building you currently lease could also be another excellent opportunity while interest rates are low and commercial real estate is at bargain prices.

With our finance expertise at Donald Hunter™ we help you take advantage of local market trends despite the global economic melt down.

Will your business benefit from Federal spending?  This is a huge question you must get answered quickly so that you position your business financing appropriately for growth.

Uncle Sam has issued the biggest spending programs in history, roughly $1.5 trillion in less than a year. A separate alphabet soup of money transfers from the Federal Reserve added another $1 trillion, much of it to guarantee loans and buy up bad investments from banks that couldn’t sell them, freeing up cash for them to lend. You may have some concerns about a commercial loan that’s coming due or you may already be in default or in foreclosure. Donald Hunter™ can help you understand your refinance options to avoid losing your commercial property. SBA loans are available to refinance loans coming due.

The government’s strategy seems to have worked, and much of the planned direct government spending is still in the pipeline. The hope is all that federal spending gets the gears of the economy turning again with enough momentum that as the federal spending spigot starts to slow down, other sectors of the economy will take up the slack.

Program pitfalls:

Are you protecting your business against possible inflation? You may want to purchase inventory before the end of the year to get tax benefits and to stock up on inventory before prices increase. A business line of credit can help you purchase inventory and equipment. It will allow you to hire employees and get them trained to ramp-up your staff before the phones start ringing, orders begin to come in, and the services need to be delivered.
At some point, the Federal Reserve will have to unwind its trillion-dollar infusion of cash or risk igniting another asset bubble or nasty round of inflation.
If it unwinds too quickly, it risks setting off another panic in the financial markets.
If it leaves its policy in place too long, bankers will assume they can keep making risky loans and sell them to the Fed if they go bad.
The government’s direct spending is being funded entirely with borrowed money. If investors stop buying up the debt, that could force interest rates higher, creating a big problem for businesses and consumers who need to borrow money later.

Which is why the time to start funding is now.

I want to make investing in commercial niches simple for you. To get more involved in what’s happening right now with commercial real estate and how to profit from “HOT” business niches, you should sign-up for our free webinar on “Wealth In Commercial Niches ASAP”.

OH! BTW guys if you haven’t signed up for a free consultation it’s time to take advantage of it now because I don’t know how long it’s going to be available. So go ahead and signup now before it’s gone.

Also get my Business Survival Report it’s absolutely FREE! There’s no catch whatsoever this is just a way for me to give back and help small businesses in these tough times. Here’s the link to my Free Business Survival Report again.

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Verifying Your Income for Commercial Business Loans

Donald Hunter, MBA, Broker, Certified Financial Planner — Tue, 29 Sep 2009 15:08:27 +0000

Let’s take a brief look at the differences between commercial loan requests from business owners and investor loans.

Business Owners

One of the more involved requests Donald Hunter™ Financial makes is for your Business Tax Returns. This is typical when we finance owner-user business line of credit or commercial loans since your business will be listed as a guarantor of the loan.

Three years of returns are usually required so that your Business Financing Expert can confirm positive trends in your business. If you own at least a 20% share of other businesses, then the tax returns of those companies may be required to see their effect on your ability to repay your new commercial loan.

Donald Hunter™ prefers enterprises that produce cash rather than ones that only have cash going into them!

Be aware that Donald Hunter™ most likely will base his debt service calculations on the most current tax year, not on the interim statement (unless it is audited).

Investors

For investment property, when a borrower is self-employed or owns at least 20% of a business entity, Donald Hunter™ will request your business tax returns. The business is typically your chief source of income even if you have a large collection of performing properties. Analyzing the cash flow of a large portfolio requires much more.

Our goal is to help you succeed and prevent getting you in a bad situation by placing you into a commercial loan that may sink your business in the future or jeopardize your investment portfolio. Remember that when we request proper documentation from you, is because we want to help you complete your financial picture to verify your ability to afford the new commercial loan.

Donald Hunter

Business Financing Expert

www.DonaldHunterFinancial.com

866-323-9123

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