Comparative analysis between debt and equity financing

Posted on April 10, 2012 by admin

Business owners looking for capital to fund their business operations are constantly analyzing between debt and equity financing. There are two main source of capital a business owner can obtain to develop his business are debt and equity. But you are required to keep in mind that the debt and equity financing both offer benefits as well as drawbacks. Therefore, you are required to analyze the advantages as well as disadvantages before getting capital to fund your business. There are many businesses that are using both combinations to support their business venture.

Complete information on debt financing:
In debt financing, you can take out loan for your business and you are required to pay back over time along with the interest on it. The business organization can apply for a short or long term loan. Financial institutions that offer debt financing for the business organizations are bank or government sponsored agencies like the Small Business Administration.

What is equity financing?
When the investors invest in your organization is known as equity financing. These investors after investing their fund own a part of a share of the company. You can get this fund from friends, family members as well as angel investors or venture capital firms. Equity financing helps to provide capital to start a new business and the fund can be used for the development of an organization as well. There is no interest charged on equity financing.

Know about the benefits and drawbacks of debt financing:
The business owners can enjoy tax deduction as the interest imposed on the business loan is tax deductible. In debt financing, you’ll not share your ownership with anyone else. Therefore, you can retain control over your business. Unlike stockholders, the lenders will not get any margin from the profit earned by your company.
However, in debt refinancing you are required to pay back the owed amount along with the interest charged on it. Therefore, if your company does not have regular flow of cash it might incur overwhelming debt. If the company defaults on its payment, then it might declare bankruptcy. Poor credit report of your company might compel you taking out loan against collateral.

Know about the benefits and drawbacks of equity financing:
In equity financing you are required to pay back a share of the company profit. If your company fails to make profit, then the investors will not get a penny. You are not required to put your property on stake; therefore you’ll not lose your property.

But equity financing mean that you are not the sole owner of your business as your business ownership will be shared with your shareholders.

Stewart Smith is a financial writer associated with Oak view law group. He writes on various topics like bankruptcy, credit card debt elimination and how to consolidate debt. “http://www.ovlg.com/debt-consolidation/“


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Merchant Cash Advance: Up to $1,000,000 in Two Weeks

Posted on April 5, 2012 by admin

Brought to you by Steve Roth

206579 credit card gold and platinum3 e1333621528949 Merchant Cash Advance: Up to $1,000,000 in Two WeeksMerchant cash advance is an option available to small business owners who need money fast. On many occasions, I have helped save a client’s business from closing down by using a merchant cash advance to get them money fast. These clients usually need the money to pay rent, pay off taxes, inventory, expansion, lawsuits, working capital, expansion, etc. This money is optimal for business owners in desperate need for emergency funds and don’t have the time nor credit scores to secure funding.

In this article, I’m going to go over some of the features of a merchant cash advance. I hope you find it useful and informative.

Dо уоu wаnt tо start уоur оwn business? If so, thеn уоu muѕt bе familiar wіth thе fact thаt уоu wоuld nееd funds fоr that. Aѕ а matter оf fact, іn order tо run а business whеthеr small оr large, уоu wоuld nееd funds. Thеrе аrе vаrіоuѕ sources frоm whеrе уоu саn gеt funds fоr уоur business ѕuсh аѕ bank loans, collateral, mortgage аnd mаnу more. However, thеу аrе nоt considered аѕ thе mоѕt convenient method tо acquire funds fоr уоur nеw business ѕіnсе thе process оf obtaining funds frоm thеѕе sources аrе quіtе time consuming.

Unlіkе оthеr sources оf gеttіng funds, fоr merchant cash advance іt саn bе obtained quickly аnd rapidly. It includes lеѕѕ paperwork аѕ compared tо loans оr mortgage. It іѕ considered tо bе thе mоѕt convenient method аvаіlаblе іn thе market today. Wіth а merchant cash advance, businesses аrе capable tо obtain thе funds thеу require tо resolve thеіr temporary cash flow requirements. In this, уоu dо nоt hаvе tо undergo аll оf thе procedures thаt соmе wіth obtaining а loan frоm а standard bank. Thеrе іѕ оnlу оnе thіng thаt уоu wоuld nееd tо worry аbоut with a merchant cash advance аnd thаt іѕ paying bасk thе amount. Unsecured small business loans аrе perfect fоr thоѕе whо аrе іn urgent nееd оf cash fоr thеіr business.

