Consolidating Home Loans and Other Debts

If you are in debt and trying to get yourself out of it, then there are various options available to you. Among these is loan consolidation which is a way to reduce your debt at the same time as making it easier to manage and a lot less stressful – and it can even help you to improve your credit rating. Here we will look at what loan consolidation means and how it can be beneficial.

What is Loan Consolidation?

Essentially if you have lots of different debts then consolidation means reducing these to just one single debt. In short you are taking out on large loan, and then using this in order to pay off may of your smaller loans so that you only owe one company money, and so that you only have the one monthly payment coming out of your account to worry about.

Why Use Loan Consolidation?

This in essence makes it much easier for you to pay off your loans because you won’t have to worry about keeping enough money in your account on the various different dates that your loan repayments are taken out. You will have one manageable payment to worry about at a set time each month, and that means you can organize your finances around this one date rather than having to keep tabs on several different debits.

What this also means is that in some cases you can also reduce the amount you have to pay. In some cases the interest on your consolidation loan will be higher than on that of your smaller loans and in this case you will pay for the convenience of using these loans. In other cases however that consolidation loan will have a lower interest rate than the combined interest of those smaller loans, and this will actually save you money in the long term.

Another benefit of consolidation is that it can improve your credit rating. Your credit rating is the rating given to you by the various banks and lenders that you have dealt with in the past. Each time you have taken out a loan, they will have given you a rating based on how efficiently you paid that back and whether or not the payment was on time etc.

Thus if you can demonstrate your ability to pay back your loans in full and on time, then this will improve your rating because they will report that you managed to pay them back. It won’t matter to them for the most part that you used consolidation – only that you paid the amount back. This then will mean that your rating goes up as a result, and your status is that of someone who has paid back several loans in the past and currently is only paying one.

Gas Station Financing? Things You Need to Know

Financing gas stations are difficult, complicated and subsequently most conventional banks and lenders don’t consider financing a gas station or convenience store properties. Why?

1)Gas stations, convenience store and car wash business is a “cash business” and no business owner would declare the cash in the tax returns. Therefore, it is impossible to verify cash flow and determine the debt to service ratio for the loan

2)Gas station properties have environmental risks. The ones that are clean have a higher risk of environmental problems in future

3)If the lenders take over the gas station properties through foreclosure, they are not able to run the business. Unlike income producing properties such as apartment buildings, the lenders can’t get a property manager to manage the gas station.

4)There are other issues such as low fuel margins, restrict dealer or franchise contract that makes the lender uncomfortable in evaluating gas station financing

There are few lenders that would consider financing gas stations and they mostly use SBA loans to finance the property since the federal government guarantees major portion of the loan. Even with the government guarantee, the lenders are very conservative in underwriting the transaction. To be honest with you, if you have found a gas station property to purchase, financing is possible but would be a pain so be ready.

There are niche lenders specializing in gas stations and convenience store financing [http://easysbaloan.com/small-business-loan-programs/special-purpose-lending/convenient-store-commercial-property-loans-financing/].

Some would go as high as 80% loan to value of the property and they use the real estate, business and equipments as collateral in underwriting the property. Underwriter looks at the tax returns, income statements and sponsors’ credit and experience to analyze the credit worthiness of the transaction.

Choosing the Correct Partner for Leasing and Financing

One of the best ways to limit your company’s overhead, particularly when you’re in the early phases of development for your business, is to lease equipment that you will need to conduct all of your business operations. If you have a bit more cash to work with and want to buy equipment to save money in the long run, financing could also be an option.

But when you’re looking to find a partner for leasing or financing, how can you be sure that you’re working with an organization that will be reliable in providing you with the financial assistance you need?

Know exactly what your needs are

Before you even begin to look around for the right leasing or financing partner, you need to know exactly why you are looking for help in the first place. What are the exact services you need? How much cash flow do you have moving in and out of your business’s accounts? Are you registered as a business yet? The answers to all of these questions could have an impact on your decision.

Even if you know that you’re just getting started out and believe that all you need in terms of your finances is a checking account and one or two pieces of equipment, you need to consider the growth potential of your business in the coming years. Will you be expanding so much that you’ll need a loan? Does your equipment need to be regularly upgraded?

Take the time to figure out what your needs are as a business before approaching any leasing or financing partner, because that will help you to find the most effective partnership.

Analyzing potential partners

After you have determined what your needs are as a company, you can start to more closely analyze potential leasing and financing partners.

When choosing the right partner for your company, you should first look to make sure that it has a history of excellence in providing services for your company’s industry and that those services fit your business’s needs. As you would with any other potential business partner, do some research into the company’s reputation, including its track record of success and any reviews that are available from previous clients.

Customer service should also be an extremely important factor in your decision. Your business’s needs are important, and anyone that you are in contact with at a potential leasing or financing partner should be attentive to them. They should be extremely responsive and willing to have an in-depth conversation with you about your company’s goals and what the best leasing or financing strategies are to fulfill them will saving you money and hassle. Knowledgeable sales representatives can be a great help in clarifying your options.

Make sure that you’re taking note of any potential red flags, as well. For example, you should never be expected to do business without a contract, and you should never have to pay any fees up front. If your potential partner has terms that seem unreasonable, then you shouldn’t have to feel as though you’re locked in to using their services. You should be absolutely comfortable with the decisions that you make.

Using Equipment Leasing Company

Pick a leasing company that will understand your needs for current and future needs. The goal as a customer is to find a company that will satisfy your financing / leasing needs for the next 12 to 18 months. Creating that budget with a equipment leasing company will help your business to grow.