Information on Commercial Lending for Business Expansion

If you are a business owner, explains Carlos Hank Rhon, who has several great ideas on how you can expand your company and gain more profits in the long run, you may have considered taking out a commercial loan for business expansion purposes. The application process for this type of loan is slightly different from the process of obtaining a loan to start a business. When applying for a business expansion loan, you already have the added benefit of being an established business owner to begin with, so therefore your commercial lender will know up front that you have a reliable income which will aid you in repaying your debt and they will feel more confident about lending you the money that you require.

A Business expansion loancan help your business to grow in a number of ways according to Carlos HankRhon. You may need to obtain the loan simply to purchase a larger office building or to build onto your current location because you have had to hire on more employees. Or you may want to use the extra funds to support your new business ideas that involve branching out and manufacturing new products or offering different services to your customers than you had in the past.

Business loans of all types whether they are meant for expansion purposes or if they are to help you with getting your business started, have a distinct advantage during the application process. Many commercial lenders are interested in helping out potential small business owners achieve their business ownership goals and therefore if they believe that their business ideas could be successful, they will be more likely to supply the borrower with the funds that they need.

The same goes with allowing an existing business owner to obtain a loan for a business expansion. If the borrower has a good enough idea that the lenders feel like they can stand behind, they will be more willing to provide the business owner with the money that they need in order to improve their current business situation. So when you are making plans to consult with a commercial lending group or a financial expert like Carlos Hank Rhon about a possible business expansion loan, you should work on a good argument as to why they should invest their time and money in your business ideas.

Having an excellent business proposal to go on and being able to provide your lenders with enough collateral to secure your loan will help you to get fully prepared for the entire application process. Making sure that you have all of the information and documents with you while you are meeting with your lender is another way that you can help to make sure your business expansion loan application goes as quickly and as smoothly as possible. Making the decision to expand your business can be a very rewarding and challenging at the same time. You must be confident enough in your new business ideas before you choose to take out such a large loan because the success of your ideas will be greatly needed when it comes time to pay the loan back.

The Process of Commercial Lending

The process of commercial lending can be very exhausting and sometimes hard to understand especially if you are not familiar with all of the requirements that are needed and other specifications that go into getting a commercial loan for your company, explains Carlos Hank Rhon. With a little bit of knowledge on the subject of commercial lending however, you do not have to go into the process blinded by a lot of terminology and hidden clauses. Applying for a commercial loan is in fact, not very different from applying for a personal loan. And once you understand what all goes into the commercial lending process, you will be more inclined to look into taking out a commercial loan for your business yourself.

The first step in the commercial lending process is to get pre-qualified for your loan. Lenders like Carlos Hank Rhon will do this by looking over your financial history and evaluating your current budget to see if you would be able to afford paying back the loan that you requested. There are several other factors that a commercial lender will take into consideration including any existing debt that you currently owe on and what the main purpose of your loan is. Once all of the details have been given and the pre-qualifying portion of the commercial lending process has been completed, it is then time to fill out the loan application papers.

There is a lot of paperwork and documentation that goes along with applying for a commercial loan. So the sooner you get started with your commercial loan application process, the better off you will be in terms of getting your loan completed and approved as quickly as possible. If you are applying for a commercial loan in order to fund a brand new business, you may need to provide the lender with additional documentation stating your plans for your new business as well as tax return information for the past three years and any personal financial statements you may have on hand, says Carlos Hank Rhon. These are just a few of the documents that commercial lenders may need to have in order to process your loan application. Your lender will let you know of any additional forms or papers they will need in order to submit your application.

Once you have completed your application, your commercial lender will then go over your credit history as well as discuss any collateral that may be used in order to help increase the amount of your loan or further your chances of getting the loan that your require. Some things that you may be able to use for collateral purposes include personal real estate and stocks and bonds that you may own. After all of the forms have been signed, considered and approved by your lender, the loan application is then sent on to the loan underwriter or the loan committee in order for them to make a final decision. It is their job to either approve or deny your loan based on all of the information and facts that you provided to your lender. 

