Small Business Factoring

josh e asked:


Just wondering maybe something in this bill to promote the opening of small businesses ?

For Commercial Finance Loans – Factoring Loans * Equipment Financing * Purchase Order Finance * Commercial Mortgage – IMM Financial has been in the Commercial Finance Business serving companies just like yours for over 14 years. Put our experience to work for you. We are the Cashflow Specialists.

M L asked:


I have a small business in New Orleans. I got a letter from Allstate tthat when I renew my business policy in October, they will not longer be covering any damages from windstorms or hail. That is real depresing. Has anyone else gotten any notice of this? If we have another hurricane, this policy change will essentially put the city out of business. Small businesses wil not be able to recover from that type of loss as many of us already have SBA loans from Katrina. I plan on contacting the insurance commissioner. Please feel free to email me if you have gotten notice that your insurance company will do this. If we all contact the insurance commissioner together, maybe we will be heard.

For Commercial Finance Loans – Factoring Loans * Equipment Financing * Purchase Order Finance * Commercial Mortgage – IMM Financial has been in the Commercial Finance Business serving companies just like yours for over 14 years. Put our experience to work for you. We are the Cashflow Specialists.

jeff rauth asked:

Restaurant owners have limited options for commercial mortgages, relative to other businesses and building types.  One of the most common options is the SBA loans.  Although not perfect, they can be a viable option.  For one, they are still reliable and are still closing.  Two, they do offer some of the lowest fixed rates available and the highest level of financing for restaurant loans. 

 

Interest rates for restaurant loans are currently in the mid 6%’s to mid 7%’s depending on the particulars of the transaction.  Combine that with 85% financing on purchases AND 85% financing on refinances and it is easy to see why the SBA has had such a huge impact on American Small Businesses. 

 

Compare that to traditional bank financing, rates are about the same, but you would have to come out of pocket 30-40% of the purchase price.  Refinance financing is more limited and harder to close and loan to values are normally capped at 50-60% as well.  Again with the SBA programs you can go up to 85% loan to value on refinances on restaurant loans.   

 

The SBA programs have received a lot of criticism over the years, some of it warranted, some of it not.  One of the biggest complaints is the time frame and bureaucratic process.  A key to avoiding the long delays is to work only with PLP lenders.  If you do not your loan will have to be underwritten and approved twice, once by the funding bank and secondly by the SBA.  If you work with a PLP lender the loan will only have to be underwritten once, and you will avoid at least one month of delays.  It is common to close SBA loans in 60 days which is right in line with all commercial loans. 

 

Another major criticism is that the fees are excessive.  The SBA 7a loan normally has a 2.75% front end “SBA Guarantee Fee” and the 504 has a 2.5% fee for its half of the loan.  However it is important to realize that not all lenders and the way they structure deals are the same.  For example we work with a bank that will absorb/pays for this fee for the borrower.  So the borrower gets all of the benefits of a long term fixed rate loan with zero fees. 

 

In terms of fixed rates it depends on how the loan is structured.  With the SBA 504 you can easily get 7 to 10 year fixed rates, with 25 year amortization schedules.  With the SBA 7a most are floating, however it can be offered as a 3, 5 and though rare, 10 year fixed rates.  We are currently working with two banks that offer the 7a as a 5 year fixed loan for restaurants.   Again, as a comparison most bank financing will not exceed 3 -5 years, and the amortization schedules rarely exceed 20 years with loan to value restrictions at 50 060%.  

The SBA programs can provide a lot of flexibility compared to conventional bank financing.  Again, keep in mind that not all lenders/banks that use the SBA guarantee are the same.  So, if you have been turned down by a bank that offers SBA loans, it does not mean that you are ineligible for SBA financing, it may just mean that the actual funding bank, didn’t like your deal.   The SBA is not the lender, they are guaranteeing the loan for the funding bank in case of borrower default.  At the end of the day the bank is still on the hook for the loan and banks appetite for deals and guidelines vary widely.   And the way that banks structure the loans vary as well.  Again, for example 99% of banks offer the 7a as a floating rate, we however have access to a 5 year fixed, 7a program. 

