BLS Finance originates $450,000 Commercial Real Estate acquisition loan for Idaho Daycare Center operation.

BLS Finance has recently originated  commercial property financing for a Daycare Center in Idaho to purchase its first commercial brick-and-mortar location.
The loan represents 150% Loan-To-Value(LTV), versus the sale price of the property. The total use of funds was itemized on the term sheet as:

1. $300,000 / Building / Land Acquisition.
   B. $100,000 / Building Improvements.
   C. $50,000 / Unsecured Working Capital.

The loan term and structure included excellent conditions for the business to establish and grow in the coming years. Some notable highlights were:

– First 6 Months Interest Only
– 300 Month Term (Fully Amortized)
– No Pre-Payment Penalty (After 3 Years)

The loan structure represents one of the highest LTV scenarios BLS Finance has originated  in recent years. The firm was able to achieve the financing  based almost entirely on future revenue projections for the daycare business itself.

About BLS Finance || BLS Finance is a registered and bonded North Carolina Commercial Loan Originator. Consumer Protection Registration No. 223. BLS offers easy online applications, professional and friendly service, data security and competitive commercial loan rates to its clients. For more information, contact Mark Hurst (980) 202-7990 9am – 5pm EST, Mon – Fri., email inquiries@blsbusinessloans.com or visit http://www.blsfinance.com

Equipment Leasing and Financing; Minimum Loan Amounts increasingly within reach for Small Business Owners.

Lenders have always had “Minimum Loan Amounts” for programs where financing is available to a company, secured against equipment. Often, these amounts can be as high as $50,000 or even $100,000, before a finance house will even entertain an application.

However, as the marketplace changes, new equipment financing programs are being introduced which have been opening up doors to small business owners for long-term, lower rate financing.

At BLS Finance , we are pleased to have programs where equipment can be financed with a Minimum Loan Amount as low as $10,000. This means that business equipment purchases which never would have qualified in the past, now qualify for financing or leasing. One example is a recent transaction where a used printing press sourced from a private seller was financed for $15,000 over 3 years. This means that it’s not just the minimum loan amounts which are becoming more flexible – it’s also the way the equipment can be sourced that adds value.

New, Used or Private Sale financing options can open up doors to purchasing business equipment in a much more cost-effective manner. Some common examples of business equipment we can help finance or lease in this price range include:

– Essential Medical Equipment.

– Auto Servicing Equipment.

– Landscaping Equipment.

– Restaurant Equipment.

– Computer / Tech Hardware.

– Construction Equipment.

– Embroidery / Printing Equipment.

– Dry Cleaning Equipment.

For more information, feel free to get in touch!

About BLS Finance || BLS Finance is a registered and bonded North Carolina Commercial Loan Originator. Consumer Protection Registration No. 223. BLS offers easy online applications, professional and friendly service, data security and competitive commercial loan rates to its clients. Call (980) 202-7990 9am – 5pm EST, Mon – Fri., email inquiries@blsbusinessloans.com or visit http://www.blsfinance.com

Bridge Loans can often be instrumental in obtaining permanent, low-rate commercial mortgage financing.

Business owners often find themselves in a difficult position when a new construction has just completed. Capital reserves have hit an all-time low (often, due to unforeseen costs and capital outlay during construction and/or renovation). As a result, bills tend to get paid a little later than usual – and when bank partners start running for the hills, stress can hit an all-time high.

This is where commercial bridge loans come in:

Interest rates on commercial bridge loans are slightly higher than commercial mortgage loans; however, terms are usually quite short (i.e. 12-36 months). This can give a business the opportunity it needs to stabilize the company in its new location and put itself in a stronger financial position.

When the time is right, permanent commercial mortgage financing can then be applied for. Benefits of a commercial bridge loan include:

• Up to 80% LTV
• Fast closing – often within 10 days
• Complex deal structures
• Cash-out for recapitalization
• Partner buyouts can be arranged

In closing, commercial bridge loans can be a powerful alternative lending solution when other options seem out of reach. They can also put your business back on track to success and traditional financing sources back within reach.

For more information on commercial mortgage or commercial bridge financing, please visit http://www.blsfinance.com or call us at 980-202-7990 Mon. – Fri. 9am – 5pm, EST.

Merchant Cash Advance can be a superior financing opportunity for your retail business.

A merchant cash advance, which advances your business for its future credit card receipts, can help you obtain much needed funding when you might not qualify for traditional loans. Listed below are some of the potential benefits to your business:

1) It’s not considered a loan.

