How Do I Choose The Right Mortgage Strategy? – Prets Hypothecaires

December 22nd, 2020 by admin No comments »

You can save thousands, if not tens of thousands of dollars on a home loan if you choose the right loan strategy (prêts hypothécaires). Even on a $100,000 mortgage, the savings can be considerable.
So the real question is what should I be doing in addition to looking at interest rates?

How do you choose the right loan strategy to suit your situation? That’s simple. Get in touch with a mortgage broker (prêts hypothécaires) who is able to analyze all of the options available and make the right recommendation for you. Why do you need an expert for this?

- We don’t know what interest rates are going to do, go up, down or stay in a narrow range.

- We don’t know enough about economic situation and its impact on interest rates.

- Each borrower needs a strategy designed for him alone, since each of us has our own needs and long range plans.

In order to be able to address these issues, you have to have the experience and knowledge to be able to examine all of the options available. Only a experienced mortgage professional is able to do that.

No one can help you choose the mortgage strategy for you unless he has intimate knowledge of each mortgage strategy that is available (both the positive points and the negative points), can calculate where you stand in the interest rate cycle and can make an educated guess about the interest rate movements over the next decade.

The interest rate cycles.

There are essentially three scenarios and two fundamental rules to understand interest rates (all this could take up several books, but we’re going to keep it as simple as possible).


1. Rates are generally increasing (1950-1980)

2. Rates are generally decreasing (1982-2003)

3. Rates are generally stable (2003-2006).

Each of these scenarios demands a particular strategy. It could be disastrous to adopt a strategy conceived for descending rates and then see them climb.

Business Opportunity Loan Strategies for Buying a Business

December 8th, 2020 by admin No comments »

When obtaining a business opportunity loan, borrowers will discover that many lenders simply do not provide business loans that do not include real estate as part of the business purchase. There are several other important business financing issues to analyze prior to buying a business without commercial property.

Interest in buying business opportunity investments has improved because of serious problems with residential real estate. However, because there are so many critical differences between financing residential real estate and business financing, it is important for potential business owners to educate themselves before proceeding.

In order to buy a business, a commercial borrower is likely to need business financing. If the business includes commercial real estate, the borrower will need a commercial mortgage. If the business purchase does not involve real estate, a business borrower must use a business opportunity loan.

Unfortunately the availability of business opportunity financing is more restricted than commercial real estate financing. There are also some potential limitations and problems unique to a business opportunity loan, and commercial borrowers should make every effort to avoid these business financing difficulties.

Our goal here is to focus on several financing issues that you should anticipate when commercial real estate is not part of the business purchase. Our suggested approach to business opportunity financing is provided below.

Begin your business opportunity investment financing plans by formulating a realistic assessment of cash available for a down payment and desired maximum business purchase price. A down payment of about 25% is suggested for most business financing situations described here. Usually seller financing is permissible for a portion of the down payment, but a potential buyer generally needs to plan on investing at least 10% of the purchase price from their own funds even if the seller is providing 15% or more.

Because Small Business Administration loans are essential for this kind of financing, you should explore whether you will in fact be able to qualify for these specialized business loans. This step is both important and somewhat complicated, and the involvement of an SBA loan expert is strongly advised. Among the issues to explore are whether collateral is available for SBA financing and how important refinancing is to your overall business opportunity financing process.

It is important to consider the lease terms which are possible. As noted previously, business opportunity financing and investing does not involve the purchase of commercial real estate, so arrangements must be made for a long-term lease. The length of the lease is important because the normal business finance terms will restrict the length of business financing to the period covered by the lease (although you should anticipate a ten-year maximum for investment business loans). In other words, with a seven-year lease, the commercial loan is likely to be for seven years, and even with a fifteen-year lease, the commercial financing will probably expire in ten years.

Explore whether including real estate is a viable option or not in order to buy a business. With the inclusion of commercial property, you can obtain a longer business loan and the interest rate will be lower. Because the absence of a commercial mortgage can actually be an advantage, the improved terms possible by including real estate should not be looked at in isolation.

Discuss business finance options with a business opportunity loan expert before making any offers to buy a business investment. These discussions should include issues such as potential purchase price, down payment possibilities, seller financing, buyer credit scores, tax return requirements and collateral options.

