A home equity loan (HEL) may be easier to get than other types of startup financing. If you have equity in your primary residence and strong personal credit, you can use a HEL for one-time expenses or needed capital influx into the business. Your local bank can provide a HEL. If it already has your…
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Buying vs Leasing Commercial Real Estate
When your business decides to acquire commercial real estate, you must decide whether to buy or lease the property. If you buy the property, you’re either paying cash upfront or financing the cost of ownership of the property. Once the payment is made in full, you own the property outright. With a lease, you’re paying…
Startup Business Loans: The 7 Best Ways to Fund Your Startup
It can be challenging for a startup business to qualify for a loan. Without the lengthy financial and credit history required by many banks, startups often get denied funding by traditional lenders. However, many financing options are available, including rollovers for business startups (ROBS), Small Business Administration (SBA) loans, and lines of credit. Each type…
Commercial Real Estate Loan Rates for 2022
With interest rates still being held down by the ongoing effects of the COVID-19 pandemic, this is a good time for small business owners to take advantage of low commercial real estate (CRE) loan rates. The type of commercial real estate loan you choose will be one of the determining factors in your interest rate….
What Is Equipment Financing: Loans vs Leases
Equipment financing is an asset-based loan or lease that allows business owners to acquire equipment for their business. Equipment financing allows you to spread the acquisition costs of equipment out over a longer period of time. A loan guarantees the collateral―equipment, machinery, or vehicles financed―will transfer ownership at the end of the term. With a…
7 Best Equipment Leasing Companies for 2022
There are numerous equipment leasing companies and types of leases available. The best leasing options for you’ll depend on your specific business needs and the type of lease you’re shopping for. Here are the seven best equipment leasing companies for 2022, and what each is best for: : Best overall equipment leasing company : Best…
Investment Property Line of Credit: What It Is & How It Is Used
An investment property line of credit (LOC) is short-term financing on a property that isn’t owner-occupied. A lender will place a lien on an investment property in exchange for a revolving line of credit against the property. It operates the same as a home equity line of credit (HELOC). An investment line of credit is…
Same-day Business Loans: 6 Quick Loan Options for 2022
Small business owners often need funding quickly to take care of financial emergencies that might arise. Some small business loans can take weeks or even months to close, but there are hundreds of online lenders that provide same-day business loans. Here are our choices for the six best same-day business loan options: : Best overall…
7 Best Easy Business Loans for 2022
If you’re searching for an easy business loan, you should choose a lender or a broker that provides a straightforward and rapid application and approval process, fast funding, and simple terms and qualification requirements. The seven lenders and brokers on this list are the best options for an easy business loan or line of credit…
Mixed-use Loans: What They Are and How They Work
Real estate investors use mixed-use loans to finance buildings that are used for a combined purpose. Mixed-use buildings are zoned for multiple uses, including residential, commercial, industrial, or institutional. Mixed-use loans can be short-term or long-term, with terms ranging between six months and 30 years. Any building with at least two units of different zoning…
Best Alternatives to Merchant Cash Advances
Because merchant cash advances (MCAs) are so expensive—often having annual percentage rates (APRs) of more than 200%—small business owners should consider all available alternatives for financing. The following list includes the best lender alternatives to merchant cash advances and what they’re best used for: : Best short-term small business loan : Best small business line…
What Is the Loan-to-Cost Ratio: Formula & How To Calculate
The loan-to-cost (LTC) ratio is the relative comparison between the loan amount of a commercial mortgage and the total cost of a rehabilitation or construction project. The LTC ratio helps investors determine the riskiness of commercial real estate investments. It’s used primarily for two types of commercial mortgages: rehabilitation loans and construction loans. The higher…