3 Small Business Administration Loan Programs To Finance Your Franchise

Franchises are a simple and effortless way to jump right into the business world - to finally be your own boss.

Plus, franchises are probably the easiest businesses to get financed because they usually do not come with a lot of the start-up risk (unknown risk) that banks and other business lenders tend to shy away from. Since most franchises come with strong brand names, proven profitability and cash flow track records and tend to perform well in almost any location (globally), these business models have the propensity to fly through the loan underwriting process and go from application to funding in no time flat.

In fact, the Small Business Administration (SBA), in hopes of speeding up their funding process and funding more franchise loans, have created a "SBA-approve franchise" list - a list of franchises that the SBA has already vetted through theirwriting process .

According to Jim D, a former moderator for the SBA.gov website;

"SBA-approved franchises are select business opportunities which agreements have been accepted by the SBA. When it comes to securing an SBA-backed loan, those applying for an approved-franchise have it easier and quicker. a streamlined review process that expedites their loan application. Because the particular franchise is pre-approved, the loan review is less complex and focuses on specific aspects of that brand's business plan. "

So, if the SBA likes franchises so much, what loan programs do they offer?

3 SBA Loan Programs For Franchises

First things first. The SBA does not directly provide loans to business or franchise owners. Thus, you will still have to take your loan request to a SBA lending bank or financial institution. However, these origins also know that the SBA likes proven franchise businesses and are more than willing to review and process your application.

When seeking a SBA loan for your franchise you should focus your specific financing needs and match them to the SBA's loan program as follows:

1. SBA 7 (a) Loan Program : This is the SBA's flagship program designed to fund almost all aspects of a business.

According to the SBA, the 7 (a) loan program can be used:

• To provide long-term working capital to use to pay operational expenses, accounts payable and / or to purchase inventory
• Short-term working capital needs, including seasonal financing, contract performance, construction financing and exporting
• Revolving funds based on the value of existing inventory and receivables, under special conditions
• To purchase equipment, machinery, furniture, fixtures, supplies or materials
• To purchase real estate, including land and buildings
• To construct a new building or renovate an existing building
• To establish a new business or assist in the acquisition, operation or expansion of an existing business
• To refinance existing business debt, under certain conditions

This program has a maximum loan amount of $ 5 million with the average, in 2012 - the last published figure, being around $ 337,730.

As most SBA loans come with longer loan terms making monthly payments even more affordable, loan maturities for real estate can go out to 25 years, up to ten years for equipment and up to seven years for working capital.

Now, all SBA loans are assumed to be fully collateralized by either business or personal assets. However, while the SBA expects this, they will not decline a loan based solely on the lack of adequate collateral.

Lastly, know that these loans do require that the borrower provide 20% or more as a down payment or their own equity in the deal. Thus, the SBA will only guarantee 80% of the needed amount.

As you should be able to see, this SBA program can cover almost all franchise financing needs from real estate purchase and development to business equipment to working capital needs. So, if that is what you need to buy or grow your franchise, start here.

2. CDC / 504 Loan Program : The 504 loan program, like the 7 (a) program, is great for franchises. However, this program is limited to real estate and equipment purchases only.

According to the SBA, the 504 loan program can be used for;

• The purchase of land, including existing buildings
• The purchase of improvements, including grading, street improvements, utilities, parking lots and landscaping
• The construction of new facilities or modernizing, renovating or converting existing facilities

But, the real benefit with this loan program is that the equity portion or down payment required from the borrower is lower - usually around 10% - thus, requiring less out of pocket expense.

How this program works. This program was designed to help facilitate additional business growth and development within community areas. Thus, when a 504 loan is requested and approved, a local Community Development Corporation (CDC) - the community part of the loan - will fund and guarantee up to 40% of the loan request, a local SBA approved bank will fund 50% of the loan request leaving the remaining 10% from the borrower. Three partners all working for the same goal - the long-term success of your franchise.

This program can provide up to $ 5 million for businesses that can and will create jobs in the community, up to $ 5 million for businesses that provide declared public benefit such as energy reduction or alternative fuels as well as rural development businesses, minority, women or veteran businesses, export companies - just to name a few - these are stated goals that are known to have public benefit and as such the SBA wants to fund these companies. And, up to $ 4 million for small, job creating manufacturing firms.

Lastly, to make these loans and their resulting payments more affordable - ensuing the long-term success of the borrower - the SBA will allow loan terms of 10 and 20 years.

3. SBA Express Program : The SBA express program is like the little brother of the SBA's 7 (a) loan program with several benefits and restrictions.

