The Loan Consultants, Inc.

Money For commercial Business Only

This is not a criticism of banks, but is rather a commentary.  The financing needs of growing businesses far exceed the capability, given that banks are lending depositor’s dollars.  Many non–bank financing products greatly exceed the capability of bank loans when financing of today’s small businesses.

Working with BFG Associates will help you to replace bank financing with a selection of non–bank financing products, enabling companies to perform and grow as never before. In time, your income statement and balance sheet will show the difference.

Also, the bank’s loan documentation may well contain provisions that make the collateral on one financing, the collateral for all other financings.  If a loan or lease goes into default, all the financings at that bank, including equipment leases, go into default.

All financings are accelerated, which could easily trigger a liquidation of the entire company.  Spread your financing needs around, rather than limiting itself only to one bank.

If you see advertisements for lenders offering extremely low rates, don't be misled. Most of the time these very low rates refer to the starting rate on an adjustable rate mortgage or graduated payment mortgage. In other cases, the rate advertised may be for a balloon loan. This is a loan where the remaining balance will have to be paid off early. An example of this is called a 30 due in 5. In this type of loan your payments are based on a 30-year term to make them affordable.

The remaining balance of the loan however, must be paid off at the end of the 5th year. This means that you will probably have to refinance the loan or sell the house at the end of 5 years to satisfy the debt. Locking in your rate or point at the time of application or during the processing of your loan will keep the rate and/or points from changing until settlement or closing. Ask if there is a fee to lock-in the rate and whether the fee reduces the amount you have to pay for points. Find out how long the lock-in is good, what happens if it expires and whether the lock-in fee is refundable if your application is rejected.

Finding business financing that you can operate with for the next 30 years is a serious business. Ask about alternative kinds of business loans in your area. Compare rates, down payments, and closing costs among different types of lenders. Here is where a Business Finance Consultant can save you time and money.

There is no single nationwide finance rate; interest rates can vary according to the amount of the business loan, the length of the loan and from lender to lender. Look at the entire package that's being offered, including the fine print about penalties and assumptions. The more knowledgeable you are about the loan process, there will be fewer surprises in store for you at closing.