So…The Bank Is Calling Your Loan
Is your bank about to call your loan?
Some banks are now demanding that some of the small business customers pay off their credit linke Balances in ful instead of making monthly payments. If customers are not able to pay they are being offered repayment loans at a much higher interest rate.
How do you know if your loan is about to be called in?
Unfortunately, your bank will generally not tell you your loan will not be called, or not renewed, until right before it takes action. How do you know if your business is at risk?
A few reasons why Banks drop small-business loans
Banks will pull loans for a number of reasons, but the most common are:
- poor financial performance by your business
- your banks own credit problems
- to impress bank regulators or new owners of the bank
What do I do if my business is at risk?
If your small business loan is at risk of being called you should contact us at Haskin Capital Group, Inc. immediately. We usually have plenty of financing options available to a small business in your position. Haskin Capital Group will help you secure the financing your business needs, so that you don’t suddenly find yourself at risk if the bank terminates your loan.
If you would like to know more about how your business can secure funding it needs, email mgellar@haskincapital.com or call 845-454-9209.
Big Banks Let Down the Small Business
Big Banks Let Down the Small Business
The big banks claim they are doing everything they can to support small businesses. They generally adopt one of two positions, either they promote their own small lending records, or they throw up their hands at the decline in small business lending and say “NO NEED”.
Big Banks Present a Misleading Picture
The large banks always present figures to demonstrate their willingness to lend. However, they usually define small business loans as loans to companies with annual revenue of $20 million or less. Under this definition , a small business loan can include a loan to a company that may have hundreds of employees.
Small Loans Remain Strong
Despite what the banks say there is a strong demand for loans among small businesses. It has been reported that as many as 36% of small businesses reported an inability to receive adequate financing.
Banks are Slow in the Delivery of Small Business Loans
Banks have a way of being slow, cumbersome and bureaucratic when it decides to lend money. Most of the time applying for a loan can takes months with no certainty of closing Haskin Capital Group, Inc. knows full well that small business loans require careful thought and creativity. Unlike the banks Haskin Capital Group, Inc. looks for ways to engineer an optimal financing solution for your small business, we deliver results quickly and efficiently.
Preserve Equity
The Wisest Entrepreneurs Know How to Preserve Equity
Maintaining Your Share Of The Profits
There have been articles published about how some entrepreneurs manage to make millions, if not billions, more than others by being careful not to sell too much of their business too soon If a business obtains venture capital early in the business’s life, it is typically at a huge cost. In exchange for this financing, the start-up’s founders will have to sell part of their company, thereby diluting their ownership. Decisions made at this stage can have wide ramifications, not only for their future success but their profits. Call for more information.
Revenue Advance Funding
Funding Option for ALL Small Business Owners
Most business owners only qualify for funding based on credit card sales, but Haskin Capital Group has created the Revenue Advance program so that all business owners qualify for financing regardless of how they collect payments from their customers. Haskin Capital Group will be able to provide you with more funding because we structure the Revenue Advance based on insurance payments, wire transfers, checks, cash deposits, credit cards and all other electronic payments. Haskin Capital Group is constantly thinking of ways to fund small business owners that our competition consistently declines.
Benefits of a Revenue Advance
- Access up to $250,000
- No Personal Guarantees or Collateral Attached
- Lender only gets paid back when you get paid by your customer
- Receive a second advance 120 days after the first advance
- Use the Money to purchase inventory, expand, purchase equipment or however you feel will best benefit your business
How does it work?
We provide you with capital based off of your monthly gross revenues and payback is based on a fixed percentage of future gross sales. We will request the most recent 6 months of Business Bank Statements to determine your Monthly Sales. We will then present you with 3-5 funding options to choose from. After YOU DECIDE which option is best for your business, we typically can wire the funds within 3 business days. Once the money is wired, we will begin collecting a small agreed upon percentage from your sales. So if business slows down, so do your payments to the lender.
You qualify if you meet the following criteria:
- Open for business for at least 3 months
- Minimum of $15,000 per Month in Sales
- Minimum of 15 Sales Transactions per Month
- No Open Bankruptcies
How much do you Qualify for? Call us Today to find out. Approvals last for 60 days, so even if you want to find out how much you qualify for it doesn’t mean you have to make an immediate decision. Call to speak with me or email me at mgellar@haskincapital.com. Kind Regards,
Marvin Gellar
President/C.E.O.
Haskin Capital Group
209 Aspen Terrace
Poughkeepsie, NY 12601
Office: (845) 454-9209
Fax: (845) 454-6108
Mobile: (914) 475-9876
Cash is King
THE old adage “cash is king” has never been so relevant.
