Tips for Landing Commercial Loans

Commercial loans are all about risk. Lenders are looking for some very specific criteria before they are willing to approve a loan application.

Commercial loans are more difficult to get than consumer loans because they are often for a much larger dollar amount. Lenders are in business to make money and that means that they must be very selective when lending a large sum of money. Understanding the criteria that lenders use to evaluate applicants and why they have these standards will help you to tailor your documentation to these criteria and show lenders all of the right information about your business.

Lenders are first and foremost concerned with your ability to repay the loan that you are requesting. They want to see long term documentation in the form of profit and loss statements, bank statements and tax returns to demonstrate that your business is financially stable. The might also want to see documentation about other credit which has been extended to your business. This could be in equipment rental, from a supplier of materials, from a property that has been leased or from a vendor. Lenders also favor a borrower who has some cash in savings to cover expenses in the event of a slowdown in business and revenue.

The next big interest for a lender is that the commercial property that you are purchasing has a value greater than the loan which you are requesting. This is because the property will serve as collateral for the loan. In the event that you default on the loan, the lender will take possession of the property and sell it to cover the outstanding balance of your loan. In most cases the loan will only be approved for about 80% of the property’s current value. This is due to the volatility of commercial property values. Having that instant equity in the property assures the lender that even if the property value drops, the loan will still be adequately secured.

Becoming a Personal Guarantor

In some cases a business entity does not have sufficient credit history to demonstrate financial stability. When that is the case commercial loans are secured by a personal guarantor which is normally the owner of the business. The owner needs to be able to demonstrate to the lender that their personal assets and money can be used to cover the loan payments. Again, the lender will need to see documents including bank statements, tax returns and personal net worth statements to verify the guarantor’s finances.

Understand the Lenders Goal

In almost every case, a lender is simply looking at numbers to determine if a loan applicant is a good risk. Knowing this information, it is critical that you show repeatedly that the business is financially stable, has a strong and steady stream of revenue and that you are also financially stable. In addition showing that the business has sufficient cash reserves to bridge a short term cash flow issue will give the lender added confidence in your ability to repay the loan that you are requesting. Approval for commercial loans is based on ability to repay the loan and the financial stability of the business in almost all cases.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Tips to Obtaining Hard Money Loans Fast

Hard money loans are used for short-term projects, usually ranging from as little as 30 days to 5 years. But these loans also come with higher interest rates. But if you need to get extra finances quickly, this type of funding is the right choice for you.

Fast approvals are usually quite easy when it comes to hard money loans. On top of quick approvals, these loans also come with high flexibility and less documentation is required for approval. Usually they are used as a last resort when unable to get a mortgage, but it can be well worth it.

If you are looking to finance a real estate investment, this type of funding is very beneficial in its own ways. The application process is much shorter compared to other loans. Financial history of course does play a role, but other factors come into play as well. Many lenders aren’t concerned with the present value. Their main concern is to see that in a short time, they will be able to make their money back on the investment, including interest.

Since lenders are looking more at the final project, making plans for the property plays a big part and can help you get hard money loans even faster. Most of the time, funding is provided in just a couple of weeks. But if need be, you sometimes can get the funds as little as just a few days, all depending on the lender and certain circumstances.

The first thing to do to obtain a loan quickly is to gather all of the important documentation.

Gathering all of the important documentation and information needed for lenders is one of the most basic factors for a speedy process. Things that lenders are looking for include: what kind of property you are looking to invest in (residential, commercial, industrial or land), the estimated value of the property, the requested loan amount and how the loan with be paid back (this includes the terms of loan, the length and monthly payments).

Not only is the process of getting funds quick, so is the application.

Unlike other loans, hard money loans come with much easier applications. In fact, the application is only 5 pages long. The entire process will even go quicker if you are able to present all of the information that the lender needs sooner rather than later. This is why organization of all of your documents and plans come in handy.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Services and Storage in a Fulfillment Company

Order Fulfillment companies--What to Expect

When the moment is right for you and your company to work with a fulfillment company to complete a certain function, make certain they are the right company for you and will represent your company well. Below are the 4 components that make a fulfillment company worth your money and time.

They are people, expertise, service, and storage.