Thеrе аrе basically thrее simple steps thаt wіll hеlр уоu obtain thе merchant cash advance.

Thе vеrу fіrѕt step іѕ tо gеt setup frоm аn approved credit card processor. Thіѕ іѕ bесаuѕе уоu pay bасk уоur amount оn thе basis оf thе money оf thе credit car sales уоu produce. If іn аnу case, уоu generate mоrе thаn expected, уоu саn utilize thаt money fоr уоur оwn business requirement. An individual’s payback rate іѕ аt lеаѕt 10% оf thе daily credit card sales аnd thіѕ rate іѕ determined аt thе time оf applying fоr thе loan bу thе company.

Thе ѕесоnd step includes application аnd approval. Aftеr opening аn account wіth аn approved credit card processor, аn individual саn apply fоr а Merchant Cash Advance. Yоu wіll nееd tо provide уоur basic details ѕuсh аѕ monthly credit card statements, уоur personal details аnd professional details. Yоur information wіll thеn bе verified bу thе company аnd уоur application mау gеt accepted іf thе company finds уоu аnd уоur information genuine.

Contractual agreement іѕ thе lаѕt step іn acquiring merchant cash advance. Onсе уоur application іѕ accepted bу thе company, уоu wіll nееd tо sign а contract wіth thе company. Thе amount оf thе merchant cash advance, thе payback rate еtс wіll bе included іn thіѕ contract. Therefore, іt іѕ аlwауѕ recommended tо read thе terms аnd conditions carefully.

Steve Roth is the President and Founder of Chicago Business Capital. Go to http://www.chicagobusinesscapital.com to find out more about this merchant cash advance program as well as the other alternative funding options we have available for individuals and businesses.


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What is VoIP?

Posted on March 27, 2012 by admin

VoIP?

If you have never heard ofVoIP then you’re about to be amazed.

VoIP is better known as voice over Internet protocol. VoIP is a way of turning analog audio signals, like what you hear when talking on the telephone and turning them into digital media that can be transmitted over the Internet.

VoIP is also referred to as IP Telephony or Internet telephony. It’s another way of making telephone calls with the difference of making the calls less expensive.

The benefits of the voice over Internet protocol over the standard phone system are many. The most important reasons why most people are switching over to VoIP is the cost and flexibility of use.

VoIP has the state of the art technology that has the potential to rework the world’s phone system.

VoIP is basically the reinvention of the wheel. The main thing about VoIP is that there isn’t just one way to make a call.

There are at least three different ways to make a call with VoIP phone:

  1. ATA (also known as Analog Telephone Adapter) – Allows you to connect a standard phone to your computer or Internet computer. The ATA takes the analog from your standard phone and converts it into digital data for a transmission over the internet.
  2. IP Phones – These phones look like normal phones with a handset, cradle and buttons but instead of having the standard RJ connectors, IP phones have an RJ 45 Ethernet connector. IP phones connect directly to your router and have all the hardware and software required to handle the IP call.
  3. Computer to Computer – This is the easiest way to use VoIP. You don’t have to pay for long distance calls. There are companies providing low cost software that can be used for this type of VoIP.

In conclusion, the main advantages of VoIP is the much cheaper cost and the flexibility.

Steve Roth is the president and founder of Chicago Business Capital. Call Chicago Business Capital today at 847-509-3419 to find out more about VoIP and save your nationwide businesses lots of money while upgrading your telecommunication services.


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Alternative Funding Options – 6 Great Tips!

Posted on March 21, 2012 by admin
Stacks of hundred dollar bills 150x150 Alternative Funding Options 6 Great Tips!

Funding Options

Alternative funding options are very important to know about if you’re a borrower. Almost everyone knows that funding options are limited in this current economic climate. Trying to get a loan from banks is a horrible experience. The paperwork sucks and in most cases, the bank rejects your application after many grueling months of waiting for an answer.