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Things You Should Know About Preparing for Your Business Loan Application

These days in the United States there are over twenty million small businesses operating; these businesses are responsible for over half of the country’s private workforce and contribute to a large majority of the country’s gross domestic product, explains Carlos Hank Rhon. With small businesses being so successful in the work force, it is a great time for entrepreneurs who are just starting out to apply for a business loan thanks to the positive outlook that small businesses have on our nation’s economy. It would be a wise investment for a lending company to lend their money to an up-and-coming small business that has innovative ideas for products and services that may one day help them to become one of the largest corporations in the country.

Business loans can sometimes be difficult to obtain, however, if you have a strong credit history, plenty of worthwhile collateral, and a fool-proof plan for your small business then it is very likely that you will be able to get the business loan that you need in order to get your new business started, notes Carlos Hank Rhon. There are several things that you should know before you apply for a business loan that will help to increase your chances of getting the loan that you deserve. Here are a few tips that may help you along the way so that you can get started with your new business ownership.

Lenders like Carlos Hank Rhon look at your ability to repay your loan back to them as one of the main factors when it comes to allowing you to borrow their funds of your business purposes. Therefore there are several things that they take into consideration when looking at your loan application. Your credit and financial history will provide the lenders with a good overview of how you have managed to pay back loans and other expenses in the past. So it would be a good idea to look over your credit history and make sure that there are no mistakes on your credit report that may hurt your application process.

Collateral can be very helpful when it comes to applying for a business loan. Any stocks, bonds or personal real estate that you own can be used as collateral when applying for one of these loans. This can help to make up for any issues that you may have with your financial history or your credit report so that you will still be able to get the commercial loan that you need, or collateral can also help you to borrow even more money than you had initially applied for based on what your real estate property, stocks or bonds are worth. So if you own any extra real estate or have invested in stocks and bonds you should keep this information in mind when it comes to preparing for your business loan application.

Be prepared to fill out a lot of paperwork and provide plenty of information about yourself, your upcoming business plans and your financial history when you are applying for your business loan. The more information that you have on hand to provide to your lender, the faster your application process will be which will get you started on the right path to owning your own successful business.

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Business Financing and Commercial Loan Considerations

Finance is the lifeline of any business. Every businessman seeks financial help to expand their business, buy new property, or start new ventures. Obtaining a loan for financing needs is easier but to get it at lower interest rate and with flexible repayment option can be difficult, explains Carlos Hank Rhon. If you are in fix regarding which loan to go for, don’t look any further. Business financing and commercial lending involve the procurement of loans that offer financial help at very low interest rate and flexible repayment options.

Business Financing and Commercial Loans: Get Informed

Business financing and commercial loans are meant for people who want financial help for commercial utilization. That can be anything like purchasing a property, expanding your business, starting new ventures, consolidating business debts etc. if you want to buy a property, financial specialists will help you decide everything from buying a property to taking a loan. Business financing solutions are available in both forms namely secured and unsecured. Both the types of loans have their pros and cons. To avail a secured business financing and commercial loan you are supposed to furnish one of your properties as collateral with the lender. This helps you avail the loan at comparatively lower interest rate and also with flexible repayment options. The amount of loan depends upon the value of the collateral. For unsecured business financing and commercial loan one doesn’t need to put an asset as collateral, instead one has to show his/her income proof, bank papers and repayment ability. Interest rate of unsecured loan is a bit higher as there is no security for lenders against the loan amount. The loan amount also depends upon the type of business you want to start and your financial status. This loan can be availed people with bad credit history also.

Applying for Business Financing and Commercial Loans: Do Your Research

Before you apply for funding through a bank, make sure you have done enough research. With a good research you can get a better deal at lower interest rate. Internet is the best way to compare between quotes of various lenders and choose the one having low interest rate and flexible repayment option. Always apply for loan keeping in mind your repayment ability, this will save you from financial trouble and also regular payment of installment will help raise your credit status.

Advantages of Business Financing and Commercial Loans

There are various loans available to help businessman but the best amongst them is business financing and commercial loans. This is because business financing and commercial loans are available at very low interest rates compared to others. Also it’s available in both forms, secured and unsecured business financing commercial loan. Online availability ensures faster transaction and less time consuming deals. People having bad credit status can also avail business and financing commercial loans. 