Individuals that make up the fulfillment company you are looking into are an essential tool to take into consideration. You require people with creativity, tough work ethic, and innovative thoughts in order to succeed. The target of a fulfillment company is to bring new concepts to the table and to improve effectiveness and efficiency.

The next component is expertise. Participants of the fulfillment company should possess a strong proficiency in the field they are operating in. Today's business world is really competitive, and one of the points that divide mediocre companies from great companies is the competence of their employees. The experts could upstart your business by providing you new concepts and improving a few of your present strategies.

Services and Storage in a Fulfillment Company

The service a fulfillment company offers is a crucial factor to the success of your business. You undoubtedly prefer a warehouse that functions the fastest and one of the most efficiently while trying to spare time and cash. The system of operations a company utilizes could either make or break the company, so be prudent when setting your expectations.

The last element is space. You need room in order to be able to execute your business successfully.

You can easily utilize a fulfillment company effectively when you have all four of these elements.

Helpful Hints for Switching Order Fulfillment Services

Changing Order Fulfillment Companies

If you and your order fulfillment company have been together for too long, maybe it’s time to take a break. Sure, it can be a tough decision to make…these guys already know the ins and outs of your business, the bulk of your products, your customers, etc. But, if you aren’t seeing the results you had initially desired, you are throwing your money away. Here a few tips to keep in mind when considering a change in order fulfillment services.

Helpful Hints for Switching Order Fulfillment Services

 

1. Have a plan in mind. You need to have another order fulfillment company ready and waiting before you give your current fulfillment company the news. Make sure the new company is equipped to handle your business, customers, and products. Also, keep in mind that location is key—you need a fulfillment warehouse that is close to the bulk of your customers.

2. During the transition, be prepare to supply data. The transition from one fulfillment company to another likely will be a bit of a hassle, so you need to be prepared to share as much data as possible. Your new fulfillment company will want information such as: demand history and saels forecast, customer locations, sales information (how many items are sold on average per order?), and information about your inventory. Hang on to your data with your current order fulfillment company…it may come in handy.

3. Find ways the new fulfillment company will save you money. Unless the current company you are with is a total train wreck, the entire reason for switching is so that you can save money. It simply isn’t worth the hassle if you aren’t going to see better results. Ask the new order fulfillment company how they plan to save you money, especially based on the numbers you give them of your current outsourcing. They may even split the expense of the transfer with you.

4. Make the transition as smooth as possible. Don’t end on bad terms with your current company, but make the transition quickly. Fulfill your contract, inform the manager of your decision to switch, and get started with your new company as soon as possible. Make sure your customer service does not suffer during this process.

The Importance of Improvement in Order Fulfillment

Is Your Order Fulfillment Company Striving for Excellence?

Sure, you don’t want to be that finicky business owner that micromanages everybody. Nobody wants to be that guy. However, it becomes necessary to take a step back and reevaluate your processes occasionally to make sure everyone is doing their job. If you’re order fulfillment company isn’t reaching for the stars, you may need to get rid of them and find a new one. 

The Importance of Improvement in Order Fulfillment

The importance of continuous improvement cannot be under-estimated in any order fulfillment company. So, if you’re just reviewing the statistical data your current order fulfillment company is supplying you with, you may not be doing enough to maintain quality. Here are a few things to keep in mind as you make sure the company you are outsourcing your fulfillment needs to is doing the best they are capable of.

·         Check your customer reviews. If you’re selling on Amazon, Ebay, or your own site, you need to know what customers are saying about you. Hopefully, you can get good feedback on your products this way, but also on your service. Since the bulk of your customer service is coming from order fulfillment services, pay close attention to anything customers say about that. Another key component is shipping speed. Customers generally have no hesitation when it comes to complaining about shipping speed, so take special note of anything they say about that.

·         Check in with your order fulfillment company’s warehouse to make sure they are providing adequate security for your products. If your inventory numbers don’t seem quite right, it never hurts to just stop in for a quick visit to monitor the process. 

·         Hold weekly or monthly meetings with a member of your order fulfillment team, just to let them know of your needs and expectations. This will also help you get a feel for the processes of how things are getting done. 

·         Be a team player. No company is perfect—not even yours. Don’t be too hard on your fulfillment company, and allow them to do their job. If managing them is taking as much of your effort as it would to just do the job yourself, you need to develop some trust. Keep in mind that fulfillment companies hire a team of employees who specialize in either processing orders, packing and shipping goods, or dealing with customers. You do your job and let them do theirs. 

