Start-Up Financing - Get a SBA Loan for Start-Up, Franchise, or Business Purchase

!: Start-Up Financing - Get a SBA Loan for Start-Up, Franchise, or Business Purchase

One of the best ways to obtain start-up financing for a small business is the SBA 7(a) Loan Program. The SBA (Small Business Administration) is a governmental entity whose sole purpose is to support small business in the United States. One of the programs it sponsors is the 7(a) Loan Program which allows new businesses to take advantage of bank financing.

There are 3 ways to use the SBA 7(a) Loan program when looking to finance your first business using a bank loan. We'll cover each and how they relate to the 7(a) loan program.

Start-Ups
The first business approach that can be utilized under the 7(a) program is starting a business from scratch. This means you've created the business idea yourself and you plan on launching your very own business. For this approach you will need to know several things:
30% of the Total Cost to start your business will need to come from your personal cash reserves. Your Business Plan will need to be strong because you'll have to convince the bank that even though your idea hasn't been proven yet, you're research and numbers show your confidence that it will work. Keeping the loan amount under 0,000 increases your chances of approval. You'll need to make sure your Income/Expense projections are as reliable as possible. Be prepared to answer several difficult questions from the bank regarding your business concept.

Know that the approval process will be harder when you take this approach to starting your first business, but not impossible. You'll just need to be a lot more thorough than when using the other 2 approaches.

Franchises
If you plan on buying a Franchise for your first business, getting approved for a 7(a) loan is a little easier. This is because of the support you will receive from the Franchisor. The strongest Franchisors have 2-3 week training programs which go a long way towards helping you build credibility with a bank. In addition, the on-going support from the Franchisor is a great tool to help make your business successful. Here are several things you need to know:
30% of the Total Cost to start your Franchise will come from your pocket, just like a start-up. You'll still need a Business Plan, but a lot of the information you'll need will come from the Franchisor. The Franchisor can provide sales results from there franchisees which is very helpful to banks when making a lending decision. You can count the Franchise Fee as part of your cash injection into the business. Banks have pre-approved lists of Franchises they are willing to finance. Find out from the bank if your Franchise is on that list. If it's not, they may still approve a loan for you, but it can take a lot longer because they'll need to go through a special process to approve the Franchisor.

Those are the basics when looking at financing a franchise. Keep in mind the better quality the Franchise, the better the chances you have of getting approved.

Quick Tip: It can be a red flag if your Franchise is not approved by your bank or the bank tells you it is unwilling to finance the Franchise you have selected. 9 times out of 10 the bank has a good reason for not financing that particular Franchise which could include failed Franchises, or weak on-going support from the Franchisor.

Business Purchase
The final way you can use the SBA 7(a) loan is to buy your first business. This is a little easier than a start-up or a Franchise because the business will need to have been operating for more than 2 years and profitable for you to get a bank loan. A business that's been operating profitably has proven results which make banks very comfortable when loaning money to buy them. Again, key points you need to consider:
You will only need to come up with 20% of the Total Purchase Price in cash as opposed to 30% with the other 2 options. In almost all cases the bank will require you to pay for an independent valuation of the business. A bank usually will not lend more than 50% for the dollar amount beyond the value of the assets of the business (determined by the valuation), otherwise known as Goodwill (or Blue Sky Equity). The seller can finance a portion of the 20% cash injection you're required to come up with. You will need to obtain the last 3 years of business tax returns and financial statements from the seller.

That's a quick summary of how the SBA 7(a) Loan program can be used for 3 different approaches to starting your first business. If you would like to find out exactly what you need to do to get approved for a SBA 7(a) loan, please visit http://7asecret.com

Start-Up Financing - Get a SBA Loan for Start-Up, Franchise, or Business Purchase

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Bill Bartmann's Buying Bad Loans Seminar - Is it Worth Your Time and Money?

!: Bill Bartmann's Buying Bad Loans Seminar - Is it Worth Your Time and Money?

The Risk With Purchasing Bad Loans

When it comes to buying bad loans, you tend to be somewhat skeptical. If you're not careful and conservative when making the offers for these bad loans, you stand the risk of the loans being noncollectable. The recently launched Buying Bad Loans Seminar however may cure that scepticism. This is a seminar that has been set up by Bill Bartmann, a self-made billionaire who made his money from running a billion dollar debt collection business when the last bad economy hit, pioneering the debt buying industry in America.

Only For Big Investors

Most of us consider that we truly need to have a great deal of money in order to begin investing in this way. For some of us, we discount this as a means to make money. The reality is quite different. Boxes of loans, containing about 20 bad loans each, can be as little as 0.00. You are generally buying the loan for 5 cents on the dollar.

Quick Return On Investment

The reality is that Bill Bartmann's seminar offers all answers on how to set up and run a debt collection business successfully. It's a business model that gives you a means to make money from an investment that is generally a tenth of what you are able get back. With this kind of business you can expect profit back in 30-45 days. You won't collect on all the loans in the boxes that you buy, but the ones you do are sure to make up for the rest.

From Credit Cards To Car Loans

The Buying Bad Loans Seminar teaches you to sit down and identify the kinds of bad loans that you would most effectively be able to work with. Multiple kinds of bad loans will crop up, including credit cards, mortgages, and even car loans. You will also learn a lot about how to evaluate the loans, the bidding process and where to go to bid on the loans.

Get A Collection Agency Business To Do The Hard Work

Along the way, you will want to find good agencies to help you collect your purchased loans. It is a given that this is not something that you want to tackle on your own. It is also a given that you want to offer some measure of dignity to your customers and still recoup some of the money that they owe. Getting a collection agency business to do it for you is part of this process.

A Rinse And Repeat Process

Finding the best collection agency business isn't an easy task and you're going to need to do your homework to accomplish it but once it's been done the first time it's pretty much a rinse and repeat process. Generally collection agencies take about a third of the proceeds so getting one that is reputable but also successful is imperative.

Conclusion

For anyone who is seeking a way to make a reasonable return on their investment, Bill Bartmann's Buying Bad Loans Seminar is an outstanding investment. For just a small slice of your time and a nominal fee, you get some valuable insight into a whole new business for your consideration. While the seminar-- and the lessons it teaches--certainly aren't for everyone, the reality is that a debt collection business is a business that most people could be good at. It is also a business that could begin to help you financially in just a month or two.

Bill Bartmann's Buying Bad Loans Seminar - Is it Worth Your Time and Money?

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