Tips To Keep In Mind Before Applying For A Business Loan

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Whether we are talking about a start-up or an established business, every company requires funds to survive, grow and outrun the competition. The recurring needs of hiring manpower, regular equipment upgrades, or general working capital often require an excess of funds that many businesses simply do not have. A great way for a business to access these necessary funds is through a business loan.  

 Loans are a great helping hand for business owners but the process can sometimes be challenging, especially for small and medium-sized businesses. Often the loan process can be complex, time-consuming, and require a lot of effort on the part of the business owner. However, being properly prepared before applying for business financing will help you streamline the process.

 Here are some smart financial tips on business financing that you should keep in mind before applying for a business loan:

  • Assessing your business need

There are many types of business loans to choose from!  Before you apply for a loan, it is important to understand your business needs and have a plan. Your assessment should include things like the amount of capital required to meet your objective, the type of loan you desire, the timeline of the loan, what you’re planning to use the money for, and how you’re planning to pay it back. There are other key factors a business owner needs to consider as well, like monthly revenue of the business, operational cost, recurring business expenses, existing liabilities, etc. All of these factors will help determine what size of loan and payment amount a business can afford. Your loan amount should not go beyond your business revenues.

  • Maintaining a healthy credit score:

Another key financial tip is to maintain a healthy personal and business credit score. But before we discuss how to maintain a healthy credit score, let’s first review what a credit score is. A credit score is a measure of an individual’s or business’s likeliness to pay back a borrowed amount of money. The score represents numerically a person’s or business’s creditworthiness. Having a healthy credit score indicates that you are financially sound and not likely to default on repayment. Credit score is the first thing that a lender looks into. A strong credit score can help you enjoy benefits such as a lower rate of interest on your loans and even credit cards.

Before advancing business loans, lenders will not only look into the business’s credit score but also the personal credit scores of the business owners to determine the business’s eligibility for the loan. Although there are business financing options that will work for owners that have poor credit, having a healthy credit score allows for more favorable loan options like lower interest rates and longer terms. Thus, maintaining a healthy credit score is essential for acquiring business capital.

  • Comparing all the lending options

Before deciding on your bank or lender, it is wise to research all the viable options available in the market. Often there is a misconception that you can only get a loan through a bank, which is not true! In the commercial lending industry, non-bank and private financial institutions can also help you with the business financing you need.  It is greatly advised that you compare all your borrowing options to get the maximum benefits of a business loan. 

  • Checking for eligibility

Checking your eligibility is an integral step business owners should follow before applying for a business loan. You need to fulfill the eligibility criteria required by the financial institution from which you are planning to get business financing. Therefore, before submitting your loan application, it is best to check directly with the lender to understand what the qualification requirements are and if you met them. Each lender has different criteria so it is important to know exactly what the lender you are applying with is looking for. This smart financial tip can help you save time and frustration by ensuring you do not apply for a business loan that you do not qualify for. 

  • Managing your bank statements

Next to your credit scores, your business bank statements are the most important factor to be considered for applying for a business loan. Your bank statements offer insight into how you manage your business and help in determining whether or not you’ll be able to repay your loan. If your business has a shortage of funds, it is highly unlikely that you will be able to secure a loan. Lenders typically assess your most recent bank statements (the last 2 – 3 months), so as you are planning to apply for a business loan, work to ensure your recent bank statements are strong. This means showing regular deposits, cash flow (money coming in is greater than money going out), and some savings/reserves. You want to avoid things like insufficient funds, overdrafts, and unusual activity like large deposits without a clearly documented source.   