As long as you and your order fulfillment company have a mutual understanding about what is expected of them, everything should be fine. Continue to strive for excellence and watch your company grow.

Why hire on additional employees to your company while you can hire an order fulfillment company for less?

Can’t keep up with incoming customer orders? Seek an order fulfillment company for help

It’s nice when you are receiving orders from clients and new clients; however, if you don’t have enough employees to take those calls then it’s not so nice. When this happens you may encounter customer dissatisfaction, lost sales opportunities, and a regressing customer service reputation. Order volume can outpace your company’s growth as well. To solve these problems, you could hire an order fulfillment company to help you compensate for those customers who became dissatisfied by being on hold for too long.

Order fulfillment companies are designed to support the number of orders that come in through direct contact, email, and other means of communications.

Why hire on additional employees to your company while you can hire an order fulfillment company for less?

When you are at the peak of your prime business time (example: retailers and Christmas), you have two options: 1- hire on additional employees, or 2- hire an order fulfillment company. You might be surprised to find that hiring option 2 is probably less expensive and possibly more effective. Order fulfillment companies help you to meet your demands by providing an extra call center. This ultimately will assist you by balancing out the number of calls lost due to the inability of time to handle their requests. 

It would be wise to look on the web to perform some research before you agree to go with any company you may find. They are all fairly competitive with each other, but you will find what you are looking for.

Order fulfillment companies can save you money

Seeking an order fulfillment company is key to turning failure to success

You need to make sure have enough staff to handle your operations. If you are under or over staffed, then this can lead to all sorts of problems. In both occasions, customer dissatisfaction, lost sales opportunities, and a regressing customer service reputation can occur and you are a dying business. You can avoid such tragedies with an order fulfillment company. Order volume can outpace your company’s growth if you are not careful. Be aware and keep track of growing trends of the market you are targeting. Be articulate when forecasting as to know what to expect.

Order fulfillment companies are designed to support the number of orders that come in through direct contact, email, and other means of communications.

Order fulfillment companies can save you money

If you are looking for someone who can learn a specific task quickly and effectively, then you you may want to consider hiring an order fulfillment company. It just may be one of the best decisions you can ever make. An example of when you might want to hire an order fulfillment company if you are a retailer is during the Christmas season. As you know, this is the peak season for buyers and they come in large quantities. You want to make sure you have enough staff to handle the extra transactions and orders that come in.  

Order fulfillment companies help you to meet your demands by providing an extra call center. This ultimately will assist you by balancing out the number of calls lost due to the inability of time to handle their requests.

A Few Ways to Save Money on Order Fulfillment

Cut Costs on Order Fulfillment

If you’ve recently outsourced to an order fulfillment company, hopefully you have seen effective results in your business. However, did you know that there are even more ways to cut costs even after you have outsourced?

Lately, online shopping has been so incredibly easy that customers are doing much more of it. However, with lowering shipping costs (for some companies) customers tend to be buying smaller amounts of goods at a time but with increasing frequency. That means customers aren’t always buying into the “bundle” deals, but rather are buying what they want exactly when they want it. Undoubtedly, this is great for your company, but it sends your shipping costs through the roof!

A Few Ways to Save Money on Order Fulfillment

 

Here are a few ways you can slash those costs by using your order fulfillment company.
1. Buy your packing materials in bulk. If you’re already outsourcing with a fulfillment company, hopefully they are already doing this for you. But, if you’re not, you can buy your shipping products and packages such as tape, bubble wrap, and boxes in bulk. Stock up when they are on sale and try to buy from the same dealer all the time so they will cut you deals.

2. Ship on specific days. You can cut costs to your customers by offering them free or reduced shipping, but letting them know that it may be a few extra days for their package arrives. If you process multiple orders within the same time frame, you can ship them all out at once and save money in that way.

3. Outsource, outsource, outsource. Don’t take it all on yourself to run a perfect company. Allow order fulfillment companies to do the grunt work and reap the benefits of reduced shipping costs and warehouse storage fees.

These are just a few ways that order fulfillment companies can save your company money. However, there are many more benefits available to your ecommerce business than this. Do your research and find a company that is in a good central location to the bulk of your customers and grow your business today!