How to Repair Credit – Secret Do it Yourself Passbook Loan Strategies

November 25th, 2020 by admin No comments »

One little advertised strategy you should use when learning how to repair credit is applying for a passbook loan. This technique will give you great results when you choose to do it yourself. Basically all you have to do is deposit money into a blocked CD or savings account where you can’t have access to the funds. You also surrender your passbook to the bank and waive any ATM privileges.

Not all banks offer this type of loan. You may have to spend some time trying to locate a nearby bank that offers one. Banks don’t actively advertise this type of loan to people with financial issues on their record. If you can’t find a local bank willing to offer one, a personal loan will accomplish the same thing. However, you may be required to secure a co-signer or provide some sort of collateral for the loan (but don’t use your house).

When you find the right loan, be sure to go over these important features:

1) Be Sure It Reports To The Three Major Agencies

Make sure the lender supplies your payment history to the three bureaus. After all, this is the main reason you’re taking out the loan. If you find the bank doesn’t work with the three bureaus, move on to the next bank.

2) Find Out The Minimum Deposit

Ask the bank what the minimum deposit requirement is to open a passbook loan. Deposits can range anywhere from as little as $50 to as much as several thousand dollars. You need to find one that you can afford. When teaching my readers how to repair credit, I recommend a minimum passport loan of $1,000 if you can afford it. This amount is high enough to have a healthy impact on your FICO score when you do it yourself.

3) High High Is The Interest Rate?

With these type of loans, don’t expect the interest rate to be low when you have a record of financial problems. You should also expect the interest earned on the account to be less than the rate you pay on the loan. That’s how the bank profits from your loan. You may question whether it’s worth spending the extra money just to take out the loan, but let me assure you the benefits to your score make it well worth it.

4) What Are The Terms

You’ll find most passbook loan terms to last anywhere from one to five years. For the best effect on your score, I recommend you take a minimum term of 12 months. This provides a long enough time to make a positive impact on your score. You also save on the interest payments.

A Restaurant Loan Strategy For People With Bad Credit

November 3rd, 2020 by admin No comments »

This article is primarily directed toward people who own, or are considering getting into the restaurant business. I myself used to own a restaurant several years ago. It is tough work I know, but it can be very lucrative if you work hard, make wise decisions and with a little luck.

So often, we get so caught up in the day to day struggle that we forget to step back and take a look at the big picture. Think for a moment of what you could do if you had an extra 10, 20 or 50 thousand dollars to invest into your business. What would you do with the money? I don’t know about you, but I can think of many things that I would use the money for;

Remodel the dining room
Remodel the kitchen
Expand the seating area
Purchase new equipment
Spend money on advertising
Buy out a business partner
Open a new location

These are just a few ideas. I am sure that you can come up with a few of your own ideas.

I tried to get a loan but I got turned down because of bad credit

You are not alone. Believe me; this economy has wreaked havoc on many business owners credit. To make matters worse; the banks are barely loaning money to anyone, regardless of their credit history. If you credit has taken a few hit over the past few months; you can pretty much kiss the idea of getting a business loan goodbye.

Thankfully there is something called a business cash advance

A business cash advance (also called a merchant cash advance or credit card advance) is a business loan alternative that has been proven to be extremely beneficial to restaurant owners. The cash advance is based upon your sales history instead of your credit history. If your restaurant is sustainable and you do a consistent business; then chances are you will qualify for a business cash advance.

Thousands of restaurant owners all over the country have used this type of funding, and 70% of them come back for another. If you invest your money wisely, you will have it paid off with a minimal amount of strain on your business. Once it is paid off, you will reap the benefits of your investment for years to come.

Mortgage Refinancing Loan

October 27th, 2020 by admin No comments »

Is your credit rating a little shaky?

You have a credit score of 620 or lower
You have missed two or more 30 day mortgage payments in the past year
Or you have had at least one 60 day delinquency in the past two years
You are struggling to meet your monthly expenses

If this describes your current situation don’t panic, you’re not doomed. You may well qualify for a bad credit mortgage refinance. In addition to the above facts, lenders take into consideration your home collateral and your ability to repay the loan. So, if your house is worth more than the money left owing on it and you can make your payments then you are probably a good candidate.

