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.
Starting a Catering Business – Preparing a Business Plan
When it comes to starting a catering business, as with any other business, a business plan is crucial for starting out in a clear direction, setting goals to aspire to and for measuring progress along the way.
When researching a business everyone from you business partners to your bank manager or investors will want to see a business plan. But a business plan is also a way for you, as the owner to get all your information down in one master document that will help you to stay organized and focused.
But where should you start? How do you set out a business plan? This article will look at the main components of a catering business plan and towards the end will let you know how you can go about getting a sample business plan from an already successful catering company that you can use as a base to assemble your own.
1) An Executive Summary - A brief outline to introduce the reader and let them know what the business is about.
2) Objectives - Basic goals for the company over the medium term (3 or 4 years). What should be achieved and when it should be achieved by.
3) The company's mission (values, ideals)
4) Ownership structure
5) Start-up details - what equipment is needed, what are the start-up costs
6) Market Analysis - In depth market research should be included here as well as details on which niche catering markets are targeted and what services or products will be offered to them. Research into competitors should be included here along with how the business will gain a competitive edge over those competitors.
7) Marketing Strategy - Including advertising and sales methods. Sales forecasts should also be included.
Management - Outline the management structure of the new business.
9) Employees - Set out a plan for when employees will be hired and try to get estimates on how much overall staffing costs will be on an annual basis.
10) Financial details - This is perhaps the most important part of the plan. Estimated revenues and costs should be set out in spreadsheets over a hypothetical 3 or 4-year period. Then profits and losses can be projected based on these estimates. You may also insert optimistic figures and pessimistic figures to get an idea of 'best case scenario' and 'worst case scenarios'. The financial analysis should also attempt to identify the date upon which 'break even' point will be met. This can be a little technical and if you are not an accountant some guidance is needed.
You can get generic business plans and guides that tell you how to write them, but it would be great if you had something specifically related to a catering start-up. Getting a hold of an example of a real catering business plan can be tough as successful business owners usually keep business plan details private. If you could get a hold of a plan to use as a basis for putting your own plan together it would definitely make your job much easier.