First, this program offers a hastened review process. In fact, the SBA guarantees that your express loan application will receive a response in less than 36 hours. But, while you may receive a response, this does not mean you will receive an approval. It just means that you will know that the SBA has received your application and they will usually ask for additional information from you at that time - but, at least you know it is being worked.

Second, the maximum loan amount under this program is only $ 350,000. Which is not a huge amount these days but might be enough to get you into the franchise of your dreams - especially when compared to the average loan amount of the full 7 (a) program of around $ 337,730.

Third, the SBA will only guarantee up to 50% of the loan amount - meaning that more of the risk of the loan will fall back onto the bank or lender. Yet, if your deal is strong enough, this 50% guarantee might just be the difference between approval and denial.

Lastly, these loans offers loan terms up to 7 years only and can be used for almost any business capital need.

What Is A Small Business?

Now, to qualify for a SBA loan, your franchise has to meet the SBA's small business definition of:

• Be for-profit.
• Have up to 500 employees - up to 1,500 for manufacturing.
• Have under $ 21 million in annual receipts - less for certain businesses or industries.

Which nearly all individual franchise businesses fit.

Conclusion

Franchising is a great way to jump into the business world with a proven, well known business model. Yet, like almost all businesses on the planet, financing that franchise either to get it started or to grow it is still a hard hurdle to overcome.

Yet, as stated and hopefully shown, franchises do tend to get more favorable approval rates when using government guaranteed fund programs like these SBA loans . And, it is not just that the SBA views these types of businesses in an encouraging light but so do banks and other business lenders - those other partners needed to get your SBA loan approved and funded.

However, just because your franchise is or is not on a SBA-approved list and that your loan request and use of funds meets these criteria, that does not mean that you will be automatically approved. The only way to know for sure if you and your franchise will be approved is to apply. And, since you have to apply no matter what option you chose, you might as well apply with a financial organization or business funder that already works with the SBA - it can only double your chances of getting the capital you need to fully realize your franchise dreams.

Computer Game on Mars; Design for Communication Device

As the pictures from the Mars Rover and the Mars Satellites come back in greater detail we will begin to see computer video games, which will have the Martian Surface as their backdrop. These computer video games are becoming more and more defined and realistic. NASA themselves have put together virtual reality and augmented reality settings to train astronauts and the CAVE Institute has also been gathered data sets and digital pictures and video to make VR Mars experiences a reality here on Earth. Currently there are over 1.6 million digital high quality pictures of the Martian Surface which have been beamed back to Earth and this is enough to make a super Xbox 360 experience for you in your own living room your new Plasma High Definition TV.

One of the challenges now to go with that backdrop is to design realistic components, space surface vehicles astronaut suits, space habitats and devices, such as hand held communication devices that the video game characters will use. Now then this will take a little extra thought, as it is important for video programmers to stay ahead of the game. First off these astronauts will not be holding in their hands anything looking as silly as a cellular phone. Chances are they will communicate via devices on their neck which will sense the vibrational movements of their vocal cords and send them via voice activated sound or directly to a device in their fellow astronauts ear or a tiny microchip inside the ear near the ear bones, which will run off the electromagnetic induction of a miniaturized unit catching pulse and brain waves to power it up. So to be realistic as a gamming programmer you need to be thinking here.

Credit Managing

Most of the people have debts or credits in varying forms such as mortgage loans, student loans, and auto loans or loan in the form of credit card balance to be paid by him. Availing loan from financial institutions has become some thing that can not be avoided by a person these days. Borrowing money from financial institutions in times of need is not a bad thing until you make default in repayment of the loan.But having too much debt may spoil a person's life by causing never ending financial problems to the borrower. In such case you will have to analyze your financial security by finding out your debt to income ratio.

Managing your credit - Is it a difficult task?

Finding out your debt to income ratio is known as the best method to understand whether you are overloaded with credits beyond your repayment capacity. While calculating the debt to income ratio includes both good and bad debts of yours to get the correct picture of your present financial condition.

If you want to calculate the credit overload of your bad debts just add up the total of the amount that you are paying for repayment of your bad credits to your monthly income. Then multiply the number that you are getting from this calculation with hundred to find out the percentage. The result will be your debt to income ratio. Now you will be able to know the exact percentage of your monthly income that you are spending to repay a bad debt. If the debt to income ratio exceeds 10%, you will have to do some thing to manage your credit as it is an indication to the fact that you are over loaded with credits.