  • Gathering all required loan documents

The most important step in the process of submitting your loan application is being ready with all the required documents. To streamline the process of the loan application and make things easier for all parties involved, it is advised that you have gathered all the relevant documents prior to submitting your application. These documents may vary depending upon the lender you choose but here are some standard document requests:  

–   Identification – driver’s license/passport  

–   Business registration/articles, EIN number, and operating agreement 

–   Business and personal bank statements

–   Business and personal tax return records

–   Business financial statements

Conclusion:

In addition to all these financial tips,  it is very important to read all the loan documents prior to signing them to make sure you fully understand the details of the loan. . You should apply for a loan after weighing all requisite pros and cons, making your business credit-worthy and attractive to lenders, and assessing all the viable lending options to find the offers which are the best for you and your business. Try to communicate openly and honestly with your loan provider and make sure you don’t overcommit. 

Financing for Your Business’s Needs

One aspect that many business owners fail to realize is that every loan is different. This is actually a good thing because that means you can take advantage of financing that is customized to your unique situation. At Common Sense Capital Solutions, we have a team of dedicated financial experts to determine what the best kind of loan would be for you specifically.

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At Common Sense Capital Solutions, we believe in your business’ ability to succeed and we are dedicated to helping you. In the modern world of business, commercial finance is one of the most common tools that small business owners take advantage of to ensure the success of their business.

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Accessing Working Capital When You Need It Most

At some point, most businesses need some sort of financial boost to grow. Business term loans with Common Sense Capital Solutions can be a great option when this financial boost is needed. A term loan provides business owners with a lump sum of money that is paid back at fixed intervals, with interest, over a set period of time. Repayment periods can last from a few months up to 5 years or more and payment schedules can be a weekly, bi-weekly, or monthly basis. Interest rates also vary but can be either fixed or variable.

Is a Term Loan Suitable for Your Business?

Business term loans work great for most industries. The key factors for approval are time in business (minimum requirement of 3 months) and average monthly gross revenue (minimum requirement of $10,000). The proceeds from a business term loan can be leveraged for any and every necessary business expense including:

⦁   Purchasing equipment or inventory
⦁   Renovating an existing location or expanding to a new location
⦁   Purchasing real estate
⦁   Hiring new employees
⦁   Working capital
⦁   Refinancing existing debt

With the flexibility and easy access to term loans, they make a great tool for small businesses that want to grow.

Contract Financing Solutions to Help You Grow Your Business

Believe it or not, small businesses often bite off more than they can chew with their service contracts. As a contractor, manufacturer, or small business owner, you know that cash is often needed before any work gets started on fulfilling a contract. Because of this, many times the early work on a project comes straight out of contractor’s or manufacturer’s pocket. This can cause major cash flow issues for your business or even worse, it may hinder you for accepting the contract in the first place. If you find yourself with a large contract in place without the resources needed to fulfill it, Common Sense Capital Solutions may have the right solution for you.

Using Your Contracts as Funding Tools

Contract financing allows you to leverage the total value of your service contracts to secure immediate business capital. This could potentially be a terrific option of you’re looking to:
⦁ Take on new contracts without stressing your financial resources
⦁ Build brand loyalty by fulfilling obligations as expected
⦁ Increase your production capacity in order to sustain your anticipated growth
By eliminating the delays and headaches caused by cash flow shortages at the start of a project, Common Sense Capital Solutions can help you grow your business. If you think you could benefit from using your contacts as collateral for funding, you should give us a call today.

How Your Business Can Use An Unsecured Business Line of Credit

While financing is a great option that small business owners have at their disposal, many see taking out a loan as difficult or risky. These are reasonable concerns, but there are special kinds of financing that completely avoid these issues. Unsecured business lines of credit are designed to be a highly accessible and safe type of loan. They are beneficial for small business owners because they can be used for unexpected expenses as they appear. The other benefits of a line of credit include:

  • Higher credit for successful businesses
  • No required collateral
  • Lower rates

How Lines of Credit Work

The biggest way a line of credit is different from a traditional loan is the way it is repaid. Instead of making pre-set payments each month, you only have to pay back a portion of the amount you spent for that month. This means you do not have to make any payments if you do not take advantage of it in a given month. It also means it is much more difficult to accumulate debt with a line of credit.

