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Answer Upon - Commercial Loan Difficulties - Solutions for Auto Services Properties
There are several features of a successful entrepreneur that contribute to his/her essential success. The following three characteristics are the definitive features of what makes for Entrepreneurial success.All men and women of action have one thing in common. They observe before they act. In the realm of the entrepreneur this capacity to act and to formulate correct paths to profit before taking steps is essential. Specifically we are talking about vision.1) Vision is a simple concept yet can be misunderstood. It is often a label we
COMMERCIAL LOAN DIFFICULTY: SHORT-TERM FINANCING?
One of the primary underlying reasons for a high failure rate among many auto services businesses is directly due to the commercial borrower being forced into short-term commercial financing when long-term commercial financing is essential to the health of the business investment. Businesses s
Most clinics lose an average of 20% of their revenue due to missed appointments. Lost revenue may not be the largest problem clinics face due to no-shows. Other problems span health damage, patient liability risks, reduced accessibility, and impeded resident education. Rigorous no-show management methods utilizing powerful vericle-like technologies, which integrate scheduling and billing data, reduce no-show rates and improve associated revenues by more than 50%. No-Show Frequency DistributionNo-show rates average at about 2
There are many businesses falling into the auto services category, and they generally involve activities that include automobile body repairing and painting. These properties are viewed as riskier loans by most traditional lenders. As a prime example of how non-traditional commercial lenders look at difficult commercial loan situations differently, auto services properties have been moved to a less risky underwriting category by several of these lenders. Because of this, it will usually be beneficial for owners of auto services businesses to work with a non-traditional lender because of the better commercial financing terms.
COMMERCIAL LOAN DIFFICULTY: ENVIRONMENTAL DIFFICULTIES?
There are unique environmental issues for auto services properties that frequently produce difficulties in obtaining a commercial real estate loan from a traditional commercial lender. Properties involving environmental issues will often be politely declined by a traditional commercial lender. Auto services and related businesses are frequently mistreated in this manner. If such commercial mortgages are not declined outright, then typically a Phase I/II environmental report will be required (which can easily add $15,000 to $20,000 or more to the cost of the loan if a Phase II report is needed). The commercial borrower could end up paying this entire cost even if the report produces findings that result in commercial loan disapproval. If the cost for a Phase I/II environmental report wasn't already a sufficiently negative issue, this requirement also adds substantial time to the commercial loan process. As a practical time-saving and cost reduction strategy for addressing this unique but solvable problem, an environmental insurance fee can be used to meet the special commercial loan needs of environmentally-sensitive properties (thus frequently avoiding the need for Phase I/II environmental reports). Using this strategy, a non-traditional lender can usually get an environmental approval in 5-7 days.
COMMERCIAL LOAN DIFFICULTY: SHORT-TERM FINANCING?
One of the primary underlying reasons for a high failure rate among many auto services businesses is directly due to the commercial borrower being forced into short-term commercial financing when long-term commercial financing is essential to the health of the business investment. Businesses s
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COMMERCIAL LOAN DIFFICULTY: ENVIRONMENTAL DIFFICULTIES?
There are unique environmental issues for auto services properties that frequently produce difficulties in obtaining a commercial real estate loan from a traditional commercial lender. Properties involving environmental issues will often be politely declined by a traditional commercial lender. Auto services and related businesses are frequently mistreated in this manner. If such commercial mortgages are not declined outright, then typically a Phase I/II environmental report will be required (which can easily add $15,000 to $20,000 or more to the cost of the loan if a Phase II report is needed). The commercial borrower could end up paying this entire cost even if the report produces findings that result in commercial loan disapproval. If the cost for a Phase I/II environmental report wasn't already a sufficiently negative issue, this requirement also adds substantial time to the commercial loan process. As a practical time-saving and cost reduction strategy for addressing this unique but solvable problem, an environmental insurance fee can be used to meet the special commercial loan needs of environmentally-sensitive properties (thus frequently avoiding the need for Phase I/II environmental reports). Using this strategy, a non-traditional lender can usually get an environmental approval in 5-7 days.