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Carlos Hank Rhon - Accounting Defined

Accounting is the use of a system of terms, formulas, and other record-keeping devices that allows businesses to calculate, track, and compare their financial growth, or recession in some cases, explains  Carlos Hank Rhon. The basic concept of accounting, the accounting equation, involves recording and calculating assets of the business, liabilities, and equity and results can vary depending on whether your business utilizes either the cash or accrual accounting method. That way, financial status of the business can be assessed and understood quickly and easily. Other more in-depth concepts involved in accounting include handling investments, payroll, and auditing for the business.

Importance of Accounting

To have the right idea about the financial health of a company, accounting plays a crucial role. Information about assets, liabilities, debt and other critical factors together decide the expansion plans and future policies of a firm. Hence, a firm cannot afford to get wrong here, states  Carlos Hank Rhon.

Accounting is an educational discipline

It is taught in most colleges and universities and even in some technical school and high-school classes according to Carlos Hank Rhon. There are several levels of degrees, specialties, and government-required licenses that someone can, or must, acquire within the discipline of accounting. Accounting has been taught and practiced as a discipline for centuries, and it continues to evolve as practitioners and researchers of accounting encounter ever-changing business, financial, and legal issues. Depending on how a person intends to be involved in the accounting of a business, he or she should receive some sort of training in accounting practices, explains  Carlos Hank Rhon.  For example, accounting for big businesses may require whole departments or teams of professional accountants. On the other hand, someone simply wanting to keep track of the finances of his or her part-time business could handle the accounting with a basic knowledge of accounting concepts and formulas. The combination of accurate record keeping and accounting are essential pieces of knowledge.

Accounting is a necessary part of any business success

Accounting gives business executives a way to evaluate the financial status of the business. With this financial information, executives can compare the financial status of the company to previous fiscal periods or years, set realistic goals for future fiscal periods or years, and make decisions that depend on or have an affect on the finances of the business. Before starting any new business it is best to understand the accounting process. Also, accounting reports inform business stock-holders and employees and the general public about the financial status of the business, notes Carlos Hank Rhon. In fact, all businesses are required by law to file some sort of accounting reports to the IRS and/or other government and financial entities. Auditing, internal or external, is an important function of business. Having sound and efficient accounting practices will ensure a successful audit as well as insure your business financial success.

Choosing a Accounting and Financial Partner Wisely

Accounting, as aforementioned, is very crucial and thus it is very important to trust the same with a firm that has the necessary experience and expertise. It only works in additional advantage of the client if the accounting partner also specializes in other financial fields like forex trading, commercial lending and banking services, states Carlos Hank Rhon (active in a number of financial fields itself).

A financial partner could be an asset to a firm if chosen wisely. So, make sure you partner with the right firm, states  Carlos Hank Rhon.

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Carlos Hank Rhon - Business Investments

 Most of us don’t like risk and would be happy to live without it if we are in our comfort zone. But the truth is that risk has to be taken if one wishes to excel and grow faster. However, a number of times, we also need someone else to jump in the risk bandwagon by lending a financial hand. But sadly, here too, there is a glitch. 

Making someone invest in a business is not an easy task. To accomplish the same, one needs to convince the investor that the business is going to make money in the stipulated time. This could be done by revealing tempting details about business plan, future growth potential and minimal risk. It is important for the entrepreneur to contact only those who are looking forward to invest money, argues Carlos Hank Rhon. So, it could be said that business finance management is critical.

Business finance management can signify a giant question mark for people who want to venture in the entrepreneurial world, says Carlos Hank Rhon. As a result, many people think not just twice but a thousand times before they invest in a business. Most of the time, even people who have the capability to put up a really good business hesitate to do so, primarily because they do not recognize themselves as businessmen who are knowledgeable in business financing. What many aspiring businessmen do not know, is the fact that there are many simple business financing options available for their utilization. Some of the most popular choices are listed below:

Angel Networks

Angel Investors have gained popularity in the last decade, recalls Carlos Hank Rhon. These are the individuals or groups that are eager to invest in businesses that have just taken off. In exchange of convertible debt or ownership equity, angel investors provide capital to a start up at a higher rate of return. Due to high rate of return, entrepreneurs are usually hesitant to avail this option, states Carlos Hank Rhon.