The recent financially rally in Europe and a whisper of optimism over the state of the banks has certainly substantiated this phrase – but a simple case of semantics dictates that these three words tell a very different story. With insolvency service figures painting a bleaker picture up and down the country for today business world. Each business today that has to cease operations will have its own , but whatever the underlying cause , the crunch comes when a business grinds to a halt because of a lack of cash.
Some will have been unfortunate and hit by unforeseen circumstances- the extended wintry weather is one example. But many of these examples will, unfortunately, have been down to poor financial management, and in part cash flow. In the past many experienced business owners didn’t know the difference between cash flow and profit.
Many times you see the directors of these companies pop champagne when they had won a contract which they thought would cement the future of their business. In fact the same contract has caused the demise of the business simply because it didn’t have sufficient cash to see the contract through. This attitude is understandable considering the past stability of the economy and availability of funds through the banks. The bank manager would have been the first call when a business was in need of a financial boost. But , despite a few public floggings from the Government, accessing money through the banks was virtually leaving the bank managers finding their hands tied.
But as disheartening as this can be, there are still options.
The Asset Based Lending sector is a booming business. Using invoice (factoring or invoice discounting) can certainly fund cash flow in many cases, particularly for expanding business. Raising cash against unencumbered plant and equipment may be an alternative way to plug the funding gap. There will be occasions where this type of financing will not help. this stage it is easy option to give up and “throw in the towel”- but that has to be a last resort after the amount of effort involved in building up a business to start with.
Another option is to attract private investors. But if a company’s balance sheet is weak ore overburdened with historical debt banks are likely to be reluctant Many entrepreneurs are looking at every option to buy time or help them to restructure. One major problem, however, is that many business owners have a limited knowledge of what is available and exactly how it could work for them.
For a business which is desperately short of cash flow, the worst thing to do is…nothing. Taking independent professional advice from Haskin Capital Group will give your company more options, gives a better chance of preserving jobs and a better chance of survival and potentially becoming a sound business venture.
Real Estate Programs
Real Estate Programs
Haskin Capital Group Real Estate lending program is unlike any other. The depth our of resources allow us to provide borrowers with all points of the capital stack. From traditional senior lending and mezzanine debt to preferred and joint venture equity. Our Real Estate offerings extend nationwide and include virtually all property types
Construction Loans
Construction loans can be used for almost any construction or substantial rehabilitation project. Loan-to-cost and loan-to-value is established based upon the nature of the deal, location, borrower experience and project duration. HCGI can arrange SBA and USDA construction financing for higher leverage and greater underwriting flexibility. For large deals Haskin Capital Group may also be able to arrange construction mezzanine debt to increase a developer’s leverage. Typical Terms:
- Loan to cost generally up to 75%
- SBA and HUD loans LTC up to 90% for qualified projects.
- Terms from 12 to 36 month
- Mini-perms and construction to permanent loans available
- Interest Only
- Prime and Libor based
Permanent Loans
There are many types of permanent financing that can be arranged by HCGI. Some investor real estate loans can be done without recourse (except for standard carve outs). Optional features include early rate lock, earn out clauses, assumable loans, subordinate financing and prepayment flexibility. Typical Terms:
- Loan to vale generally up to 75%
- Terms from 3 to 30 years
- Amortizations from 20-30 years
Bridge Loans
Bridge loans are available for a variety of reasons, to give property owners a chance to reposition their assets to take advantage of changing market conditions. We have high leverage bridge loans available where exit has a high degree of certainty. Other bridge loans can take advantage of a property’s existing or potential untapped equity. Typical Terms:
- Loan to value generally up to 75%
- Terms from 12 to 36 month
- Interest Only
- Prime and Libor based
Mezzanine Debt/Preferred Equity
Mezzanine debt provides increased leverage to a transaction. It can be structured as a second lien on property or as a preferred equity. A mezzanine loan can be an integral component for a real estate owner or developer in many diverse circumstances. Typical Terms:
- Loan to value generally up to 90%
- Terms from 3 to 5 years. Longer terms can be negotiated
- Interest only or fully amortizing
- Interest can be accrued or deferred
Joint-Venture Equity
In certain cases Haskin Capital Group can provide a developer with a joint-venture partner. Our program can provide nearly100 percent of the equity required for a project depending on factors including credit quality of tenants, pre-leasing prior to funding, current cash flows and project profile
Typical Terms
- Loan to cost generally up to 95%
- Terms from 3 to 5 years. Longer terms can be negotiated
- Cash flow waterfall to determine participant payouts
- Can be done as preferred equity or pro-rata with developer promote
Property Types
Agriculture Programs
Apartment Buildings
Assisted Living Facilities
Bed and Breakfasts
Churches
Condominium Developments
Convenience Stores
Dry Cleaners
Day Care Centers
Gas Stations
Golf Courses
Hospitals
Hotels/Motels
Industrial Properties
Land
Marinas
Medical Facilities
Mixed-Use Buildings
Mobile Home Parks
Office Buildings
Owner-Occupied Properties
Outlet Centers
Parking Garages
Restaurants
Retail Centers
Self Storage Facilities
Skilled-Nursing Facilities
Special Purpose Properties
Warehouses
… and more
Peer-to-Peer Lending
Peer-to-Peer Lending: What Small Businesses Need to Know About this Alternative Financing Option
As a business and finance expert, I have helped many small- to middle-market companies secure financing through alternative lending solutions that are both intelligently structured and affordable. As someone who has been on both sides of business funding, I know that qualifying for traditional bank or cash-flow loans remains a challenge for many businesses in the current economy.