COMMERCIAL LOAN DIFFICULTY: SHORT-TERM FINANCING?
One of the primary underlying reasons for a high failure rate among many auto services businesses is directly due to the commercial borrower being forced into short-term commercial financing when long-term commercial financing is essential to the health of the business investment. Businesses s
Compassion is one of five principles of the Skilled Facilitator approach. (It's also one of the four core values of the approach.) I have already written about the other four principles: curiosity, commitment, accountability, and transparency.Compassion means temporarily suspending judgment so that you can appreciate others' perspectives or situations when they are different from your own. To be compassionate you need to be genuinely concerned about the other person or people's needs. You need to think about and feel it from their perspectiv
COMMERCIAL LOAN DIFFICULTY: SHORT-TERM FINANCING?
One of the primary underlying reasons for a high failure rate among many auto services businesses is directly due to the commercial borrower being forced into short-term commercial financing when long-term commercial financing is essential to the health of the business investment. Businesses s
When considering buying a franchise there are some secrets you need to know about. There are lots of franchise opportunity directories available both online and at the local bookstores. First you need to narrow it down to the categories, which interest you. And you may be surprised to find that some franchises are listed in some directories and others in others.Some franchises investments do not show up well in the search engines for franchise opportunities, but show up well for consumers who may but the product or service, which is offered
COMMERCIAL LOAN DIFFICULTY: SHORT-TERM FINANCING?
One of the primary underlying reasons for a high failure rate among many auto services businesses is directly due to the commercial borrower being forced into short-term commercial financing when long-term commercial financing is essential to the health of the business investment. Businesses s
The idea of creating operating efficiencies is not an alien concept to business. The concept is about using current resources in the most effective way, whether that concerns building space, stock, equipment or staff. It’s also about minimising waste where possible.An area of efficiency that businesses sometimes forget, however, concerns the invisible resource known as energy. If your building or business relies on machinery, heating, ventilation, air conditioning, ventilation or other similar elements, it also relies on the energy you’re us
COMMERCIAL LOAN DIFFICULTY: SHORT-TERM FINANCING?
One of the primary underlying reasons for a high failure rate among many auto services businesses is directly due to the commercial borrower being forced into short-term commercial financing when long-term commercial financing is essential to the health of the business investment. Businesses should not be financed with short-term funds. It is essential to obtain long-term commercial financing of at least 15-20 years (and longer is even better). For most auto services businesses, long-term commercial financing is likely to be available only from a non-traditional commercial lender.
COMMERCIAL LOAN DIFFICULTY: BUSINESS CASH ADVANCES FOR IMMEDIATE WORKING CAPITAL?
As noted above, traditional lenders are frequently reluctant to provide long-term commercial financing to an auto services business. However, some financing needs can be handled effectively with shorter-term commercial financing strategies. A retail auto services business will usually benefit from using credit card receivables to convert future cash flow into immediate working capital (usually up to $300,000). This solution should be actively evaluated by owners and prospective owners of auto services businesses.
COMMERCIAL LOAN SOLUTIONS FOR AUTO SERVICE PROPERTIES
For an auto service business borrower facing any or all of the situations described above, the highest priority should be to locate a non-traditional commercial lender that:
(1) Openly welcomes auto service properties and routinely finances such properties.
(2) Does not add special requirements to the business loan for auto service commercial properties.
(3) Has a history of making loans for the specific type of property under consideration.
(4) Can accommodate both small and large commercial loans for auto service properties.
(5) Can accommodate environmental issues with such practical solutions as environmental insurance.
(6) Can routinely provide 15-25 year financing for auto service businesses.
(7) Is capable of providing immediate working capital via a business cash advance based on future credit card receipts.
Copyright 2005-2006 AEX Commercial Financing Group, LLC. All Rights Reserved.
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