Believe it or not, there are even some positives to mortgage refinancing with bad credit.

A bad credit home loan may help you to avoid declaring bankruptcy
You may be able to free up some cash for home improvements
It gives you a fresh chance to repair your credit
It may be possible for you to consolidate your bills into one monthly payment
Mostly, it can relieve the feeling of burden and pressure

Once you’ve decided to go ahead and refinance your home, don’t just start applying haphazardly. Repeated credit applications and credit checks can actually hurt your chances at getting a bad credit mortgage refinance loan. Before approaching any lender, do your homework.

The first thing that you need to do is get a copy of your credit report. You can get it from one of the three main reporting bureaus: Equifax, Experian, Transunion. Check the report over to make sure all the information is accurate. If you spot any mistakes, get them cleared up before applying for your loan. After you’ve done that, you’ll have a realistic picture of your credit situation. It is copies of the final, accurate report that you need to give to the lenders when shopping for your bad credit mortgage refinancing loan. Do not let anyone do a new credit check on you until you’ve decided which lender you’re going to work with.

Just because you’re looking for a mortgage refinancing loan for bad credit does not mean that you should not use caution. Search out reputable lenders online and request information. Be sure that they’re licensed.

Once you’ve chosen a lender who offers you an acceptable rate, get the quote in writing. That will lock in the numbers so they can’t change if interest rates do before you finish the application process. The only thing that can influence your pro-offered rate is if your credit score has changed from what it was on the copy that you submitted for the quote.

As soon as everything is finalized, you’ll have your mortgage refinancing with bad credit. It really is not that hard and the benefits can make your life easier.

Apply Car Loans: Strategies for Newcomers

October 15th, 2020 by admin No comments »

Getting your hands on the wheel of your first car is a dream many people share who have not been able to buy a car. People can do so many things with a car such as travel to distant places or visit beautiful places near your area. On a more practical tone, it is used as a means of transportation to get to work and finish chores.

All of these can be a factor for people to push themselves to get a car. If you have been looking for an auto loan, you can do it over the Internet. Online auto loans have been a hit since the advent of online transactions. As a car insurance applicant who never had prior experience applying online for a loan, here are a few tips to keep in mind.

- Do it online. One of the best choices to get a loan is to apply car loans online. Compared to its traditional counterparts, you do not have to suffer expensive rates and mediocre deals. Applying through the Internet gives you the best rates because there is high competition in online loans. Car companies and dealers will learn how to decrease their rates without hurting the company. Moreover, you can use the Internet to browse as much companies as you can. You can also ask for quotes for a specific car you had in mind and compare them for the best affordable deals suitable to you.

- Know whether you have good, bad, or no credit scores. What is the difference between having good, bad, and no credit scores? Credit scores are what lenders use as basis for their capacity to pay loans and attitude towards it. Having a good credit standing is the most ideal score to have since it is what conventional lenders are looking for when you want to apply for car loans. Bad credit score means you have a rating of less than 625. This makes car loan applications difficult, while having no credit history is almost the same as having bad credit scores. It’s a good thing the Internet has car loan companies that accept applicants regardless of their credit score.

- Prepare your documents. After the easy application you completed online, you must prepare your documents. Documents may include proof of employment, proof of paying capacity, and some household and phone bills. All of these are used by online car loan companies as a basis whether to accept your application or not.

- Pick the right car. There are many kinds of cars you can choose from, but all of them fall under one of the two categories: new and used cars. For first time car loan applicants, it may be suitable for you to get a used car. This is just a way to build or improve your credit score while still having a car to drive around. This is also more affordable than getting a brand new car.

Commercial Mortgage Loans

September 26th, 2020 by admin No comments »

Getting commercial real estate loans approved is almost always complex and frequently difficult. Business borrowers need to realize that there are several commercial mortgage loan situations which can be especially difficult to get approved. Examples of eight difficult business loan situations are described to illustrate two key points: (1) these difficulties are not uncommon; and (2) these difficulties can be overcome in most cases.

