Gold Beacon Capital Corp’s Official Blog featuring the Commercial Finance and Lending Industry’s latest updates, news, and resources.
Getting approved for a loan is a difficult process. If you have been trying to apply for a loan, you may know that it’s not all about your financials. There is more to the application process than simply possessing money. In many cases, other factors can help you in your quest for a loan, even if your financials are somewhat less than desirable. Here are a few things that can help you become the ideal loan applicant.
First impressions are always important. Like it or not, the way you look has an influence on how people view you as a person. It may be a conscious decision, or a subconscious leaning, but either way it is always important to put your best image forward when applying for a loan. Looking sharp and professional are good ways of letting your lender know that you are a good investment.
Your personality is also important. Letting your lender know that you are a serious, steadfast, and responsible loan applicant is an important step in securing your loan approval. Lenders want to lend to people who are going to pay them back, so proving to them that you are responsible enough to do that is vital.
Lenders are looking to lend to people who have the means to pay them back. They are, after all, in the lending business to make money. Proving that you have the capitol to pay back your loan is incredibly essential. Having a good job or an excellent business plan, if it’s a business loan you are applying for, is an excellent way to show that you have the means to fulfill the terms of your loan.
Collateral is a key element of applying for any loan. Having something to put up as collateral lets a lender know that you are a serious loan applicant. Sometimes, having excellent collateral can overcome having some problems with your application. Having barely sufficient capitol can be compensated for by having excellent collateral to put up. This shows the lender that you are serious enough to put up something you worked hard for and that you will work hard to keep it by means of paying back the loan.
Getting a loan is serious business, so making yourself the ideal loan applicant is important. Presenting yourself well, showing your responsible side, providing evidence of capitol, and having sufficient collateral are all important steps in letting a lender know that you are serious about the loan you are applying for and have every intention and all the means necessary to pay it back.
How funding your startup business with your retirement savings is not the best decision when searching for financing.
Is borrowing against your 401K smart? A common question and concern among today’s entrepreneurs, in a world where obtaining traditional bank business loans can seem somewhat impossible.
Startups are always a gamble especially those featuring a new product to the market, so I guess the first question to ask yourself is ‘are you willing to invest all your savings you’ve spent your working years achieving into something not guaranteed?’ Many might say ‘Of Course! This is my dream, this is what I have been saving for!”
In regards to the dreamers out there, it is possible to have your retirement funds self-directed into helping fund a startup business or the purchase of a franchise. With that process, you essentially would have full control of your investment, as well as no debt.
Sounds great right?
Well with every pro there is a con…or two. First off, it really depends on how much you actually have in your 401K to use towards your startup investment. Do you have a wealthy nest egg to sit on? Or would your investment be scraping the bottom of your retirement, clean?
Borrowing against your 401K can be very risky. Startup investments can easily eat away at half of your savings within the first couple months. Tapping into retirement is actually only really suggested if your business is being foreclosed on, evicted, or your company is battling debt with high interest rates. If your business does not apply to any of the above, then why take the risk?
Entrepreneurs and Business owners should consider alternative lending solutions before reaching into their savings for help financing their business. SBA loans, Bridge & Hard Money loans, as well as Unsecured Business Lines Of Credit are all alternative financing options for businesses when it comes to startup, growth, or even just making it over a financial crisis.
SBA loans obtained through a private investor have actually become increasingly more popular over the last 5 years. Due to the downfall in 2008, business owners are turning from the banks to private investors and lenders for a better opportunity at receiving funding and at lower rates too. Gold Beacon Capital Corp offers an array of different lending products for established or new business owners to obtain and use to help start or grow their business.
So the decision is ultimately yours, gamble your nest egg or put your trust in the hands of experienced investors who will guide your business to the financing you need to be successful. Whichever route you choose, take time weighing the pros and cons of each.
As prepared as we may think we are, emergencies and disasters can come out of nowhere and have a significant impact on our business physically or economically. Whether affected directly or indirectly, the business will most likely see a decline in sales, which will ultimately disrupt the course of business.
When struck with a natural disaster, it’s hard to know where to being with recovery. An important first step you can take for your business is to determine the financial position of the business. Is the business even capable of reopening? If so, where can you find financing that will assist you in doing so?