Turn to Common Sense Capital Solutions

Common Sense Capital Solutions is dedicated to the success of your small business. One way to achieve success is with unsecured business lines of credit. Give us a call today to learn more about applying for a line of credit.

The Unmatched Accessibility of a Stated Income Commercial Real Estate Loan

Financing has always been one of the best tools small business owners have to ensure the success of their business. The only issue is that many small business owners feel they cannot qualify for a loan due to their poor credit score or credit history. This is especially unfortunate because those with a low credit score are often the ones who need financing the most. The solution is the stated income commercial real estate loan. This special kind of financing is designed specifically to be easy to be approved. At Common Sense Capital Solutions, we are committed to helping you get the working capital you need to make your business thrive.

How Stated Income Loans Are Unique

The biggest aspect that is different for stated income loans is the way qualification is determined. Most loans rely on credit, but stated income loans instead rely on income. If your business is making money, chances are good that you could be approved. This means a failed business in your past cannot hold your current successful business back anymore. The other requirement is that your business can cover the insurance, mortgage, and taxes of the loan. Even if you have been denied in the past, turn to Common Sense Capital Solutions if you think you could benefit from a stated income loan.

How You Can Use Your Loan

With financing, there are so many options you have to improve or secure your small business. Some of the most common uses for financing include:

  • Consolidating debt or refinancing
  • Leasing or purchasing new equipment
  • Remodeling your real estate
  • Investing in your marketing
  • Purchasing a second locations
  • Hiring more staff

Common Sense Capital Solutions believes in your small business, so give us a call today. We would be happy to answer all of your questions.

How You Can Benefit From Having a SBA-Backed Small Business Loan

In the modern business world, financing is a more common solution. However, many small business owners see financing as dangerous or inaccessible. Qualifying or repaying the loan can be tricky. However, there is a solution addressing both of these concerns. It is possible to have the Small Business Administration back your loan. This creates many benefits that makes your small business loan look appealing. Common Sense Capital Solutions wants to help you gain approval for the loan you need. Below, you’ll learn more about how you’ll receive working capital from the SBA to ensure the success of your small business.

Small Business Administration Backed Loans

One of the biggest benefits of the SBA backing your loan is ease of approval. The qualifications are lower. Because of that, less collateral is required. As a result, less paperwork required. Another significant benefit of having a SBA-backed loan is the amount of working capital gained. 7a or 504 programs provide small businesses with an amazing amount of funding. Common Sense Capital Solutions is dedicated getting you approved for a loan. We also help you through the process as well.

Using Your Small Business Loan

If you leverage your loan correctly, you can make a huge difference in your business. Also, you significantly increase the amount of income each month. This lasts even after you make payments. Some of the most common uses for financing include:

  • Investing in your marketing
  • Completing a remodel of your building
  • Purchasing new real estate to open a second location
  • Upgrading or purchasing new equipment
  • Hiring new staff or providing special training for your existing staff
  • Refinancing or consolidating debt

A loan from the SBA helps your business in many different ways. Let us show you how.

Common Sense Capital Solutions is here to help your business succeed. Obtaining a small business loan from the Small Business Association is one way we do that. Ready to get started? Call us now.

Using Purchase Order Financing to Keep
Your Business Growing

If your small business is growing rapidly, you should be aware of an issue many businesses in your position face. As you receive larger and larger clients, you may receive a client whose needs are so large, you simply cannot afford to fulfill them. If this happens, it may seem like your only option is to turn them away. In reality, you have a much better option. Purchase order financing is a special type of loan that was designed specifically for business owners in this situation. If you take advantage of order financing, you can enjoy these benefits:

  • Improve your market share
  • Short approval and processing time
  • Avoid accumulating debt
  • Avoid bad reputation
  • No lost equity

Common Sense Capital Solutions is here to provide you with the capital you need to succeed. Learn more about order financing.