Difficult Commercial Mortgage Loan Situation Number 1:

A commercial loan that needs to be closed in 60 days or less. It is not unusual to discover that a traditional lender considers six to nine months “normal” for commercial loan underwriting. Obviously this will act as a severe constraint if a commercial borrower is trying to buy a property that the seller wants to close in two to three months. If quick funding is essential, the commercial borrower should contact a non-bank business lender where most commercial loans will close in 45 to 55 days.

Difficult Commercial Mortgage Loan Situation Number 2:

A commercial loan that won’t work without long-term financing. What is long-term financing for a commercial loan? Some commercial lenders view 3-5 years as the longest period before a commercial loan will be subject to a balloon payment. If that sounds short-term instead of long-term, most non-bank business lenders can arrange 25-year to 40-year commercial real estate loans for commercial properties. Longer-term financing will often be the critical difference that facilitates a successful business investment (especially because mortgage payments will be reduced dramatically).

Difficult Commercial Mortgage Loan Situation Number 3:

Providing financial data to a commercial lender after the loan is closed. Some commercial loans will have covenants stipulating that the lender must receive financial data even after the loan closing and that the loan can be recalled (forcing the borrower to repay early) if the audit of this data is not satisfactory to the lender. In stark contrast to this, commercial loans via non-bank commercial lenders based on Stated Income will not require business plans or income verification either before or after the loan is closed.

Difficult Commercial Mortgage Loan Situation Number 4:

Borrower is self-employed or income is paid on a commission, bonus or incentive basis that is somewhat erratic and difficult to document properly. Non-bank commercial lenders using a Stated Income business loan program will not require tax returns or any income verification. They also will not require commercial borrowers to sign IRS Form 4506 (which authorizes the lender to obtain tax returns directly from the IRS), a form routinely required by many commercial lenders.

Difficult Commercial Mortgage Loan Situation Number 5:

A borrower wants to refinance a commercial property and use $500,000 to $1 million from the proceeds to buy another property. Most commercial lenders will restrict the maximum cash that can be taken out of a refinancing, with a normal limit of $100,000 to $250,000. It is also not uncommon to encounter restrictions on the use of the cash. With a commercial loan via most non-bank commercial lenders, the commercial borrower could receive unrestricted cash up to one million dollars and use the proceeds without restrictions.

Difficult Commercial Mortgage Loan Situation Number 6:

A borrower wants to use a substantial amount of subordinated debt (a seller second or other secondary financing) to reduce the amount of cash needed to purchase a commercial property. Many commercial loans will not permit a seller second or other forms of subordinated debt. With a commercial loan via most non-bank business lenders, a commercial borrower can obtain Combined-Loan-to-Value (CLTV) ratios up to 95% with subordinate financing (including seller seconds).

Difficult Commercial Mortgage Loan Situation Number 7:

Sourcing and Seasoning of assets or ownership. For a purchase, commercial lenders will frequently want documentation about where the down payment is coming from (the source, so having limitations about where the funds are coming from is called sourcing). Commercial lenders will frequently have requirements stipulating that the down payment funds must have been in a specific account for a specific period of time, often 3-6 months or longer (this is called seasoning because it is tantamount to requiring that the funds have matured by being in the same place for a while). Seasoning of ownership is similar to seasoning of funds, except this requirement involves the minimum time someone has owned a commercial property before they can refinance the property. Most non-bank commercial lenders do not have any requirements or limitations involving either sourcing/seasoning of funds or seasoning of ownership.

SR&ED Tax Financing – New SR&ED Loan Strategies

June 2nd, 2020 by admin No comments »

SR&ED tax Credits continue to be a strategic method in which Canadian business can both stay competitive and at the same time take advantage of the governments non repayable grants. Most parties agree this is probably the most beneficial grant program in Canada, bar none.

Not only is the program applicable to almost every industry in Canada, but at the same time business owners and financial managers can compound the power of this program by financing their claim. Get cash for my SR ED claim now? Asks Canadian business. The answer is an unqualified yes.

Let’s recap some of the key aspects of the program as they relate to your ability to ‘monetize ‘your tax credit into real cash flow and working capital now. Also, let’s recap and focus on some current issues in your ability to access and maximize your SR&ED claim.

