Real Estate & Business Loans
USA Equity Partners (Private Bankers) can help you get the Commercial and or Business Loan you need!
With 30 years experience we have the connections and resources to guide you to getting approved for your loan. We offer assistance in obtaining Commercial and Business Loans for all types of Projects. We work with hundreds of Lenders, Hedge Funds, and Private Equity Firms across the country and can find the program that best suits your needs!
Here are some helpful hints when applying for a loan, hence “Asking For Money”,
The One Word You Must Know How to Use, In Order to Get Your Loan Request Approved Quickly”
You must use this one word I am about to give you when applying for any type of loan.
ASK
No one is ever going to give you anything that’s worth anything without you asking for it the right way. You need to re-learn how to attract the right capital to your project.
That’s why the bible clearly instructs what to do when we need anything…
“Ask and you shall receive”
Even the Lord remembered to keep it simple…
The secret is to learn how to ask for capital, which is a fancy way of saying “Learn How
To Prepare Your Loan Request Properly”.
Napoleon Hill spoke a Truth that I understood at a very young age. He said “There is
always plenty of capital for those who can create practical plans for using it”.
Remember this truth and never speak of a lack of capital. All you have to do is FOCUS
on creating solid and practical plans that attract the infinite amount of capital that’s
available to you.
The first step towards creating a solid and practical plan starts with using the acronym
A.S.C
This is an easy way to remember the basics of a loan request and start focusing your thoughts in the right direction. Use the acronym ASC when starting your first draft of your loan request.
All loans are approved by humans that work extremely hard and are under immense pressure to approve loans that DO NOT default. Use the following acronym to help you remember what you need to highlight in your loan request and it will kill two birds with one stone. You will have your thoughts and plans organized and it will subtly encourage the underwriter approve your loan.
A.S.C
Ability: First, you need to demonstrate your ability to pay back the loan. How are you going to service the debt payment? Explain it. This usually starts with preparing a proforma on the project or looking at the existing financials (income statement and balance sheet) of the target asset. These documents are always available and are easy to have explained to you.
Second, you need to have a personal financial statement (PFS) in the file that is up to date. Remember, it’s not always necessary or required to list every single liability that you have. There are different underwriting guidelines for difference projects and you need to have a solid understanding of the lender you are submitting your loan request to.
Stability: In your daily and professional life are you someone that has been in the same community for a long time, someone that has been in the same profession for years or is someone that has deep family ties to the community. Accentuate the positive and eliminate the negative. Are you the new employer in town that is bringing jobs to a much needed community? Or are you a fixture in the community that adds value to your customers and the residents of where your business is located? You must show that you are committed to the preservation of the asset and the community!
Whether it’s a start up, refinance or acquisition of an existing business, the underwriter wants to know that you are NOT going to leave when you go through the inevitable challenges.
Creditworthiness: Do you have good credit or bad? If you have low scores you may need to get a lead sponsor of the project other than yourself. If you have a great asset or business or idea then we can help you create the practical plans needed for attracting the right capital. And if you can create a practical plan for the use of the available capital then get to it! If your project is a turnaround and the existing financials are weak, then you better show them why you are the best qualified, super sponsor on the planet. The lender wants to know why you are qualified to improve the value of the distressed asset. Proof, proof, proof is what it’s all about. You can’t have too much of it!
Unless you have a need for private equity then you should never pay any due diligence fees. And even if it’s a private equity loan request you should be able to get verifiable term sheets before you commit to paying any fees. Usually, upfront fees are a sure sign that you’re about to be scammed.
If you would like to prepare a rough draft before you call me then use these free resources to help you get started today!
You can also get one-on-one training at your local SBDC (Small Business Development Center). This site will help you locate the one nearest to you:
http://www.sba.gov/aboutsba/sbaprograms/sbdc/sbdclocator/SBDC_LOCATOR.html
You can get facts about your area from your local Chamber of Commerce and Business Development Council. Or you can use national online sources like:
http://www.hometownlocator.com/
Here are some more of the required items that you need to get together to complete your loan request the right way.
No matter what the format, you will need to address the following:
a. Describe the business and be specific! Are the sales seasonal, are you open 24 hours, is it half rented, is a new business moving in across the street, is the local social security office sending you renters to help fill up your units etc?
b. History of the business and how you or your team members are overqualified to make it work.
c. Identify your customers (generally). How do you know the customers will continue to do business or rent from you? If you have a significant customer, (representing 10% or more of your overall business) identify and describe the relationship. How will you retain this customer or renter?
d. Identify your competition. Who are they, where are they located, what do you do differently or better? How will you keep or increase your market share?
e. Identify the owners, day-to-day manager, key employee(s)
f. Describe the site, the neighborhood, the town. What are the advantages of this location?
g. Resume and/or narrative about each person important to the success of the business or turnaround project. Sell yourself and don’t be afraid of sharing all of the accomplishments, skills, and experience of you and your team members. Tell the underwriter why you are going to be successful.
h. Project Costs (Soft and Hard). Describe each expense related to this project. This will help me get you the financing along with the right terms for your loan.
i. Describe your short and long term plans for the business or asset (if any). Are you planning to do anything differently than the past, improve net operating income, renovate the other half of the building and add on units? How will it impact your renter, customer base, sales, and operating expenses?
j. Projections: At least one year of projected business financial statements (proforma). If it’s an existing business or asset then make sure you have your previous year end statements. Also make sure you have your year to date Profit & Loss together and make sure you have detailed Income Statements and Balance Sheets. Your P&L must be projected by month with an annualized total along with an explanation of how projections will be met and the assumptions used. If this is a start-up or expansion, you will also need to prepare annual projections for the second and third year.
P.S. As an actual lender we never charge due diligence fees for loan requests that do not require private equity funding. Contact a pro today and get your loan request prepared properly. Click here to contact USA Equity Partners now!