How It Works

The first thing that happens when you are approved for a purchase order loan is you receive the capital you need to fill your order. You are free to focus on fulfilling your client’s expectations as best you can. When it is time for your client to pay for your services, we collect a portion of the invoice and leave the rest of the profits for you. Turn to Common Sense Capital Solutions.

Our Healthcare Financing Options for Your Practice

Small business owners have taken advantage of financing for years. It turns out this is a great option for healthcare practices as well. Because the people your practice treats have come to rely on your services, you cannot afford to close your practice down. At Common Sense Capital Solutions, we understand the important role your practice serves, that’s why we offer accessible healthcare financing options. There are many different types of financing. The different types each have their unique advantages. Some of the options to provide you with the working capital you need include:

  • Small business owners have taken advantage of financing for years.
  • Practice acquisition – Whether you are buying your first practice or just your most recent, we can help you qualify for a loan.
  • Because the people your practice treats have come to rely on your services, you cannot afford to turn them away or close your practice down
  • Patient financing – offer your clients financing options for your services if they can’t pay in full out of pocket.

If you think your practice could benefit from healthcare financing, turn to Common Sense Capital Solutions. We are dedicated to getting you approved for the most appealing loan possible. This is why our financial team always works alongside our clients to analyze their unique situation. After all, each business is different. The way we finance shouldn’t be the same. Give us a call today to see how we can help you.

Grow Your Business Using Franchise Financing

In the modern world of business, financing is a hugely accessible and versatile option that nearly all small business owners have. Many are concerned that they may accumulate debt or be unable to be approved, but a loan that suits your exact needs properly will not put business owners at risk. In reality, there are many different types of financing, each with their own unique advantages. At Common Sense Capital Solutions, our dedicated team of financial experts will work alongside you to discover the most beneficial type of financing possible. Learn more about how your business can benefit from franchise financing. 

Common Uses for Financing

When you receive working capital from Common Sense Capital Solutions, you have many options for how to leverage it. If you invest it wisely, you could significantly increase your profits. Some of the most common uses for financing include:

  • Provide specialized training for current staff or hire new staff members
  • Purchase or upgrade new equipment or repair old equipment
  • Expand to a second location with new real estate
  • Complete a remodel for your real estate
  • Increase the advertising budget
  • Refinance or consolidate debt

Common Sense Capital Solutions believes in your small business, so give us a call today. We would be happy to answer all of your questions.

Using Equipment Financing to Secure
Your Business

Your small business relies on the equipment used every day. Without them, it is much more difficult to stay operational. You should know that equipment financing is a readily available option to ensure you always have the equipment you need. Regardless of the reason, you can count on Common Sense Capital Solutions to make equipment financing a reality. We are dedicated to helping small business owners just like you get the working capital they need.

Common Sense Capital Solutions’ Equipment Financing Plans

Financing is not a simple process, but there is one aspect that maximizes your chances of having a successful loan: customization. No two loans are the same, so you should find out what financing plan suits your needs exactly. At Common Sense Capital Solutions, we always work hard to find a plan that works best for you.

  • Equipment Leasing – You can get the equipment you need for less if you lease it instead of purchasing it outright. Plus, ownership can be transferred to you after you finish payments if you enter a leaseback program.
  • Start-up Equipment – No business starts on the right foot without equipment. If you are opening your doors for the first time, learn the special financing plans available to get your start-up equipment.
  • Government Leasing Programs – Special financing options are also available for municipal entities that need new equipment.

Choosing Common Sense Capital Solutions is choosing to trust a team of financial experts that are passionate about helping small business owners just like you. When you turn to us, we will always make a point of working alongside you to determine how your loan can be as beneficial as possible. Of course we would be happy to answer any questions you have, so give us a call today.

