September 28, 2013

Err to Elude While Investing in Commercial Property

Off lately if investment in commercial property is on your minds, give a second thought whether you are really prepared for it or not. Investments, be it in residential or commercial property, is a wise step. It requires careful attention on each and every minutest detail involved during purchase of the property. Therefore the investor needs to be highly cautious while undertaking any deal. This article highlights important tips to be followed before investing in to commercial property.

Who doesn't like expanding its business? Unquestionably expansion of business involves acquisition of property space but where are you investing is a big question to contemplate, because success and failure of your profession to a great extent rest on the property site chosen. So if you are investing in the commercial property follow the tips below and escape from realty blunders:-

Location - The location of the property chosen is the biggest factor to consider. Primarily identify the kind of business you have. If your business involves day to day interaction with clients you need to find a location which has a professional ambiance with pristine environment with several other amenities integrated. On the contrary if you are setting up a manufacturing base you need to find a location which is probably in the outskirts so that the waste materials released does not cause any harm to human bodies in the vicinity.

Budget - Are you planning to take up a retail space on rent or willing to purchase a property is another important aspect to consider. The decision directly affects your budgets, therefore one need to be highly cautious. Don’t fall for a deal immediately when you see a property; always consider taking a glance at various other properties and draw requisite cost details or the rental value attached. Once the details are finalized, make necessary financial arrangements. Talk to the money lenders and financial institutions. Discuss the interest rates and the EMI’s.

Moreover there are plenty of documents to be filed, make sure that you have a copy of all. Talk to the lenders regarding all nitty-gritty.

Crime Rate - If you are purchasing a commercial property for establishing your jewelry retail or if have any other such business, be careful and affirm that the area you chose to invest in is not prone to criminal activities. Get the accurate information by visiting the cops of the area.

Return on Investment - How does the property tends to grow over the years, what are the returns expected 5 years down the line and what are the benefits associated? Investor needs to consider all these aspects carefully. Check for the appreciation rate, and see that you are not investing in a property which has a depreciating record.

Age of the Property - If you are planning to purchase a newly constructed property, see that you get what you expect. Many property dealers show refurbished properties and claim them to be newly constructed. You need to be alert and watchful to identify the age of the property. Talk to the people in the vicinity, you can always take a help of your expert friend and seek necessary suggestions.

Subhadra Bhadauria is an ardent writer with leading real estate site 99acres.com. She is a regular blogger and relishes writing. With her career in mass communication and reporting she gained experience in education and real estate industry and consistently shares her views on the changing scenarios.

Investors usually commit mistakes while capitalizing in properties. Therefore the writer probes to reflect common errs and highlights important tips to avoid blunders while investing in commercial property in Mumbai.
Continue reading..

September 17, 2013

Top 5 Small Business Financing Options

Small business financing usually refers to the means by which an entrepreneur obtains money for starting a new business, buying a small business or bringing money to an existing business for financing business activities. There are a number of resources from where a small business can get financing. Here are top five small business financing options. Have a look at them:

Bank Loan

This is the first financing option that most of the business owners look forward to. Here the lender approval is based on businesses credit rating and history, kind of business, assets the business owns and age of the company. So, if you want to take a loan, as an entrepreneur you will be asked to place an asset as a security for your a bank loan. The lender does this in order to seize its asset and sell it for covering the loan’s cost if in any case the company defaults on repayment.

Lease Financing

Many businesses choose to lease equipment rather than buying it. Equipment like computers, cars and machinery can be leased for a short or long period. When leased for a short period, it’s called operating lease. At the end of this kind of the lease term, the equipment is returned to the finance company. When leased for a long period, it’s called capital lease. This kind of leasing is a sort of funding a buy. The firm financing the equipment is looked at as having bought the equipment outright. Leasing requires a much lower down payment than that of buying an equipment straight away or taking a loan. Leasing equipment is even fully-deductible, lessening the tax burden of businesses.

Supplier Credit

This is an easy way for small businesses to get financing. Many suppliers offer businesses with an average of 7-180 days to pay for products that they have got from them. If the business requires a bigger credit line, the creditor with as well as extends the repayment terms. Businesses usually choose to go for this option because they think it to be an easier option than getting a loan.

SBA Loans

The Small Business Administration offers a number of loan programs to the small businesses in the United States. However, the SBA doesn’t lend money directly to the small businesses. It provides an assurance to the lender that the business borrowing the money will repay it, allowing the lending institution to lend the money. SBA EWCP, SBA Export Express Program and SBA International Trade Loan Program are some of the lending programs of the SBA that can help you with financing your small business exports. Small and disadvantaged businesses that have obtained 8a certification can choose to go for one of these programs and improve the business.

Merchant Cash Advance

The businesses that have a minimum of five thousand dollars in monthly credit card sales are eligible to get a loan up to $250K with a merchant cash advance. Loan repayment is made using monthly credit card sales of the business until it’s repaid fully.
Continue reading..