Commercial Mortgages

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Putting up a business does not require you to maximize your expenses, explains Carlos Hank Rhon. Instead, proper business financing requires you to lessen your capital expenditure. This can be done by using commercial mortgages to finance your area of operation such as your office space, and/or other equipment pertinent in operating your business. This option allows you to have extra cash for other expense priorities or reserved funds for possible business ventures in the future. However, before opting for commercial mortgages, make sure that you have thoroughly examined various mortgage quotes available for you.

Asset Finance

This option suggests that you lease assets from a finance company, notes Carlos Hank Rhon. In this case, the leasing firm owns the properties of your business but you are allowed to “rent” the assets for business use. Aside from saving on capital expenditure, this option allows you to choose between renting new or used equipment, depending on which your business and your budget demands. Also, the availability of asset finance may prove to be beneficial when your company experiences fund inadequacy. Using this option, you can sell your assets to a finance company, and then lease the equipment for business use.

Venture Capital

If you think that you should allow yourself to explore other business ventures, if you feel that you can no longer handle the business alone, and/or if you feel that your business needs additional capital but you can no longer provide what it needs, consider venture capital. Venture Capital allows you to “cash” part of your business. This means that you sell part of your equity and control over your business in exchange for cash. Note that venture capital may open doors for business expansions as it introduces not only capital but additional help in business finance management.

Business Loans

If your company is running out of funds or if you are still on the process of starting a business, you can always run to the nearest bank and inquire about business loans. Aside from the bank however, you can look for other funding agencies. However, be sure that you have prepared a concise yet thorough and effective business proposition before you approach possible loan providers. Note that funding agencies will always ask for collateral according to Carlos Hank Rhon. Prior to your application for a business loan, be sure to have explored available business loan options in your area. Carefully examine the interest they demand, the type and amount of collateral they require, the payment terms available, the timeframe for the payment, and the amount you can loan.

carlos-hank-rhon-business-ideas

Hence, there are a number of options available with businessmen to choose from with different conditions in each case, argues Carlos Hank Rhon. Hence, one needs to decide whether passing some amount of control and equity in someone else-s hands is required or just commercial mortgage would do. This is where experience of a financial advisor like Carlos Hank Rhon comes handy.

Content Source:  Carlos Hank Rhon - Business Investments

Cash Versus Accrual Accounting

When referring to accounting methods, we are talking about the ways in which financial records are kept by businesses, which are used to make their financial reports for each quarter, explains Carlos Hank Rhon. You can use both accrual and cash methods for keeping records of financial transactions for business. If you run a small business, it would help you to determine what method you want to take advantage of, factoring in sales volumes, the presence of customer credit, and IRS tax requirements.

Although these records are needed by law, they can also be useful for business owners when it comes to business decisions based on aspects of financial situations, explains Carlos Hank Rhon. The method chosen by small business owners is important because although the technique can be changed at a later date it can be difficult to make the change over. With this in mind small business owners need to really think about which technique most suits their business.

When you use the cash method for accounting records, you will record income and expenses as it is transferred from your accounts in real time – instead of writing down when you made the commitment to spend money, you write down when it actually left your hands. Also, you write down when you actually received money, instead of when you intended to take money in. This makes it possible to delay billing and expedite payments so you do not have to pay income taxes on some of it until the next business year.

You can get a lot of benefits with the cash method; namely, compared to accrual method, it is a far easier to look at, it gives you a much better idea of how your finances are doing, and you do not have to get taxed on certain expenses till the following year. Due to the fact that you are altering the times at which you pay and take in money, though, you might tend to adjust details of how your company is doing financially, which can be misleading. What’s more, accrual methods work harder to show when you actually spend and took in money, notes Carlos Hank Rhon.

The main drawback to the accrual technique is the fact you may be taxed on income before you actually have the money, although this technique offers a far more accurate image of your businesses financial performance over the long term in comparison to the cash technique. Expenses are recorded when they are sustained and revenue is recorded as it is made, rather than when money is handed over. For example, accounts receivable will be included in this method even though you have not yet received the payment.

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