Obtain Business Capital Using A Variety Of Commercial Finance Options

Commercial finance is one of the many options available to entrepreneurs seeking capital to start or grow an existing business. This sort of financing is also referred to as asset-based lending, meaning that it is a secured business loan. The borrower guarantees the loan by giving up business assets as collateral for the loan. Another … Continue reading “Obtain Business Capital Using A Variety Of Commercial Finance Options”

Commercial finance is one of the many options available to entrepreneurs seeking capital to start or grow an existing business. This sort of financing is also referred to as asset-based lending, meaning that it is a secured business loan. The borrower guarantees the loan by giving up business assets as collateral for the loan. Another popular phrase for commercial finance is asset-based finance.

Account receivable factoring is one form of commercial finance. This consists of selling open invoices for cash that can be used right away in the business. There are many benefits to this financing option including not giving up equity, being able to take advantage of early payment and volume discounts from your suppliers, you can actually purchase in greater volume from suppliers, and you also accrue no additional debt in your business.

Another popular commercial finance option is purchase order financing because it offers quick cash flow reserves. When any business is growing or expanding their business the cash flow simply isn’t there because of the money it takes to market and produce products. Suppliers also want to be paid with C.O.D. and your customers are on Net-30 terms; so you run into a cash flow problem. Purchase order financing solves this issue by paying for the costs of your goods directly to the supplier, thus giving you more cash to use on more critical business expenditures. To begin with purchase order financing simply obtain a purchase order from your customer, find an approved supplier, place the order through that supplier.

Asset based loans, an additional commercial finance option, provide a short term approach to maximizing cash flow within a business. This form of financing is used as test for a business to show how they would perform with a long term loan. The business who is receiving the asset based loan has a short window to prove that with the proper financing their business model is effective, and that a long term loan would ensure business growth over a long period of time. This form of financing is perfect for the business that can’t afford to wait to establish their business credit. The assets that are accepted as collateral for this type of loan include real property, accounts receivables, and completed inventory.

Other forms of commercial finance include bankruptcy reorganization, expansion financing, import and export financing, inventory loans, secured lines of credit, and merchant account advances. Financing a business is a difficult process, but if you utilize the financing resources available, your business have a much greater chance of success.

It is also good to work on establishing your business credit, ensuring that you separate your personal credit from your business credit. With good business credit scores obtaining large loans and other forms of capital is very simple, and you won’t be one of the 97 percent that actually have a loan application denied. One other strategy that is easy to do and beneficial on your quest for business capital is to use a free business capital search engine.Article Source:

Using Home Equity to Finance Summer Projects by Jeff Hammerberg

Summertime is right around the corner. And with the right amount of cash on hand we can take full advantage of travel and vacations; complete a long list of to-do projects around the house, or pay for all those amenities, gadgets, and toys that make summer more enjoyable.

But playing in the sun and surf usually shrinks our income rather than plumping it up, so the season always presents us with a challenging contradiction: Do we sacrifice our summer pleasures or wipe out our savings? Rather than succumb to the urge to depend on credit card debt to finance the fun and play now but pay later, it may be a better strategy to tap into the equity that is still hibernating within your home. That way you can have your cake and eat it too, by increasing your cash flow without necessarily putting your budget or savings at risk.

For some consumers, taking out a home equity loan or doing a mortgage refinance will actually increase their net savings. For example, if you are caught in an expensive interest-only or adjustable rate mortgage you can bail out by refinancing into a safer and less expensive 30-year fixed rate mortgage. Those who are getting walloped by credit card interest can take out a less expensive home equity loan as a good way to consolidate and pay off those double-digit credit card rates.

Just calculate the average of the rates you?re paying now and compare that to available home equity or refinance rates to determine your savings. If you are paying 16 percent in credit card interest and can qualify for an 8 percent equity loan, for example, you?ll automatically save 8 percent. And if you have an adjustable rate mortgage about to reset, you can refinance to a fixed rate in time to avoid the spike in your monthly installments. You?ll pay some closing costs to refinance, but you can also calculate your savings rate on those by dividing your costs by the amount you?ll save each month. For instance, if you can save $100 a month by refinancing and the closing costs to do so are $1,500, it will take you 15 months to break even. Each month after that you?ll gain net savings of $100. Stay in your home for 10 more years and you?ll save about $12,000.

To generate cash through home equity for kitchen upgrades, tuition, a new car, or a European vacation ? in other words, for whatever expenses you foresee ? you have at least three choices:

Cash-Out Refinance

The ?cash-out? refinance is a great option for those homeowners who have lots of home equity. If you owe $150,000 on your mortgage but your property is worth $350,000, for example, you can pay off the existing $150,000 by refinancing. But a cash-out refinance means you borrow more than $150,000, using the surplus for whatever you want.

Borrow $250,000, for instance, and you?ll walk away with an extra $100,000. Your monthly payments will increase, but the benefits may justify the added expense ? especially if you invest the money your borrow wisely or refinance into a better mortgage in the process (such as switching from an ARM or negative amortization loan into a 30-year fixed rate mortgage).

Home Equity Loan (or 2nd Mortgage)

Home equity loans or 2nd mortgages typically carry higher interest rates than first mortgages, but have little or no closing fees. And while refinancing can take a month or more to finalize, applications for home equity loans are simple and loans can usually be funded within a week or two. These are a good choice if you have major expenses ? such as opening a business, renovating your home, or buying a vacation property ? and you want to stretch repayment over a period of several years.

Home Equity Line of Credit (HELOC)

The HELOC is an open-ended mortgage that behaves much like a credit card. You borrow what you want, when you want it, and if you only pay interest on the amount you borrow. Typically there are no fees to open a HELOC, and if you choose not to use it you won?t be charged any interest. Use it and then pay it back and your credit limit goes back up so you can borrow it again if you want to. HELOC loans, like credit cards, are convenient for short-term financing of smaller purchases. But the interest you pay on your HELOC will likely be considerably less than typical credit card interest rates.

Keep in mind that all mortgages and home equity loans are secured by real estate, so if you default on these loans you can put your property at risk. Take advantage of borrowing against your residence only when you have a repayment plan and sufficient financial strength to pay back ? in a timely manner ? any obligations you might incur.

For expert help with all your real estate and mortgage needs, visit the professionals at or Or call toll free 1-888-420-MOVE (6683). They are dedicated to assisting members of the global GLBT community.

Commitment, passion and dedication to changing what you perceive as a social injustice and prejudice was the drive that encouraged Jeff Hammerberg to create a monumental service to the American LGBT community, one that he had envisaged for a quarter of a century. 2004 was a significant year in realizing his dream, as Jeff Hammerberg, founder of the largest LGBT real estate marketplace in the world, reaped the rewards of his vision that had been nurtured for 25 years.

During the 1990s, Jeff Hammerberg worked in residential real estate, and observed first hand the “quiet homophobia” that pervaded the industry and silently but effectively hampered the lives of LGBT consumers nationwide by placing barriers between them and home ownership. By 1997, with little more than foresight, a strategy, and zealous fortitude, Hammerberg broke away from the traditional real estate community to create the first virtual real estate marketplace for LGBT clients.

Beginning with an Internet company dedicated to assisting home buyers and sellers in the USA, Hammerberg gradually added services and sites, while adhering to a strict personal commitment to donate proceeds from his businesses directly into the LGBT community.

By 2004, he had created and which are all ground-breaking companies in terms of concept and adherence.