If you aren’t filing a SR&ED claim you certainly can’t finance one. The Canadian government, both federally and provincially reimburse billions of dollars annually to Canadian business in all industries. A few industries seem more tailors made than others for SR&ED claims, example: Software and information technology. But the reality is your firm can be a commercial bakery, a sign company, or an industrial manufacturer. The bottom line is that almost every industry is eligible in some manner.

Government grants SR&ED dollars in its own interest to allow Canadian companies to become more competitive and profitable.

Your claim of course needs to be prepared by a knowledgeable third party. In Canada this essentially is an accountant who is proficient in SR&ED or a third party commonly called a SR&ED consultant. In many cases some consultants specialize in only certain industries, which is a plus.

Recently changes in the entire SR&ED process can both help and hinder your firm in maximizing your total SR&ED credit. Naturally the larger the claims the more amount of cash that you can finance under a tax credit financing.

Canada Revenue Agency has instituted new forms for the claim. Forms are found online at the government website, and in some cases have dramatically simplified your ability to file and explain and back up your claim. For example, the new online from limits the overall technical description of our claim to only 1400 words.

In general almost 75% of claims are not fully audited, and are therefore approved and somewhat fast tracked for refund.

How do some of the new forms and rules affect your ability to finance your claim? When it comes to financing your SR&ED claim it is critical to work with an experienced, credible, and trusted third party. Claims are generally financed at 70% of their overall value. Therefore your ability to have your claim fully document, prepared by a credible third party, and fast tracked into the ‘non audit ‘75% of all claim range is a solid SR&ED financing strategy.

Naturally just because your claim might undergo a SR&ED audit does not mean it is not financeable. The reality is that your claim if it is strong and supportable will be approved and therefore can be financed.

We referenced that claims are financed at 70%. That simply means that the larger your claim you can receive immediately, on financing approval.70 cents on the dollar for your claim. You of course still receive the rest of the claim, less financing costs, when your claim is approved and funded by Ottawa

The entire SR&ED tax credit financing process is very similar to any other business financing. You should not approach it unlike any other financing your firm might contemplate – there is a basic application, which is of course supported by your actual technical claim. The SR&ED loan is collateralized by your claim, as we have stated. Typically a financing can be completed within a couple of weeks, which allows time for application, any due diligence that might be required, as well as documentation and registration of the claim.

If you are filing SR&ED claims in Canada you are among the 15% of businesses that are eligible for this non repayable grant – why not compound the power of that government benefit and consider financing your claim. Accelerate your cash flow and working capital and utilize those funds for any general corporate purpose. A recent firm we worked with chose to finance their sr&ed claim simply because they had seasonal cash flow – they didn’t want to wait for many months for their cheque – and intend to utilize those funds for general business growth and working capital.

So whats our bottom line? Its simply that you should take advantage of the funding under the program, and you may wish to consider monetizing your grant into cash flow now. That’s innovation in both your product and services, as well as your financing strategy! Utilize your funding to accelerate more research and use the cash flow for further growth and development.

Business Loan Strategies to Buy a Business Opportunity

March 17th, 2020 by admin No comments »

When buying a business opportunity that does not include commercial property, borrowers should realize that business loan options will be significantly different when compared to a business purchase that can be acquired with a commercial property loan. This problematic situation occurs because of the normal absence of commercial real estate as collateral for the business financing when buying a business opportunity. In terms of arranging the business loan, efforts to buy a business opportunity are almost always described by commercial borrowers as excessively confusing and difficult.

The comments and suggestions in this report reflect business financing conditions that are frequently offered by substantial lenders willing to provide a business loan to buy a business opportunity throughout most of the United States. There are likely to be circumstances in which a seller will privately fund the acquisition of a business opportunity, and it is not our intent to address those business loan possibilities in this report.


Buying a Business Opportunity – Length of Business Financing to Anticipate

Business financing conditions to buy a business opportunity will frequently involve a reduced amortization period compared to commercial mortgage financing. A maximum term of ten years is typical, and the business loan is likely to require a commercial lease equal to the length of the loan.