However, there are many alternative funding options available to you that most people don’t know about. Some of these alternative funding options and their rates are even lower than bank rates while being faster and easier to attain.

Below are a list of 6 different alternative funding options available to you even if your credit is terrible.

  1. International Asset Based Lines of Credit – This is the best of the alternative funding options because it’s the cheapest money on the streets. There is no credit, job or income verification checks. Line of credit established within 1-2 weeks, high loan to value, securities trading on domestic and international exchanges qualify and the line of credit is non recourse. Funding amounts range from $150k to $100 million dollars and is based on the value of the securities in your portfolio. Best of all, these loans can be used for just about any purpose.
  2. Quick Funding Business Loans – These loans are fast funding, usually within 3 weeks. Credit scores can be bad and still qualify. You don’t need credit cards to qualify for funding. Rates are on the higher side but these types of loans are used as a temporary bridge loan until credit hopefully improves. Funding amounts range from $5k to $900k.
  3. Hard Money Loans – These types of loans are for residential or commercial investment property. Terms are usually 6 months to 2 years and rates range from 8-15%. In many cases with the commercial hard money requests, credit isn’t as big an issue.
  4. Other types of alternative funding options include: Invoice Factoring, Purchase Order Financing and Equipment Leasing.

These alternative funding options can be used for:

  • Real Estate
  • Businesses
  • Luxury Purposes
  • Mortgages
  • Taxes
  • Renovations
  • Personal uses
  • And more!

I hope these 6 tips on alternative funding options have been useful for you! For more tips and videos, visit http://www.chicagobusinesscapital.com

The author of this article, Steve Roth, is the President and Founder of Chicago Business Capital. Go to http://www.chicagobusinesscapital.com for more alternative funding options and tips.


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Asset Based Revolving Line of Credit up to $100,000,000

Posted on March 1, 2012 by admin
Stock Market 150x150 Asset Based Revolving Line of Credit up to $100,000,000

asset based revolving line of credit

Asset based revolving line of credit lending programs are very popular these days. The main reasons for its popularity is that it’s a low rate, non recourse (not personally liable) line of credit that works like a HELOC (Home Equity Line of Credit). Like a HELOC, the borrower only pays interest on the portion of the line that is used. This makes it cheaper than a loan, where the borrower has to pay interest on the full amount borrowed, whether or not they use all the borrowed money.

The asset based revolving line of credit is based on the value of publicly traded securities (such as stocks, bonds and mutual funds) and other assets owned by the client. The asset based revolving line of credit is non recourse, fast funding with limited documents required.

Below are some of the great features of asset based revolving line of credit:

  • Funding amount ranges from $150,000 to $100,000,000
  • Low rates, 2-4% and 1-4 points
  • Works like a HELOC (Home Equity Line of Credit) – only pay interest on portion of funds used
  • Revolving line of credit
  • Non recourse
  • Credit line available within 2 weeks
  • Limited documents
  • Foreign nationals with foreign securities accepted
  • LTV (Loan to Value) ranges from 70-99% of assets value
  • Client receives 100% of portfolio appreciation
  • Credit not an issue
  • Don’t need to sell your shares

Below are some of the great benefits of an asset based revolving line of credit:

  • Residential and commercial real estate
  • New and existing business financing
  • Luxury purchases like yachts, cars and fine art
  • Business acquisitions
  • Franchise financing
  • Business expansion
  • Equipment leasing
  • Working capital
  • Taxes
  • Personal use

Below are securities and other financial instruments that don’t qualify for our asset based revolving line of credit:

  • Securities held in an IRA or 401k plan
  • CMO’s (Collateralized Mortgage Obligations excluding Fannie Mae and Freddie Mac only)
  • Bank Guarantees
  • Stand By Letters of Credit

An asset based revolving line of credit, with its low rate, limited docs and simple process is an excellent alternative funding option for you or your business.

By Steve Roth
Financial Expert
B.A. Northwestern University
http://www.chicagobusinesscapital.com
 

Click  here to grab our free video showing you how to get up to $100,000,000 in funding. Watch the video right away and put to use the tips to work for you immediately.