Managing total debt

The same method of calculation can be used to analyze your total debt picture by including both good and bad credits. Add up all your payments including the credit card payments, student loans, rent, child support or alimony etc. while you calculate the ratio of your total credit position.

If the final out put is below 30% you have nothing to worry about your financial position and if it exceeds 40% you should do some thing to manage your credits that goes beyond your repayment capacity.

The Heart of Your Computer

The Central Processing Unit (CPU), the heart of your computer, is located on a single integrated circuit (IC) chip. The IC chip also contains the memory (the data that you have created or captured and stored) of your computer. Some technicians refer to the memory as the brain, but a brain thinks, reasons, and forms ideas, whereas memory, like a library of books, only gives you back what it has.

Most folks know about the IC chip, the most important (and most expensive) component of their computer. Those who do not know that usually learn it when a chip manufacturer (such as Intel, AMD, Nvidia, or other) reports that they will send a software patch to correct a vulnerability in chips they sold or placed in electronic devices, like your computer. Think of a technology vulnerability like a door left unlocked in your house. Someone unwanted might enter your house. A vulnerability in your IC chip provides an opportunity for someone to get access to your memory data, to steal it, mess it up, or lock it up until you pay them a ransom to get a code to release it.

But, remember that your computer has a heart, the CPU, which processes the patches of vulnerabilities. Find out who sends the patches to your computer and how. Microsoft supports your computer that contains a Microsoft Windows operation system. Apple supports your iPad or other Apple product. You may have a Linux operating system and need to get your patches from Redhat or other Linux supporter. Other types of microprocessors exist as well. Check your purchase data to learn about them. When you find the correct one, contact them and find out when they push the patches electronically to their product users. Probably your operating system support company sends a massive electronic push once per month, a smaller weekly push, and (in an emergency to correct a serious IC chip flaw), as soon as the patch exists.

You may leave your computer on all of the time. If you do, your operating system support company regularly sends the patches to your computer. Check your security history file to see which ones you have (you want to see current dates). Contact the sender if you want to know more about the patch. If you turn your computer off at the end of your day, pick one day each week in which you will leave it on to get the patches. Also, say a prayer for your CPU. As long as it has a heart, you have a computer. #Tag1writer

Why Most New Realtors Fail

Being a realtor can be a lucrative career, and some real estate agents have even managed to reach millionaire status. But this is the glamorous side of real estate, the side that often attracts new realtors into the industry. The unfortunate part is that most new agents come in with big business dreams which end up getting destroyed during their first year in business.

We have put together what we feel are some of the largest factors leading to new realtor failure. Make sure you avoid these mistakes at all costs!

Not Having a Financial Plan

Brand new agents often forget that decisions are a drawn out process. It can take several weeks or even months to close a deal. That large commission cheque takes time to generate and even more time to actually arrive in the mail. Often, new agents forget that they need money in the bank to last them for several months until a steady flow of missions are coming in. Your first few months are going to be tough, and you will be lucky if you get your first sale within the initial 90 days. Without planning, new agents drain whatever savings they have, giving them panic as they wait for the next deal to close. This is one of the largest reasons new realtors drop out of the industry - they can not hold their ship together long enough for money to start coming in.

Solution: Keep at least six months worth of savings in your bank account before jumping into the real estate game. Make sure you have enough tucked away to cover food, expenses, and overhead until you can create some positive cash flow. This way, you can transition into your new agent role without losing your shirt in the process.

Not Being Aggressive Enough

New realtors can be self-conscious and nervous. Not having done any deals, or even the idea of ​​being a person person, scares the daylights out of them! But the reality is that business is not going to come knocking on your door. You really have to push hard to bring those deals in.

Agents have to swallow their fears and jump into the industry knowing that it will take time to learn and become a pro. You absolutely will screw up, but absolutely you will learn and grow from it.

Solution: Get out there and be aggressive. Everyday you should do at least five new things to push your business forward. Whether that's teaching yourself a new marketing technique, prospecting for new clients, or attending a networking function, every new day is another opportunity to try and get your name out there and build your business.

Being Scatter Brained

Having a plan is the key to success for any new realtor - actually, for any realtor, new or old. Without a plan, your hard work is going to spread across so many tasks that nothing really gets done properly, and everything risks being done poorly.

Solution: Get a comprehensive plan together. We recommend that any new realtor should have at least three plans: a financial plan, a business plan, and a marketing plan . These three documents should help keep your business on track. One important thing that you need to develop into all of your plans is a weekly action list. Break down all the tasks that you need to get done over the year and divide them up into bite size tasks you can do each week. This way, you're not overwhelmed on where to start on your plans, but rather have a clear path of action to take everyday.