SBA Disaster loans are specifically designed for financing businesses suffering from a physical or economical disaster. There are two types of SBA disaster loans, each specific to the nature of the damage.
Types of SBA Disaster Loans:
- Business Physical Disaster Loan, which is generally used for funding repairs or replacing, damaged business property, including inventory.
- Economic Injury Disaster Loan (EIDL), which produce working capital to help small businesses through a disaster recovery period.
How to Apply For an SBA Disaster Loan:
- Before considering a disaster loan option, the location and area of your business must be declared as a “disaster area” by a government official and followed up by FEMA’s (the Federal Emergency Management Administration) verification.
- The first step in receiving help with recovery costs is through applying for FEMA disaster assistance online.
- After receiving aid from FEMA, you business can be assessed for financing the rest of the damage and recovery costs through the SBA.
- Once the damage of your business has been assessed, here are the Documents you will need to read through and fill out before submitting to Gold Beacon Capital Corp for help obtaining an SBA disaster loan:
- Disaster Business Loan Application
- Copies of the Businesses 3 most recent income tax returns
- Business balance sheet with current profit and loss statement
- Current listing of the business’s liabilities
- Recent personal financial statement
- If applying for an Economic Injury Disaster Loan, also complete This Form
Gold Beacon Capital Corp’s Advice For Further Recovery:
-Continue to generate regular cash flow forecasts in order to budget your financing and prevent more debt.
-Evaluate cash cycle frequently to make sure your business is on budget
-Keep in contact with your customers frequently; in order to cut down on the time you spend waiting on the businesses accounts receivables to be paid.
For more information and resources on how Gold Beacon can help finance your business, contact us today!
Founder and CEO of Gold Beacon Capital Corp; Bill Whitmore was recently featured in one of Maine’s top business new sources; Mainebiz for the launch of his commercial lending services company. Whitmore was interviewed about his past and current experience in the business world as well as his plans for the new company. Below is the full press release and access to the article on the Mainebiz website.
Gold Beacon Capital Launched to
Support Maine and Northern New England Business Owners
Commercial Lender Will Focus on
Providing Financing to Small Businesses
PORTLAND – A new financial resource has been launched by Portland-area businessman Bill Whitmore, focused on providing commercial financing to the region’s entrepreneurs and small business owners.
Whitmore says that his latest venture is the outgrowth of his experience as the owner and operator of a successful fitness center franchise.
“The economy of northern New England in general and Maine specifically is driven by small business. As a once-fledgling business owner, I faced the same hurdles that others have in finding the financing to support the opening and growth of my own business. I have literally, ‘been there, done that’ and have experienced the frustration many face in acquiring the necessary capital to expand or improve.” Whitmore continued, by saying, “we have to get capital to smaller enterprises in order to create the jobs that underpin the life of our communities.”
Whitmore added that his experience in launching and expanding his fitness center business is a value-added for their clients. “Rather than being just a banker, we can also provide business insight and expertise that is based on sitting in the same chair as our clients.”
“Nothing was harder starting out than gaining access to working capital,” Whitmore said. “The lending market has only become more difficult for most small businesses, and I see an opportunity to help fill the gap between small business owners and traditional lending institutions.”
There is capital available for small businesses, Whitmore noted, at attractive rates and terms, and without the many obstacles and restrictions that come with traditional bank lending products. “Many business owners aren’t aware of alternative lending options which may allow them achieve their goals when a traditional bank does not meet their needs. Gold Beacon Capital can offer them a ‘one-stop’ resource for evaluating alternatives specific to their needs.”
Companies ranging from start-ups to $10 million in sales are Gold Beacon Capital’s target market. The firm will specialize in commercial finance with a working capital focus and provide a variety of alternative lending solutions including equipment leasing, sale leasebacks, accounts receivable financing, factoring, franchise lending, business acquisition financing, SBA financing, commercial real estate loans and more, Whitmore said.
“I understand how much owners put into their companies both emotionally and financially, and I want to work with owners to help solve the issues they face everyday,” Whitmore said. “If you are looking for capital or financing for your business, you should know that you have options. Banks are now not the only game in town.”