small business loans how to qualify
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It is very important to know what is included while arriving at the current assets and liabilities figure.
how to get a business loan at standard bank
Unlike, conventional loans the interest rate on the SBA 7a program tends to be a floating rate with periodic payment adjustment rather than a fixed rate. However, some lenders will offer fixed rate options for certain real estate or business acquisition transactions. Again this varies from lender to lender. The "Ugly" all principals with greater than 20% ownership interest in the business will be required to personally guarantee the loan. Again unlike a conventional loan the SBA lender will most likely require to file a lien on your personal real estate property if there exist any significant equity. The "Good" is that the 504 loan program can be used to finance new construction and acquisition of larger owner occupied businesses with real estate and hotel projects. The longer terms and amortization schedules and fixed interest rates on both the bank and CDC notes provides the borrower with the greatest cash flow coverage and interest rate risk protection. The 504 loan program pricing, term/amortization, and minimum equity injection in most cases will be more favorable to the borrower then an alternative conventional loan option. The "Bad" unlike the 7a program many cost under the 504 program in ineligible to be financed such as franchise fees, working capital and inventory. The 504 program is only limited to owner occupied real estate and no investment or multi family properties qualify. The "Ugly" the 504 loan program primary purpose is to provide small business owners with long term financing and not intended to be used as a bridge loan therefore prepayment penalties in the early stages of the loan are very high.