A merchant cash advance is different from other business loan or business line of credit because it is not really a loan. If you operate a business that also processes credit card transactions, then you are a merchant processor and can qualify for this type of business financing.

A loan has an interest rate, which means that the amount will be ‘amortized’ in such a way that you will pay back more than you initially borrowed. However, with a merchant cash advance, the factoring company simply gives you less than the total amount they will collect from your credit card sales.

2) Personal credit history can be less of a factor for approval.

One of the first things a traditional loan lenders look at is your credit score. A negative credit history lowers your credit score and makes it more expensive or impossible for you to borrow. A limited credit history has the same effect. If your business is new or you have never needed financing, getting a loan can be more difficult.

With merchant cash advances, the factoring company often fund your company on only a 60-day history of credit card sales. The ‘factor’ already knows the risks in arranging advances on major credit card sales and doesn’t need as much history to determine if they can make money by advancing you.

3) Less risk for your company.

With a traditional loan, you share risk with the lender. If you cannot repay, the lender can take whatever you have put up as security and can take legal action to force you to pay the balance. In either case, your credit rating is negatively impacted. With a merchant cash advance, the factoring company that advances you the money takes the risk. Funds are advanced to you and the ‘factor’ then collects a percentage of credit card sales due to your business.

This also means that payments can be more easily managed, creating an excellent cash flow solution. If your revenues are up this month, your payment due to the factoring company will be higher. If your revenues are down, your payment due will be lower!

To learn more about merchant cash advance funding, please visit http://www.blsfinance.com/mca.aspx . Or you can call 980-202-7990 any time Mon. – Fri. 9am – 5pm EST and we will be happy to consult with you.

Equipment Financing can be a clever solution for your company working capital and cash flow.

Often, small businesses can run into problems with cash flow and end up in a squeeze. High interest rate loans and lines of credit are often taken out in order to rectify the situation, but this scenario could normally have been avoided by leveraging the company assets, instead.

With equipment financing or equipment leasing, longer terms and lower rates can be achieved than with unsecured working capital loans, allowing your company to avoid paying more than it needs to in terms of the overall “cost of capital”.

In order to leverage your company equipment for cash flow, two main strategies can be implemented:

1. Finance or lease all of your equipment now or as needed. This simple strategy allows you to keep your company working capital in the bank, rather than depleting it. Purchasing equipment for cash can drain company resources very quickly and leave your company exposed to cash flow issues.
2. Fund your company working capital requirements by taking advantage of sale leaseback financing. This type of financing allows you to finance equipment your company already owns outright, taking advantage of longer terms and lower rates, versus unsecured loan products.

Unsecured working capital loans have a place in business lending, but they must always be your last line of defense in funding your working capital requirements. These products represent the highest rates and shortest terms, so they must be used strategically and wisely.

Here at BLS Finance , we have a wide range of business lending solutions available for our clients. If you are currently looking to purchase equipment for your company or are in need of working capital for your business, please feel free to get in touch. (980) 202-7990. Mon. – Fri. 9am – 5pm EST or you can visit our web page at http://www.blsfinance.com/equipment.aspx for more information. We can achieve equipment financing and leasing up to $175,000 and working capital loans up to $3,000,000.

 

Business Tax Lien Consolidation can afford breathing room after IRS settlements.

Tax Liens can mean the end for many business owners, but the end can be avoided if some of the pitfalls of the process are warded off ahead of time. The process with the IRS and other entities almost always follows the same format when the tax situation has gotten out of control, so planning can be quite simple if a business wants to stay afloat.

The process normally begins when an IRS deadline has been breached and the business owner finds themselves unable to pay for one reason or another. The owner will then approach an attorney or tax lien settlement expert to negotiate on their behalf with the IRS to ask for a reduction and settle the debt. This process normally goes on for a while and the end result can be a significant reduction in the debt owed. Here at BLS Finance , we have seen $1,000,000 tax liabilities reduced down to $250,000 or even lower, But, the part most business owners don’t realize (and the part most attorneys and expert services don’t tell their clients) is that once a significant settlement has been made with the IRS, the payment options can be inflexible, to say the least. For example, a typical payment plan for the aforementioned scenario would be $125,000 X 2 Months!

This is one reason why many companies go out of business over tax liens, though attorneys and special services have negotiated the outstanding tax debt to a fraction of the cost on their behalf. In this typical situation, business tax lien consolidation can not only help, but can literally save the company.