Your Financing Options From Common
Sense Capital Solutions

If you own a small business, you should know all the options you have to ensure its continued success. One of the very best tools that business owners have at their disposal is commercial real estate financing. At Common Sense Capital Solutions, we believe in your business’ ability to succeed and grow. The key to getting the most out of a small business loan is finding a plan that fits your needs specifically. Because no two businesses are the same, no two loans should be the same either. We have a dedicated financial team that always works with our clients to determine the most beneficial financing. Learn more about the different options you have.

The Types of Loans We Offer

  • Buy And Hold Financing: There are times when commercial real estate investors need short-term capital to purchase and fix properties, and then move onto permanent financing as those properties are occupied. For these situations, we provide buy and hold financing programs. Possibilities for financing include properties such as single family houses, multifamily properties, town homes, condominiums and apartment buildings.
  • Fix and Flip Lines of Credit: Our fix and flip lines of credit, along with our fix and flip loans, are designed to help commercial real estate investors reach their goals, by providing the capital they need for the purchase and rehab of properties.
  • HUD and FHA lending options: These options are especially beneficial for owners of healthcare practices and senior housing.
  • SBA 7a and 504 loans: The most appealing loans possible come from having the Small Business Administration back your loan. We can help you apply for a SBA-backed loan.
  • Construction financing: We make it possible for you to undertake construction projects, whether you are making your first business or expanding with a new location.
  • CMBS loans: Commercial Mortgage Backed Securities offer more appealing loans. They securitize properties into a pool and then transferring them to a trust.
  • We also offer bridge loans and hard money loans.
  • Alternative loans: With so many different financing options, you can always find one to fulfill all your needs. Traditional loans simply are not for everyone. The approval requirements, processing time, and repayment options are all customizable.

Common Sense Capital Solutions is committed to making your small business a success. If you have any questions about financing or how we can help your business, we would be happy to answer them. Give us a call today to learn more.

Serve Your Customers Better With Consumer Financing

If you have ever needed to use installment payments to purchase a product, then you have likely taken advantage of consumer finance. If your business sells high value products or services, you may benefit from a consumer financing program from Common Sense Capital Solutions. This program is great for businesses that sell services or products under $10,000. We can help you by purchasing Retail Installment Contracts, Revolving Credit Agreements or even your current loans portfolio. By offering more purchasing options to your customers, you may be able to take on more customers and increase your profit margin. Our program offers such benefits as:

⦁ Financing to customers with a FICO score of 580 and above
⦁ Instant credit processing
⦁ Flexible consumer interest rates
⦁ Tiered pricing

Is Consumer Financing Right for Your Business ?

While not every business needs access to consumer finance, it is something to consider offering if your business deals with services or products that may be difficult for your customers to pay in a single transaction. Industries that are likely to benefit from this financing program include but are not limited to:

⦁ Furniture
⦁ Medical practices
⦁ Private & vocational schools
⦁ Equipment
⦁ Jewelry
⦁ And more…

If you do not yet have options for consumer finance, your business could be missing out on profits. Contact us today to learn more about this program.

The Security Gained From Accounts Receivable Financing

Small business owners need to know all the tools they have to improve their business and ensure its continued success. Of course, many see taking out a loan as a risk of accumulating debt or hard to gain approval. There are many different types of loans. They each have their own advantages. One of the most appealing types of financing that address these concerns is the accounts receivable loan. This special type of financing is designed to be accessible and safe. Turn to Common Sense Capital Solutions to learn more about your financing options.

How it Works

By financing receivables, you gain quick access to working capital, making it perfect for tackling unexpected expenses. You use an unpaid invoice as collateral. Then, when it is time for the invoice to be paid, we collect from your client instead. This means it is impossible to accumulate debt from an accounts receivable loan. Other benefits include:

  • No fixed payments
  • Shorter time to process
  • More flexible options

If you think you could benefit from financing your accounts receivable, Common Sense Capital Solutions can help you. We believe in your business’s ability to succeed. Because we are always happy to answer any and all of your questions, you should give us a call today.