 


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Check Out This Couple’s Dream Home We Helped Get Funded!

Posted on April 5, 2011 by admin

Chicago Business Capital Helps Provide $225k Funding for an Owner Occupied Purchase of an SFR in the North Suburbs of Chicago.

SFR Norridge 11 Check Out This Couples Dream Home We Helped Get Funded!

Chicago Business Capital helps fund $225k for an owner occupied SFR in north suburbs of Chicago

A husband and wife had trouble getting a conventional loan because one of the spouses had a recent bankruptcy. We were able to help provide them with a $225k conventional loan fast.

 

Let Chicago Business Capital help fund your next residential or commercial real estate project.

Please call Steve at 847-509-3419 or email at steve@chicagobusinesscapital.com to discuss your loan scenarios.

Chicago Business Capital helps provide up to $200,000,000 nationwide commercial and residential funding for:

Refinance Cash-Outs
Refinance Rate and Term
Purchases
Fix and Flips
Construction
Securities Backed Line of Credit
REO’s
Distressed Properties
Business Financing
Accounts Receivable Funding
Merchant Credit Card Advances
Purchase Order Financing
And much more!!!

For more information, please contact:

Steve Roth
Chicago Business Capital Capital
Phone) 847-509-3419
steve@chicagobusinesscapital.com
www.chicagobusinesscapital.com


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Check out this couple’s dream home Chicago Business Capital helped fund!

Posted on April 5, 2011 by admin
SFR Norridge 1 Check out this couples dream home Chicago Business Capital helped fund!

Chicago Business Capital helps fund an owner occupied SFR in north suburbs of Chicago.

Chicago Business Capital Helps Provide $225k Funding for an Owner Occupied Purchase of an SFR in the North Suburbs of Chicago.

A husband and wife had trouble getting a conventional loan because one of the spouses had a recent bankruptcy. We were able to help provide them with a $225k conventional loan fast.

Let KPCP Merchant Capital help fund your next residential or commercial real estate project.

Please call Steve at 847-275-6980 or email at steve@chicagobusinesscapital.com to discuss your loan scenarios.

Chicago Business Capital helps provide up to $200,000,000 nationwide commercial and residential funding for:

Refinance Cash-Outs
Refinance Rate and Term
Purchases
Fix and Flips
Construction
Securities Backed Line of Credit
REO’s
Distressed Properties
Business Financing
Accounts Receivable Funding
Merchant Credit Card Advances
Purchase Order Financing
And much more!!!

For more information, please contact:

Steve Roth
Chicago Business Capital Capital
Phone) 847-509-3419
steve@chicagobusinesscapital.com
www.chicagobusinesscapital.com


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Get a real estate loan or line of credit backed by you or your client’s stocks, bonds, mutual funds, IRA’s etc.

Posted on March 5, 2011 by admin


As we are nearing the end of the first quarter of 2011 and there may be some loans not closing due to the rigid requirements of the Lenders, so I want to remind you of the advantages of the Securities Based Line of Credit.
stock market going up Get a real estate loan or line of credit backed by you or your clients stocks, bonds, mutual funds, IRAs etc.
If any of the following pertain to you and your clients please consider Securities Based Line of Credit to solve your financing problems.

* Prospective Stock Loan Borrowers: Self –Employed, State Income, NO DOC, Stated Assets, Bad Credit or No Credit, Foreign Nationals, Retired, Unemployed, Owner –Builder Construction.

* Difficult Properties to Finance: Hotels, Condo-hotels, Condo Conversions, New Condo Projects, Unique Properties, Residential & Commercial Land, Log homes, modular homes, co-ops, etc.

* Mortgage Broker: Your client can apply for a mortgage. The Securities Based line of Credit can be used for the “down payment” for the purchase of the home and the mortgage financing. You get TWO loans.

* Real Estate Broker: If your client is “short” on cash to buy a home, the Securities Based Line of Credit is perfect. Or your client can’t qualify for a mortgage, but owns securities that can be used to pay CASH for the home. Seller financing is an option, because buyer has the Loan Funds to negotiate a successful sales contract.

