Andrew Wan

Investment property financing allows you to acquire residential real estate for investment purposes. This can be in the form of a short- or long-term investment, such as a fix-and-flip or fix-and-hold property. Different types of loans can be considered for investment property financing. Common examples include conventional mortgage loans, owner financing, home equity loans (HELOANs),…

The prime rate can affect the interest rate you get on a loan, although lenders may use varying methods. It can fluctuate over time, so being aware of the prime rate can give you an idea of the range of interest rates you might be able to get. As a general rule of thumb, the…

Since merchant cash advances (MCAs) use a factor rate instead of a traditional interest rate, it can be difficult to understand the true costs of getting this type of financing. You can use our merchant cash advance calculator above to find your effective Annual Percentage Rate (APR) to understand how much you’ll end up paying….

Franchise financing can provide the money you need to purchase a franchise. It can also cover working capital needs for day-to-day expenses such as rent, utilities, maintenance, inventory, payroll, and other business costs. You can get franchise financing from a wide range of sources. Each has differences with regard to things like rates, fees, and…

A hard money loan is a form of short-term financing for real estate and typically has easier qualification requirements compared to traditional forms of financing. It can also be easier to get approved if you have bad credit. Unlike traditional loans, hard money lenders can issue financing on properties that need repairs. These flexibilities, however,…

The debt service coverage ratio (DSCR), or debt coverage ratio for short, is a financial measure of a company’s ability to pay debts from its cash flow. Here is the DSCR formula: DSCR = Annual Net Operating Income Annual Debt Obligations In general, a DSCR of 1.25 or greater is viewed favorably when it comes…

A business loan cosigner is an individual who promises to make payments on the loan if the other borrower(s) are unable to do so. Getting a cosigner can improve your odds of landing a loan approval. However, you should be aware of the risks involved with doing this. For instance, missing a payment on a…

The Small Business Administration (SBA) offers a line of credit program where funds can be used to cover temporary, short-term, and cyclical working capital needs. Some examples of what an SBA line of credit can be used for include inventory, labor costs, administrative expenses, and funds to help with the rehabilitation or repair of commercial…

As a general rule of thumb, business loans are the best option if your company needs funding. This is because merchant cash advances (MCAs) are an expensive form of credit that we typically recommend only as a last resort. However, both MCAs and business loans can be beneficial if used properly. Funds from each of…

As a business owner, it’s possible to use a home equity loan (HELOAN) for business purposes. Although you’ll need to own a home with sufficient equity, it may be more suitable compared to a traditional business loan because its qualification requirements can be easier to satisfy. You can get a home equity business loan by…

Accounts receivable (A/R) financing, sometimes referred to as invoice financing, can provide your business with funds if you have unpaid invoices you’ve issued to customers. This can be helpful for companies that have a large amount of earned revenue that is yet to be received. It’s usually possible to get up to $10 million in…

If you’re looking to acquire commercial real estate (CRE), buying and leasing are two options you can consider: Buying real estate typically requires more cash upfront but it allows you to build equity, has more flexibility in making modifications to the property, and has fewer long-term variable costs. Leasing real estate requires less upfront money,…