Expected Interest Rate Costs for Buying a Business Opportunity

The likely range to buy a business opportunity is 11 to 12 percent in the present commercial loan interest rate circumstances. This is a reasonable level for business opportunity borrowing since it is not unusual for a commercial real estate loan to be in the 10-11 percent area. Because of the lack of commercial property for lender collateral in a small business opportunity transaction, the cost of a business loan to acquire a business is routinely higher than the cost of a commercial property loan.


Down Payment Expectations to Buy a Business Opportunity

A typical down payment for business financing to buy a business opportunity is 20 to 25 percent depending on the type of business and other relevant issues. Some financing from the seller will be viewed as helpful by a commercial lender, and seller financing might also decrease the business opportunity down payment requirement.


Refinancing Alternatives After Buying a Business Opportunity

A critical commercial loan term to expect when acquiring a business opportunity is that refinancing business opportunity financing will routinely be more problematic than the acquisition business loan. There are presently a few business financing programs being developed that are likely to improve future business refinancing alternatives. It is of critical importance to arrange the best terms when buying the business and not rely upon business opportunity refinancing possibilities until these new commercial financing options are finalized.


Buying a Business Opportunity – Lenders to Avoid

The selection of a commercial lender might be the most important phase of the business financing process for buying a business. An equally important task is avoiding lenders that are unable to finalize a commercial loan for buying a business.

By eliminating such problem lenders, business borrowers will also be in a better position to avoid many other business loan problems typically experienced when buying a business. The proactive approach to avoid problem lenders can have dual benefits because it will contribute to both the long-term financial condition of the business being acquired and the ultimate success of the commercial loan process.

Copyright 2005-2007 AEX Commercial Financing Group, LLC. All Rights Reserved.

Marketing, Promoting and Advertising Your Business

February 28th, 2020 by admin No comments »

One thing that goes without saying in today’s business world, is that regardless of the nature of your home based business, a website is an absolute MUST. Whether you have a product or service to sell, whether local or global, your business will go nowhere fast if you don’t have an online presence. If you need internet marketing help, you’ve landed on the right article. I’ll give you some home based business marketing ideas that will help you promote your business successfully.

The first step is choosing a domain name and getting it registered. You can build your own website (if you have the time) and host it yourself or you can have everything done by another company (if you have the money). Either way, you have many options and tools at your disposal that can align with your business plan and budget. Also note that you can still start your own home based business even if you don’t have a product or service to sell. There are thousands of individuals and companies that have products you can sell for them while earning a commission, called affiliate marketing.

Of the many business marketing strategies known to man, internet marketing is, hands down, the best strategy to use for promoting a home based business as it is the cheapest method and has the potential for reaching millions of people all over the globe. Driving traffic to your site through online resources is like killing two birds with one stone. You can tackle print advertising by writing articles and publishing them to directories and ezines and by submitting ads to the many available (and most of them free) classified ad sites. Online media advertising encompasses writing press releases and distributing them to press release sites. One of the biggest and most popular online advertising trends today is via social media advertising through sites such as Twitter, Facebook, and LinkedIn where you build relationships with your customers. Forums and communities are also great ways to build relationships which helps promote your home based business in the long run. Simply Google your market or industry with the word ‘forum’ or ‘community’ behind it and search for one or two that seem to be the best fit for you.

All of these methods of online advertising contribute to search engine optimization (SEO), which is to say improving your online visibility and escalating in the search engines like Google, Yahoo and Bing. Your goal is to claim the #1 spot in the organic search results (the results on the left, not the right side which are paid ads). This is where your traffic will come from. If you are 800 in the list of search results, no one is ever going to see your site because very few people have the time or patience to scroll through 800 search results. Research shows that people typically won’t even scroll past 4 or 5 search results, let alone 800.

Can you grasp the importance of internet marketing for any business? If you are new to the internet marketing phenomenon and don’t know exactly where to start, there are many great programs or systems online that walk you through every aspect of marketing your online business. A lot of these systems were created by online entrepreneurs who have spent thousands of their own dollars trying to figure it all out over the years and finally DID. Their sacrifices have made it easier for newbies to become successful at their own online home based business. If you are new to running your own home based business, I recommend you find a great system (do your research, read reviews, ask questions in forums) and start marketing your home business from there. Don’t waste the time and money that so many of us have in going it alone, without a proven system, as it will just set you back further and hinder your progress.