Credit card report Laredo

"The first thing we want to know is, 'credit card report Laredo How much cash do you have? Any outside income coming in?' " says Rick Anderson, general manager of Franchise Finance of Little credit card report Laredo Rock, Ark., a company that originates loans and leases for the franchise industry.

Anderson says if credit card report Laredo borrowers have substantial cash, "we'd recommend they put more money into the deal -- maybe 40% to 50%, and we'd finance it conventionally." If they aren't flush, he says, they still may have to contribute at least 20% along with collateral -- perhaps just enough from a retirement account to cover the down payment to qualify credit card report Laredo for an SBA loan.

Brian Colburn, managing director of franchise finance at Butler Capital Corp., a commercial lender in Hunt Valley, Md., says that the "only bank loans I see being made to new franchisees are if a person has established other relationships with a banker, or has previous experience, or is a local figure in the marketplace. new free credit report The average Joe, 99% of the time the bank will turn him over to an SBA" office. Indeed, with banks becoming credit card report Laredo more tight-fisted, the SBA is becoming the place more would-be franchisees are turning to. "It's what the SBA was created for, to provide access to capital for small businesses who can't get it through conventional means," says Christine Reilly, head of small-business lending at CIT Group Inc., a New York-based finance company. Reilly, CIT has recently "made credit card report Laredo some changes" to its underwriting criteria for franchising in order to reduce its risk exposure. The standard SBA loan for franchisees is known as the 7(a), which is issued by a bank or other qualified lender, and partly guaranteed against default by the government. get credit report online free Because of that backing, such loans are seen as relatively low-risk.

SBA loans include those for short-term working capital and equipment, which often have a five- to six-year maturity; and real-estate loans, which can credit card report Laredo run for 20 years or more.

Despite the current tight-money situation, "we expect to have adequate funding to meet demand for fiscal 'credit card report Laredo 09," says James Hammersley, director of the agency's loan-programs division. About 10% of all SBA loans go to franchisees, with credit card report Laredo the size running between $250,credit card report Laredo 000 and $500,000, although the maximum is $2 million.

Most of that money is earmarked for franchise entry fees, improvements or working capital.

Even so, the program is feeling a bit of the crunch. Hammersley says about 300 of some 4,000 bank participants around the country credit card report Laredo have reduced their SBA lending activity.

He also suspects that many bankers still in it are asking for more collateral. credit bureau check Borrowers must be creditworthy, typically contribute some equity, and are expected to repay the SBA loan out of the franchise's cash flow. "You need to have your own blood, sweat and tears in the business," Mr. While credit card report Laredo the actual rate is negotiated between the bank and the borrower, it's subject to SBA maximums, which are tied to the prime rate. While a low rate may be attractive initially, if borrowers can't generate enough business to cover their payments, "they could be in a bit of a bind," says Mr.