Conclusion

Being a realtor can be one of the most rewarding self-employed careers one could ask for. But to achieve six-figure learning, you really have to focus to avoid pitfalls. These three tips for new real estate agents should help any new Realtor avoid first year failure in the industry.

Credit Debt Settlement - The Way Out

Do you have a lot of debt that you do not think you can pay off or is troubling you day in and out? Are collection agencies calling? Are your bills piling up? Do not stress about it-you can find a way out. There are plenty of people who are in your exact position as you read this and many in the past have dug themselves out of debt as well. It's important to know it is possible to get your life back in order and to stop the trouble with your creditors but it will require some action on your part to find the right solution that fits you.

About 43% of American families spend more money than they earn every year, that money is usually spent on credit cards purchasing things that are not even necessities. The fact of the matter is American's have an appetite for debt and it is one of the most common financial problems people experience (and suffer through). The average household has $ 8,000 in credit card debt and that's actually considered on the low end compared to many of the people who seek settlement. You might even have substantively more than that. If you've gotten yourself in debt then seeking credit debt settlement is your best option for getting out.

There are many firms available all over the country that can help you get set up with a payment plan and negotiate with your creditors for you. If you are afraid of the prospect of going into a firm and dealing with the fees and paperwork, there are many online options that can help get you set up without as much stress. There are free quotes online and you can talk over the phone with a representative in many cases to get a better perspective on your debt and the settlement process.

Basically credit debt settlement works by having the firm you hire contact and negotiate with your creditors to reduce your debt and set up a capped monthly payment for you to pay. This means you'll only pay one bill and it'll pay off your reduced debt across all of your creditors. This is a huge convenience and stress relief for people who are plagued by relentless phone calls from collection agencies and bills that come at the same time.

Using one of these credit debt settlement companies does come at a price though. Many places will charge a set fee or percentage based on your amount of debt, so this can sometimes be quite expensive. It's well worth the price though since you recoup the investment with the money you save on the reduced amount of debt.

Consumers owe nearly $ 2 trillion dollars in debt, this should hopefully put your situation into perspective a bit more and show you're not alone and there are many others in the same boat as you. If you want a way out, definitely get a quote or evaluation from a credit debt settlement company, many online websites will allow you to do this free of charge.

Reasons to Hire Airport Transfer Services

Plan on taking a trip abroad but worried that you might get too stressed especially when traveling? Do you want to travel in style like VIPs do? Worry no more as there are airport transfer services that offer your great convenience and protection while you are in a foreign country. This kind of service will make your vacation go smoothly as planned.

Why hire an airport transfer service?

Ease

Airport service assures you that you will reach your booked hotel comfortably. You will never get lost in a foreign country as the driver is well trained and knowledgeable of the city. Once you check-out from the airport, a driver is already waiting for you on the hired vehicle of your choice. You will not have to worry on looking for a cab at the airport especially if you are traveling with an elderly or with your kids. Most importantly it does not feel awkward telling a cab driver the directions to your hotel especially if you do not even know where it is situated.

Security

Traveling and riding a cab in a foreign country is scary because you are not familiar with the different routes. Hiring an airport transfer service can assure you that you can reach your destination safe and sound. The highly skilled drivers are trained to drive defensively as well as protect and guard the passengers. So traveling would be stressed-free and worry-free.

VIP Treatment

Traveling in style and luxury like a VIP is the ultimate goal of the airport transfer service. This is true especially if you are able to hire a deluxe vehicle like a limousine. You will arrive to your destination with class and fashion.

Travel with your group

If you are having a family vacation, this would be the best choice to take. Airport transfer service offers vans or coasters that can accommodate a large group. So there is no need for you to travel with different cabs because you all can't fit in one.

These are just some of the reasons why there is a need to hire an airport travel service when going to a vacation. This kind of service can be offered on your travel agency or you can look at any services online. There are a lot of services offered online that you compare especially with their deals and services included. Read first their reviews to make sure that you have booked a comfortable, not so pricey and nice service. Make sure that you have booked a few days ahead on your planned trip so there will no issues.

Finally, this is your vacation intended to make you unwind and take pleasure on what the foreign country can give you. Do not be stressed by not being able to get a taxi cab when you check-out from the airport, not arriving in your hotel on time or simply because you are lost. So hire the best airport transfer service to have an amazing vacation of your live.