There’s been a lot of buzz lately about peer-to-peer lenders, especially as companies don’t know where to turn to for funding as the banks say “No”. While I’m not an expert in the peer-to-peer lending space, what little I do know I don’t like. These loans are just too risky. Conventional loans are turned down for good reason. With peer-to-peer lending, businesses that have been denied for a bank loan, line of credit or other more traditional source of funding, are now going to an unsophisticated group for a second try. So someone is going to get burned.
It’s one of those things that looks good at first glance – like looking online for a step-by-step appendectomy. ”Just cut here, take out the appendix and sew up.” Simple, right? And you can buy the tool kit and instruction manual for less than the hospital at DIY surgery dot com.
But some things, such as evaluating investments, making loans or performing surgery are best handled by a professional in consultation with the investor or patient. Banks and finance companies along with doctors have existed for centuries, and not just because there were no websites like prosper.com and lendingclub.com.
My best advice: If your business doesn’t fit the bank’s narrow (and narrowing) loan criteria, it’s time to think outside the box. Many small companies simply do not know what they don’t know, which is why it’s so important to get expert advisory to for rehabilitating and re-structuring their finances- instead of going it alone.
At Haskin Capital Group, we are dedicated to educating businesses to help them understand the market and determine appropriate solutions and service providers in that sector. As a lead financial arranger, we also offer speciailized advisory services so we can educate and collaborate with companies to help them understand alternative options for funding. If you are looking for financial support, call Marvin Gellar 845-454-9209.
Source: http://uscapital.squarespace.com/blog/2011/4/21/peer-to-peer-lending-what-small-businesses-need-to-know-abou.html
Refinancing Your Business Line of Credit
Refinancing Your Business Line of Credit – The Bad News
Banks across the U.S. are dramatically tightening business revolving line of credit availability and raising pricing.
Refinancing rates are higher when a borrower asks its bank to refinance its revolving line of credit. Government agencies that track various commercial lending activity, reports the average rate increase from existing line-of-credit relationships increase by 200 to 400 basis points. Presumably banks are arguing that risk is higher and supply is down, which are both true. Some banks that secure lines of credit with A/R and inventory may be worried that the value of collateral is somewhat compromised because of the general recession.
Corporate CFO’s are also indicating that the time it takes to renegotiate an extension to a business revolving line of credit has substantially lengthened and the difficulty in negotiating with creditors has become even harder.
The size of lines of credit are shrinking. Banks must report the unused portions of their revolving lines of credit as contingent liabilities which causes them some concern when regulators are looking at the bank’s liquidity. Banks have always been somewhat concerned about this contingent liability exposure, but with increased scrutiny by regulators, banks are taking the stand that they don’t want commerical borrowers to have any excess credit beyond what they need in external financing.
What this means to small and medium-sized business enterprises is that you need to start early and plan on spending considerable time negotiating a renewal of your business revolving line of credit when it comes up for renewal.
Please call Haskin Capital Group to see our New Financing Programs that can stabilize your companies growth.
Source: http://www.cfo.com/article.cfm/13940530/c_13941229?f=home_todayinfinance
Small Business Loan Types
Common Small Business Loan Uses
Our customers use a small business loan from us for a variety of purposes. Since our small business loan has 6- to 18-month terms, it is ideal for efforts that will generate revenue within the loans’ time periods. After all, paying for this year’s inventory well into next year is not healthy for your business.
Typical uses for an Haskin Capital small business loan includes inventory, equipment, temporary cash flow management (if your sales volume fluctuates), working capital supplementation, marketing to generate new business, and unexpected business opportunities that you just can’t pass up.
