How to Enhance the Likelihood That Your Commercial Loan Modification Application Will Get Approved
Due to the the economic downtrend, the commercial loan modification is an option that property owners may want to consider if they are having problems coming up with the monthly payments for the commercial mortgages. Some companies that own such real estate properties may also consider asking for an adjustment of the terms of the loan as a way to temporarily reduce their expenses although they may find that it is much more difficult to get the approval of the bank or lender if such is the case. The financial institutions often hesitate to give in to requests for a restructuring of the mortgage because this will severely affect their cash flow estimates.
Banks and other financial companies are in the business of lending money to provide the regular flow of money that they can use again to produce more money, and so on. A commercial loan modification will disrupt this flow so it is only natural that the banks will resist as much as possible. The only way to improve your chances of getting your petition approved is to show that it would be for the best interests of the lending companies to adjust the terms. This will also be true for businesses that want to sell the property through a commercial short sale where the bank will have to consent to the discounted selling price that normally will not be enough to completely pay for the total outstanding debt.
An important strategy that may be taken is to get the services of a commercial loan review expert or professional who has the experience on how to use the best techniques for convincing the banks. One such tactic is to conduct a thorough review of the mortgage documents to find out if the lender had taken any shortcuts that violated certain laws. Studies by experts have revealed that a large percentage of the lenders during the boom period had indeed transgressed certain laws and regulations that have been established by the government to safeguard the rights of borrowers from predatory practices.
When such violations are found in the documents, they may be utilized by the company to strengthen its negotiating power when asking for changes to the terms. This is because such violations if proven to be true can negate the provisions of the mortgage, including foreclosure. In fact, even if the foreclosure proceedings have already been initiated, the court can order that they should be put on hold until the hearings with regards to the violations have been completed. The lender may even be required by the court to reimburse all of the previous payments that have been made. If such violations are found, they can be used in combination with documents showing the bank that the borrower has temporarily lost the ability to make the regular payments. It may also help to prove that the reduction of the amounts or the provision of a grace period for the business to recover until such time that the financial situation has improved and a return to the original amounts may be possible, can be beneficial for both borrower and lender.
Pros and Cons of a Small Business Credit Card
One of the major concerns of small businesses is cash flow and credit cards seem to be the ready answer to this problem. Try looking for one and you will be swamped by choices: both Visa and Mastercard offer four credit card choices for small businesses and credit card giant American Express has eight. There are also hundreds of partner banks to choose from.
Small businesses do not really need credit cards to operate smoothly, but these plastics can come in handy. With so many business credit cards to choose from, the decision really depends on one thing: actual need. Here, I examine why small business credit cards are a blessing from creditor heaven and why you probably will not need them.
A credit card should not be your only source of capital, but it can be a sensible means with which to purchase materials, goods and services during periods when cash is a little tight. And I really know a lot of small businesses go through some cash-flow squeeze.
Small business credit cards are also a practical means to make large purchases, provided your credit limit can accommodate the amount. They can also offer an effective financial transaction tracking system. Many credit cards are being offered with software that can record purchases and deals, even those made by your employees.
Another reason why you might want to use a small business credit card is that many creditors offer rewards for usage such as discounts, prizes and cash-back schemes on top of the usual flyer miles.
But your small business credit card will be signed by you and if ever you defaulted on your business credit card payments, the creditors or banks will not be coming after your business, they will be homing in on you. This is usually the case for small businesses just starting out, when the professional and personal finances of the owners are considered the same.
On that note, whatever record you have on your small business credit card will be included in your credit report. If you miss some payments in your business credit card, it might reflect badly on your personal credit history, making your finances look more unstable than it truly is.
For the first few years when your personal and professional finances are not yet treated as separate entities, your business credit card will not be enjoying the same protection for consumers that are provided with a personal credit card. An example, billing errors on your personal credit card may be disputed within a certain period so you cannot be labeled as a delinquent consumer. With your business credit card, that is not the case.
Also, personal credit card companies will assist you during instances when you purchase bad merchandise through credit. Many small business credit card companies will not.
Should you pack a plastic or not? If you are disciplined enough and willing to take on an added responsibility, then maybe small business credit cards are for you. Just be sure to choose and use them wisely because they can and will affect your credit record if you are not careful. Also, you should be able to pay off your balance as quickly as you can. This will score you a lot of points with your personal and professional creditors and it will also help you renegotiate your terms more convincingly later on.
Business Cash Advance – Business Funding Made Easy!
There is one question that haunts each and every small business owner: "How do I get enough cash to run my business smoothly?" The question is not as easy as it appears to be. While people who are new to this might be thinking of those nice bank loans and SBA funds, ask someone who has actually tasted the water! Most banks would have a long list of terms and conditions that you will need to fulfill besides the hefty collateral that they would demand before issuing a loan. Talk about SBA funding, well that's too little for the total number of entrepreneurs applying for it. So what other alternative do we have?
Business cash advance is probably the best alternative in such a situation. A cash advance is nothing new, the concept has been around for a while, but with the increasing use of Internet, it is becoming more popular and easier for people to get a business cash advance.
It is pretty easy to get a business cash advance. You can fulfill some easy conditions and easily have a decent fund at your disposal. The most important factor that determines whether you qualify for a business cash advance is whether your business accepts credit card sales. Business cash advance providers provide cash against your credit card receipts.
The typical conditions that any business cash advance providers would ask for are:
The business should be in existence for at least 1.5 -2 years
The business should have a minimum amount ($1500) of credit card sales per month.
Credit card statement or bank statement of 12 months (3 months for seasonal business)
Most small business owners can satisfy these conditions, which makes it a lucrative option for funding their business.
In addition, the application process is very simple. Most good cash advance providers would not charge you any application fee and you can apply for a business cash advance by simply filling out the online application form on their websites.
As a bonus, business cash advance doesn't come with a fixed repayment schedule; hence there are no late fees. Also, in most cases, you don't need to guarantee the cash advance personally.
A small business loan is not just hard to get but often its use is tied down by certain conditions put forward by the lender. Business cash advance frees you from any such bindings - it's your money and you can spend it the way you like. So if you need money for your business now, be it for the recurring expenses, for business expansion, to buy a machinery, purchase inventory, advertising or for any other business expense, don't get frustrated by the NO's you get from the banks. Just say YES to Business Cash Advance to let your business have a smooth sailing.
Why Finance & Accounting Outsourcing For Start-ups and Small Businesses
It is not uncommon to see entrepreneurs struggling with spreadsheets, outstanding payments & invoicing issues, hiring admin staff and still spending lengths of time dealing with Accounting & reporting issues.
In today's hi-tech environment, businesses are generally very good at deciding which services to specialise in and which to outsource. However, Finance & Accounting support needs are often underestimated by small businesses. With the exception to Payroll which usually gets outsourced all the other functions are either not fully performed or kept in-house at the mercy of unqualified staff.
This is mainly due to general lack of understanding within small enterprises of what Finance & Accounting functions are and how they support the business.
Big businesses benefit from a fully-running Finance department with dedicated Finance Directors, Financial Controllers, Management Accountants, Accounts Assistants for managing the more routine sales and purchase ledger tasks and Credit Controllers etc. Small organisations can also benefit from having specialised skills in their pockets but due to small scale they generally opt for hiring an all-rounder to perform all the duties within their 'finance department'. This may work sometimes however for the most it does not provide the effective and efficient support a good outsourcing company can.
One of my clients, a classic modern small business with a turnover of circa