 

 

 

 

Wade Henderson – very Professional – 15 yrs in the Business Finance Field – reputation for getting the deal done. IMMFinancial.com factoring and invoice discounting accounts receivable loans invoice factoring companies factoring of receivables factoring money government factoring account receivable factor business receivable factoring asset based factoring medical receivable factoring

Jason Roberts asked:

Building your small business and helping it grow takes a lot of effort and more frequently a lot of money. More often than not the amount of money a small business needs in order to grow properly is difficult to obtain without help from outside sources, like loans. If your business is in the growing process and needs help getting loans, then turn to the SBA, or Small Business Administration. This federally funded program offers assistance to individual businesses in order to help them get the necessary loans or information they need in order to build their business. If you are interested in an SBA loan, then you will want to read the following to find out what an SBA loan is, how to qualify, and the best way to qualify for this type of financing.

First of all, a SBA loan is not exactly a loan but a guarantee for a traditional loan up to a certain percentage. The SBA works to help small businesses gain traditional means of financing like loans from banks or other lending institutions. However, many businesses are too risky for many banks to loan to. In this instance, if the company has equity or personal assets to back up a percentage of the loan, then the SBA will guarantee a large percentage of the loan for the company. When the SBA guarantees the loan for a company then banks feel more comfortable and less risk, loaning the money to the business. However, do not think that the SBA will loan you money or anything of the sort. The SBA is simply in place to guarantee loans and help you receive the financing you need.

If you are interested in qualifying for SBA assistance then you will need to fill out some forms and apply. The best thing to do in order to have the best chances of receiving assistance from the SBA is to ensure you have decent to good credit and assets that you can guarantee a percentage of your loan with as well as a business that is in a growth phase. If your company has really bad credit and no assets in which to guarantee a percentage of the loan with, then the SBA will not be able to help you. So, for the best chance of receiving this assistance make sure you have decent credit and can put up some assets or money to help your business grow as well.

The SBA is a wonderful federal program that’s sole existence is to help the small business grow and be successful. However, make sure you meet minimum requirements for this type of assistance before you begin the application process. By doing this you will save yourself time and money spent on applications that are not qualified. If you have additional questions about the

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Kristin Gabriel asked:


an families are having to making sacrifices these days, thanks to the economic downturn, just like many small businesses are being forced to cut expenses and manage their cash flow better. However, many small businesses, including the construction industry, can get by if they implement new billing and cash flow procedures.

One highly effective cash management strategy, particularly in the construction industry and for sub-contractors who often experience cash flow problems, includes accounts receivable factoring, which allows businesses to obtain funds based on their current accounts receivable.

Cconstruction factoring been used in the construction industry for many years. But the recent tightening of credit markets has been especially hard on the construction industry in general. Industry trends like sustainable building has forced changes in building code standards. Lately, there has been an increase in using factoring among contractors, which provides the much needed cash flow to pay suppliers and meet payroll.

No matter what business you are in, doing business can be time consuming, and many entrepreneurs find that they get so busy running their business that they forget to bill their clients on a regular basis. So the usually come up short when it’s time to pay their bills.

Billing on time each month is critical for cash flow. Make sure you put a billing system in place for billing on a regular and timely basis. You can also negotiate regular payment installments in advance for long-term projects.

Some entrepreneurs have started putting incentives in place in order to get paid faster. For example, offer your customers a percent discount if they pay early, or on time, as opposed to waiting 30 days. It is great for cash flow!

Think about consolidating any loans you may have. This includes business credit cards, or equipment, even vehicle loans. Review the terms for these loans, then shop your banks to find a lower interest rate and consolidate the loans into one. This will undoubtably improve your monthly cash flow.

Remember that when and if you get in a pinch, invoice factoring can help create cash flow. Invoice factoring is great for quick financing. Accounts receivable factoring doesn’t require a business plan or a tax statement, and it is a quick way to get cash when you are experiencing a cash crunch. More and more businesses are using the newer single invoice factoring for extra cash flow.

For Commercial Finance Loans – Factoring Loans * Equipment Financing * Purchase Order Finance * Commercial Mortgage – IMM Financial has been in the Commercial Finance Business serving companies just like yours for over 14 years. Put our experience to work for you. We are the Cashflow Specialists.