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weeks ago I closed three (3) franchise loans. Now three (3) commercial
closings in one week is big. But three (3) franchise START-UP loan
closings in one week is off the chart. This was three (3) loans for the
same franchise...a newer franchise system to the marketplace called
They closed with three (3) DIFFERENT lenders. Why they
closed with different lenders will teach you a lot about SBA loans and
why we are so good with them. You see, many people feel like if they
apply for an SBA loan with one lender and get denied, that they can not
get an SBA loan. The truth is, it was the lender, not the SBA, that
denied the loan. That is where we come in often closing that loan with
the same SBA rates they were hoping to get from the lender that denied
them, we just used a different lender. We have 100 SBA lenders in our
database. My favorite lender approved one of the 3 loans that closed but
passed on the other two. I then had to determine the most likely lender
to close the other two. You see, all lenders have tendencies....some
are all about the credit, some are all about the collateral. So I had to
look at the loans and determine which lender would be most likely to do
them, and the two clients had very different profiles-and so I had to
take them to different lenders and that is how we got them approved and
ultimately closed. What made these ESPECIALLY DIFFICULT was that it was a
newer franchise company to the market-not an established brand.
Burgerim first came to me they had two (2) locations open and wanted to
expand nationally. I have now closed 20 loans for them and they are on
there way to 100 stores, possibly by the end of this year. When I first
took them on no one would fund them as they were an unknown. I have THE
BEST knowledge and most EXPANSIVE lender sources in the country and can
help ANY franchise expand their business. IF you are thinking of
starting your own franchise business, or you have been denied by a bank
for funding, give me a call TODAY at 512--650-8630.
I close more franchise loans then any broker in the country and I
remain THE PLACE TO GO WHEN THE BANKS SAY NO! Give me a call today at 512-650-8630.
Karen Schimpf Commercial Capital, Ltd. O: 512-650-8630C: 512-354-5949 E: KarenSchimpf at gmail.com www.linkedin.com/in/karenschimpf/ blog: http://bizloansconnections.com/
, SBA began to take applications for the new 504 Refinance
program. The program allows small businesses that own their properties
to refinance with low fixed rates in the 4's and 5's. The Cash out for eligible business expenses up to 85% of the appraised property value (business expenses are limited to 25% of appraised value), EVEN SBA debt can be refinanced! The true benefit will be in the
amortization that will amortize these loans over a 20-23 year blended
Let me give you an example. John bought the property his
business is in 10 years ago for $800,000. At the time, he put down 25%
and took out a $600,000 loan at 5.5% with a 20 year amortization from a
local bank. His current payment is $4127 a month. After 10 years he
still owes $450,000. His business has done well but even though his
sales have stayed up, he is netting less than before as inflation and
competition have eaten at his profits. Over the years, he had to
borrower on various loans and credit cards to purchase business assets
or meet cash flow needs. Let's say he owes $100,000 on various lines and
cards and his payments on these various lines are roughly $2000 a
month. John's debt looks like this
$450,000 mortgage loan
$100,000 business debt
$550,000 total debt. And his payments on that debt equal $6,127.
his building has appreciated and is worth $1,000,000. The 504 Refinance
allows cash out up to 25% of the value of the building for business
debt and even upcoming debts for the next 18 months like unpaid
payables, payroll, etc. We could refinance him and have it look like
$450,000 Mortgage payoff
+$100,000 business debt
+$150,000 working capital, cash for business use
$700,000 new mortgage.
debt would be a $400,000 first and a $300,000 second from the SBA. The
blended rate on the two loans would be roughly 5.1% and the blended
amortization would be 23 years.
HIS NEW PAYMENT FOR THE 504
REFINANCE OF BOTH THE FIRST AND THE SECOND WILL ONLY BE $4312! Not only
would he save almost $2000 a month-a huge savings for a small business,
he would get $150,000 in cash to use for his business-essentially free
of payments! WOW!
There is not enough space in this column to
share all the nuances of the program and refinances of just mortgage
debt and closing costs can go all the way up to 90%! EVEN ON HOTELS AND
SPECIAL USE PROPERTIES! A very hot program. IF YOU OR SOMEONE YOU KNOW
OWNS A BUSINESS AND THE BUILDING THE BUSINESS IS IN, GIVE US A CALL AT
(512)650-8630 TO SEE IF THIS FINANCING PROGRAM WORKS FOR YOU. Usually
within just a few minutes I can determine the savings and the potential
benefit. It costs nothing to have me pre-qualify so give me a call today
at (512)650-8630. Talk to you soon!
P.S. Business that owns the building it is in has an opportunity to refinance
that debt with LONG TERM FIXED RATES in the 4's or low 5's AND pull
CASH OUT at the LOWEST PAYMENTS POSSIBLE. It is a GREAT opportunity.
CALL ME TODAY TO SEE IF YOU QUALIFY AND TO ANSWER ANY QUESTIONS YOU MAY
HAVE at (512)650-8630 ! CALL TODAY!