Get Started with Haskin Capital & see the lending options available to your business. Free & No obligation, takes just 5 minutes! Or simply call 845-454-9209
Small Business Loan – Equipment
Chances are, the business equipment you’re looking to acquire is critical to your business and its expansion, and can last you many years after your lease expires. You need to consider depreciation of your asset, leasing costs, tax benefits and a number of other variables to fairly compare lease versus buy options. Haskin Capital’s small business loan options allow you to get the equipment you need.
As a fast rule of thumb, however, if your equipment has a low obsolescence factor and depreciates over 5 to 10 years, it’s usually better to buy the asset. If the equipment is technology-based with constant upgrades in software, leasing may be the better option. A small business loan can help you on your way to getting the equipment you need.
Own with Haskin Capital Group
Haskin Capital Group, Inc. provides solutions for a small business loan with a mission to help successful small businesses grow. We are not a leasing company or a merchant cash advance company. Our small business loan terms are 18 months or less, and our loans range from $5,000 to $150,000. We provide options for a small business loan to businesses based on business performance, in addition to credit history, and offer:
- A small business loan decision in 2 business days, funding in as fast as 7 business days
- No change to your credit card processor
- A simple small business loan application
- Fixed daily payments
- Online management of your small business loan
A Small Business Loan That Haskin Can Obtain May be Right for You if:
- You’re a small, healthy business with a lot of transactions from a broad customer base
- You have steady cash flow
- You are conscientious about paying your bills (you may miss occasionally but you always catch up)
- You need a small business loan quickly
Inventory Loan
Managing your cash flow well means buying enough inventory to keep your customers happy, while selling it quickly enough to cover your costs and avoid large storage bills. In consequence, you should generally be turning over your inventory in a few months.
If you need to borrow to purchase your inventory, you should also try to match revenue with expenses. So, your inventory loan should be for months not years. Paying for this year’s inventory next year is not a healthy business practice. That’s why Our 6-month to 18-month loans might be right for you.
Buy with Help from Haskin Capital Group
Haskin Capital can obtain and provides loans with a mission to help successful small businesses grow. We step in when small businesses cannot obtain a line of credit from their traditional bank lender. We are not a merchant cash advance company. Our loans range from $5,000 to $150,000. We provide loans to small businesses based on business performance, in addition to credit history, and offer:
- A decision in 2 business days, funding in as fast as 7 business days
- No change to your credit card processor
- A simple application
- Fixed daily payments
- 6- to 18-month terms
Haskin Capital May be Right for You if:
- You’re a small, healthy business with a lot of transactions from a broad customer base
- You have steady cash flow
- You are conscientious about paying your bills (you may miss occasionally but you always catch up)
- You need a loan quickly
Businesses Still Struggling to Borrow Money
Businesses Still Struggling to Borrow Money Have Promising Financing Options Amid Slow Economic Rebound
Businesses that are having difficulty finding the optimal solution to their financing needs amid the nation’s slow economic rebound often don’t know where to turn for help. Additionally, reports that small businesses in the U.S. are struggling to borrow money from the banks may be deceptive, so they shouldn’t scare off businesses from seeking financing. For example, when stats report that borrowing is down, you have to take into consideration that growth and demand for loans is also down.
Banks are still making loans, so it’s important to not rely too heavily on statistics when looking for financing solutions for your business’s unique needs. While many businesses are either struggling to stay afloat or finding it difficult to capitalize on upcoming commercial growth opportunities, others are taking advantage of alternative financing options to secure new financing even in tough times for small business lending.
What many businesses don’t realize is the extent to which they can leverage their business assets to secure funding. Alternative financing options can help businesses unlock the value of their assets to get the backing they need when the commercial banks say ‘No.’ So for those businesses that don’t fit the bank’s narrow lending criteria, there are alternative lenders that are more specialized and ready to help business secure the funding the need.
At Haskin Capital Group, we differentiate ourselves in the market with an unusual approach designed and economically driven put us in a customer-focused, fiduciary position. Our business philosophy is centered around service and effectively providing much needed partnership directly with our clients.
Our experience is that most small businesses and even lower middle market business managers, CFO’s, and financial advisers have little knowledge of financial products and markets available for borrowing. We are dedicated to educating businesses to help them understand the market and determine appropriate service providers in that sector.
And because of the severe fragmentation in the small business lending market, it is crucial for businesses to start asking questions and forming relationships before financing is desperately needed. So as lenders, we plan to continue educate and collaborate with businesses to help them understand alternative options for funding. As more banks are saying “No” to lending, it is more important than ever for businesses to know where to look, who to speak with, and understand what pricing is appropriate for their unique situation.
Source: http://uscapital.squarespace.com/blog/2010/10/29/businesses-still-struggling-to-borrow-money-have-promising-f.html
← Older posts