Benefits of this program include:

• no limit on the amount of tax liens consolidated
• significantly longer terms than IRS or state government payment plans
• tax liens paid off immediately, lifting the judgment(s) encumbering the business owner’s property and personal credit profile
• extra working capital can be consolidated into the loan, in many cases
• no property required to secure the loan against

If your company is currently negotiating tax liens or recently settled and feeling the pinch from the payment terms, please visit our website at http://www.blsfinance.com/tax_liens.aspx or call us at (980) 202-7990, Mon. – Fri. 9am – 5pm EST. We would be happy to discuss your situation.

We are also able to consolidate merchant cash advance loans under this program.

What are the different types of the commercial real estate loans that you can apply for?

Company owners and individual investor real estate owners both need commercial loans for their properties. If you are in need of financing for your commercial property, then it may be a good idea to team up with an experienced originator. A good commercial loan officer will be able to enlighten you on the different ranges of funding types. Here are a few examples of the most common loan products:

Cash out refinancing: You can apply for this type of commercial real estate loan when you need extra working capital for your business. The best part is that you get to take advantage of the lower rates on real estate deals to raise funds to operate your company with.

Loans for construction: If you are in a venture or construction project, then you can apply for this type of loan. The benefit is that you can get the majority of your project funded this way and then move over to more permanent financing later.

Conventional loans: If you have a commercial property and you want permanent, long term financing this is the best solution. Interest rates are also kept at a minimum with this type of financing.

Hard money loans; At times, borrowers can fail to qualify. It has happened to the best of us at one time or another. In this case, the borrower can apply for this type of short term financing and still get the property financed.

Bridge loans: This type of financing is a must for companies who have completed construction deals or otherwise need a shorter term loan to stabilize the property, until permanent financing can be applied for.

If you are looking for a commercial loan for your property and don’t know where to start, BLS Finance can help.

You can call us at 980-202-7990 or visit our website: http://www.blsfinance.com/commercial_real_estate.aspx. Our experienced originators will be happy to guide you through the process and answer any questions you may have. No matter large or small you are as a company, we have a solution for your finance needs. Give us a try on your next commercial property loan!

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BLS Finance LLC | Commercial Real Estate Loans | Amortized Business Loans | Sale Leaseback Financing | Receivables Factoring

 

Small banks trend away from commercial real estate loans.

2016 saw further tightening in the banking sector, hitting small businesses even harder. “We’ve noticed a trend this year with the local, smaller banks sitting on [commercial] mortgage applications,” Marvin Adcock, Managing Director at BLS Finance LLC in Charlotte said. “Being based in a city where the banking industry is highly concentrated, we are able to notice these trends very quickly.” This type of behavior may be the result of regulator involvement, as multiple government regulators have been warning against this type of lending throughout the year.

In December 2015, the Office of the Comptroller of the Currency (OCC) issued a warning statement to the ‘Chief Executive Officers of All National Banks”, which stated “Historical evidence demonstrates that financial institutions with weak risk management and high CRE (Commercial Real Estate) credit concentrations are exposed to a greater risk of loss and failure. Maintaining underwriting discipline and exercising prudent risk management practices can help institutions succeed during difficult economic cycles.” The OCC wasn’t the only regulator to send these warnings against lending on commercial property. The Federal Reserve and the Federal Deposit Insurance Corp. (FDIC) also issued a joint statement, expressing concern about the booming sector.

So, while regulators are concerned about the health of the banking industry, who is concerned about the health of small businesses?

“We are proud to have shown many business owners the path to refinancing their commercial obligations this year. We have also been involved with helping many owners find freedom from high lease payment scenarios. Many of our alternative funding solutions have resulted in a rent-factor reduction of 50% or more. Others have even managed to bring that factor down to zero, by taking advantage of borrowing rules which allow them to buy larger properties at lower rates and then lease out up to 49% of the excess square footage, generating substantial income. Under these terms, we can free up as much as $25,000 per month in working capital – and the company gains a real stake in the property they occupy,” Adcock concluded.

The foreseeable future also appears to conclude that alternative lending solutions will continue to play an important role in the overall market.

Does your business struggle with high rent or other cash flow related problems?

BLS Capital Finance LLC
USA Toll Free: (844) 631-8150
International: +1 (980) 202-7990
http://www.blsfinance.com