* Securities Owner: Why SELL your securities NOW? Most securities will increase in value. KEEP your securities and enjoy the appreciation, dividends, value increases that belong to you. Your securities as collateral will get the cash that you need, without selling your securities and also prevent a capital gains tax.

Please contact me, if I can help you in any way. Quick closings will bring you extra money for your projects.

Wishing you a great 2011!!!

Steve Roth


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Chicago Business Capital, Helping to Provide Funding Nationwide, Helps Fund Another Project!!!

Posted on January 30, 2011 by admin


A Chicago borrower with credit scores in the mid 600′s received a Non Owner Occupied residential refinance cash out for a property on the west side of Chicago for $75,000.
handshake34 Chicago Business Capital, Helping to Provide Funding Nationwide, Helps Fund Another Project!!!

Let CBC help fund your next loan. Call 847-509-3419 or email at steve@chicagobusinesscapital.com

Chicago Business Capital helps provide Nationwide funding for the following projects:

* Commercial owner and non owner occupied refinance cash outs, refinance rate and term, purchases, construction, rehab, buy and hold and more!

* Residential non owner occupied refinance cash outs, fix and flips, rehabs, purchases, buy and hold and more!

* Commercial and Residential 24 hour and 30 day funding for back to back simultaneous closings for REO, wholesale, short sale, distressed properties and more!

Chicago Business Capital, 3149 Dundee Road #257, Northbrook, IL 60062, O) 847-509-3419 C) 847-275-0185, wwww.chicagobusinesscapital.com, steve@chicagobusinesscapital.com.


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How Residential Investor Rehab Loans Help Investors

Posted on October 16, 2010 by admin

Investor Rehab loans (also knows as Hard Money Loans) are currently filling a need for investor who have an ability to find deals, but have found themselves unable to fund projects with conventional financing.

The Real Estate Game has changed greatly for investors. Stated income and No Doc loans have become very difficult if not impossible to obtain from conventional lenders. Of course the amount of opportunities in this post bubble burst environment is endless. With REO’s, Short Sales, Pre-Foreclosures, etc… flooding the market, many investors may see opportunities on every corner. However more investors are finding themselves frustrated when attempting to locate sources to fund these opportunities.

Chicago Business Capital Rehab Loans For Investors. How Residential Investor Rehab Loans Help Investors

Chicago Business Capital Rehab loans for investors.

Many investors therefore have turned to wholesaling, and utilizing double closings to generate revenues for their businesses. While this is great for instant cash infusion, it leaves something to be desired for an investor who is used to rehabbing properties and taking the lion’s share of the profits by land lording or selling to an end buyer.

Rather than a traditional Loan to Value based on the purchase price of the property, value is determined based on After Repair Value or ARV. This value is simple to obtain, by looking at retail comparable sales. An appraiser or real estate broker may be able to assist you in determining an After Repair Value.

It is important to note that the Value is the most important factor when determining eligibility for a Residential Investor Rehab Loan. The lender has greater risks than that of a conventional lender, and by putting so much weight into the equity of the property, you can imagine how important the value becomes.

Most Residential Hard Money Lenders lend 60-70% of After Repair Value. Meaning that if you multiply your ARV by .70, you can see very easily what your maximum project costs can be. If you were considering a rehab project, it would be important to make sure that your purchase price, rehab costs, closing costs, and payments are under 70% of the After Repair Value. If you start every project with the end in mind, it is most beneficial.

An Investor Rehab Loan will give the ability to also include their rehab and closing costs into the loan. This is HUGE for investors who are having trouble locating in the first place. It allows the investor to truly leverage their capital to fund more deals simultaneously by rolling hard costs into their financing.

You can see how easy this makes the rehabbing process in comparison to traditional financing. Utilizing investor rehab loans will increase the overall Return on Investment for all projects, in addition to expanding the amount of projects that an investor can take on at one time. All in all, this type of funding can increase an investor’s bottom line exponentially.

Qualifying for a Residential Investor Rehab Loan is different than qualifying for a conventional loan. Conventional lenders make it harder than needed when the numbers work for the investor and the lender.

Michael Culler


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