Your Risks
Step 1:
In your business plan, state what risks and capital you are planning to invest. Showing that you are willing to risk your own money and time helps investors see that you are also taking a risk with your business. It is much like purchasing a home; the more you put into the down payment, the more likely you are to pay back the loan because you are taking too much of a risk to lose the home. When you invest your own money and assets, you show investors that you are also willing to put your neck out, and that you believe in the business enough to invest your own money.
Be Realistic
Step 1:
When writing a business plan to secure a loan, you'll instinctively want to point out all of the pros of your business plan and emphasize how successful you'll be. However, investors need to look at your business plan from all sides, which means you'll need to do some solid research about your competition, potential flaws in the business and what plans you have for investors if the business fails. Although you want your company to be a success, you need to take into account what would happen if it is not. That shows insight, thought and planning on your side, convincing investors you are savvy in business and a good investment overall.
Start-Up Capital
Step 1:
When writing your business plan, research how much capital you'll need to get started and for the first few months of operation, or until you start turning a profit. You'll need an exact figure, not an estimate, to show lenders exactly how much start-up capital you'll need. Include information such as how many investors you're looking for and what kind of return they can expect to see, and when. The more informative you are, the more likely you'll be able to get a loan for your business.
Friday, August 21, 2009
LENDING SOLUTIONS
Where to Get Them?
Home improvement loans are available at most savings and loan associations, mortgage banks, and commercial banks. Interest rates and terms may vary considerably from lender to lender.
Typically, interest rates are adjustable, but some fixed rates are available. We recommend that you talk to several lenders, compare interest rates, and certainly ask about obtaining a fixed rate.
Bad Credit?
FHA home improvement loans (discussed earlier) may be available to you even if you have poor credit and no equity in your home. You may be able to borrow as much as $25,000 to make improvements on your home. This is a big help for homeowners who have credit problems or have seen the market value of their real estate plunge below their mortgage balance. These borrowers would probably not qualify for a home equity loan or second mortgage.
Rapid Funding?
Under the FHA home improvement loan program (discussed previously) funding can be obtained within 7 to 10 days. A second mortgage or home equity line could take 30 to 45 days. This could make a big difference to you if your home improvement loan is funding repair of a leaking roof or septic system.
What if you don't have any equity?
You may be able to get a home improvement loan even if you do not have any equity in your home. The Federal Housing Authority (FHA), a federally sponsored agency, manages a government insured home improvement loan program. No appraisal is required, and you can borrow under the FHA program whether or not you have any equity. Other benefits of the plan include fixed interest rates, up to 20-year terms and quick funding (7 to 10 days). Ask your lender about FHA Title 1 Home Improvement Loans. Typically, the bank will require an appraisal of your home to determine the value of your equity. Most lenders will loan you more than the value of the equity in your home on the assumption that the capital improvements will increase the value of your home.
Tax Deductible? Interest on home improvement loans secured by your primary or secondary residence is generally deductible as long as the total of all mortgage and home improvement loans secured by your primary or secondary residences does not exceed $1 million ($500,000 if you are married and filing a separate return).
LowerMyBills.com will help you find a loan for your home improvement needs. They can also help you with other loans, such as home purchase and mortgage refinancing. If you currently own a home, your loan program may be outdated.
.FHA Loans
.Home Improvement Loans
.Refinancing
.Buy a New Home
1st Time Home buyers
.Free Service
Home improvement loans are available at most savings and loan associations, mortgage banks, and commercial banks. Interest rates and terms may vary considerably from lender to lender.
Typically, interest rates are adjustable, but some fixed rates are available. We recommend that you talk to several lenders, compare interest rates, and certainly ask about obtaining a fixed rate.
Bad Credit?
FHA home improvement loans (discussed earlier) may be available to you even if you have poor credit and no equity in your home. You may be able to borrow as much as $25,000 to make improvements on your home. This is a big help for homeowners who have credit problems or have seen the market value of their real estate plunge below their mortgage balance. These borrowers would probably not qualify for a home equity loan or second mortgage.
Rapid Funding?
Under the FHA home improvement loan program (discussed previously) funding can be obtained within 7 to 10 days. A second mortgage or home equity line could take 30 to 45 days. This could make a big difference to you if your home improvement loan is funding repair of a leaking roof or septic system.
What if you don't have any equity?
You may be able to get a home improvement loan even if you do not have any equity in your home. The Federal Housing Authority (FHA), a federally sponsored agency, manages a government insured home improvement loan program. No appraisal is required, and you can borrow under the FHA program whether or not you have any equity. Other benefits of the plan include fixed interest rates, up to 20-year terms and quick funding (7 to 10 days). Ask your lender about FHA Title 1 Home Improvement Loans. Typically, the bank will require an appraisal of your home to determine the value of your equity. Most lenders will loan you more than the value of the equity in your home on the assumption that the capital improvements will increase the value of your home.
Tax Deductible? Interest on home improvement loans secured by your primary or secondary residence is generally deductible as long as the total of all mortgage and home improvement loans secured by your primary or secondary residences does not exceed $1 million ($500,000 if you are married and filing a separate return).
LowerMyBills.com will help you find a loan for your home improvement needs. They can also help you with other loans, such as home purchase and mortgage refinancing. If you currently own a home, your loan program may be outdated.
.FHA Loans
.Home Improvement Loans
.Refinancing
.Buy a New Home
1st Time Home buyers
.Free Service
Subscribe to:
Posts (Atom)