October is Women's Small Business Month, giving us all a reason to celebrate the successes of female entrepreneurs and honor the legacies of all women who are carving a path in the business world. This month Community Business Finance is excited to feature stories of inspiring women in business and the successes they achieved with financing through the 504 Loan Program.
Are you prepared to approach lenders for a business loan? One of the first things a potential lender will ask to see is your business plan. In fact, it will be impossible to secure most loans without one. Community Business Finance has touted the importance of a business plan before, but it is not just another hoop to jump through on the road to funding. It is a living document that shows investors, advisors and lenders the you are serious about making your business successful.
Alexander Graham Bell once said, "Before anything else, preparation is the key to success." This applies to any aspect of life, but is especially true in business. For small business owners seeking financing for expansion or starting a business, being well prepared for the application process can mean the difference between success and failure. Fortunately, a powerful ally exists in Small Business Development Centers (SBDCs).
Community Business Finance's 504 Loan Program is specifically designed for purchasing property or equipment with a low fixed interest rate and as little as 10% down. However, the SBA classifies some properties as a "special purpose property," which requires a 15% down payment on 504 loans. Even though borrowers planning to buy a special purpose property should be prepared for this additional expense, it can still be a much lower down payment than conventional lenders require.
When searching for business financing, there are many aspects of a loan that can vary widely from one lending institution to the next. Interest rates, amortization schedules, and fees are just a few of the conditions that differ between offers. Down payment requirements can range from 10% all the way to 25 or even 30%! Borrowers might expect this from banks and commercial lenders, but differences can be found when comparing SBA loans, as well.
Do you need a quick estimate for a 504 loan? Community Business Finance has a mobile website that allows both our lending partners and borrowers to get faster estimates for our 504 Loan Program. Our mobile site allows users to get an estimate on a 504 loan via any smart phone from anywhere at any time. This estimate can then be immediately emailed to anyone in .pdf format. This means an estimate is easy to get and easy to share!
After 10 years in business, Community Business Finance has helped many different businesses with a variety of financial needs. However, one goal remains constant for each borrower: an affordable loan. We recently helped a business owner purchase a new facility that simply wasn't possible with a conventional loan.
August 4th was Startup Day Across America, when we celebrate entrepreneurs and connect them with elected officials to discuss the challenges that new companies face. Entrepreneurs are crucial to both local and national economic growth. For over 30 years, startups have created an average of 1.5 million jobs per year, and Texas ranks fifth highest on the Kauffman Index of Growth Entrepreneurship.
Community Business Finance's 504 Loan Program has many advantages over a conventional loan. For businesses seeking property or equipment loans, finding the lowest interest rate seems like the best move. However, bear in mind that the interest rate is only one aspect of your loan contract. Therefore, the loan with the lowest interest rate might not actually be the best loan for your business. Let's examine the differences between conventional loans and 504 loans.
As the summer temperatures keep rising, so does our energy consumption, which can make staying cool on the Gulf Coast a costly endeavor. Reducing your company's energy consumption is a surefire way to lower operational expenses without impacting quality or productivity.