by Kenbry Capital | May 26, 2023 | Blog
If you’re looking to start a business or expand an existing one, then you may have heard of SBA franchise loans and wondered what they are. These loans offer the potential for low-cost access to capital that can help get your startup off the ground or support growth.
What is an SBA Franchise Loan?
SBA franchise loans are a type of financing offered by the Small Business Administration (SBA) to help entrepreneurs start or expand their businesses. The SBA works with lenders to provide these low-cost loans that have longer repayment terms and lower interest rates than traditional bank loans. These loans can be used for a variety of purposes, including purchasing a franchise, buying real estate, purchasing equipment or inventory, and even working capital.
Qualifying For an SBA Franchise Loan
To qualify for an SBA franchise loan, you must meet certain criteria. You’ll need to have a good credit score and a strong business plan. Additionally, you may need to provide collateral such as your home or other personal assets to secure the loan. The amount of money you’re eligible for may also depend on the size and type of your business.
Compare Terms and Rates
When it comes time to apply for an SBA franchise loan, it’s important to do your research and compare offers from different lenders to find the best deal. Make sure you understand all the terms and conditions of the loan before signing anything, as it’s a legally binding agreement. Additionally, you should make sure to read the fine print when it comes to fees associated with the.
If you think an SBA franchise loan could be right for your business venture, contact the experts at Kenbry Capital today. We offer franchise financing for everything from acquisitions to working capital, equipment, and more.
by Kenbry Capital | May 19, 2023 | Blog
Flipping houses has become a lucrative business for many aspiring entrepreneurs. By purchasing and renovating properties, then selling them at a profit, it’s possible to build wealth quickly and gain financial freedom in the process. If you’re new to flipping houses, however, getting started can be intimidating – but it doesn’t have to be! With the right knowledge and resources, anyone can learn how to flip houses with minimal risk and maximize their potential profits.
Research the Local Real Estate Market
First, you need to understand the local real estate market. Researching the type of housing in your area, median home prices, and trends in demand will give you an idea of where to find properties that have the most profit potential. A great place to start is by looking at bank-owned homes or foreclosures – these can often be purchased for a discounted price and can provide an easy way to get started in house flipping.
Secure Funding
Next, you’ll need to find reliable financing for your project. Most banks are wary of financing flippers due to the risky nature of the business, but there are still options available. Look for hard money lenders who specialize in providing financing for fix-and-flip projects. Make sure to shop around and negotiate the best terms possible – this will give you the financial support that you need to get started.
Renovations
Finally, it’s time to start renovating! This is where your creativity comes in – make sure to create a design plan before beginning any renovations, and use quality materials to ensure that the property is ready for sale. Hiring a professional contractor or team of tradespeople is also recommended – not only will this help speed up the process, but it can also save time and money in the long run.
Flipping houses can be a daunting endeavor, but with these tips, you’ll be on your way to becoming a successful house flipper. Keep learning, stay organized, and don’t be afraid to take risks – you’ll soon reap the rewards of your hard work. Contact Kenbry Capital today to get the capital you need for your next fix and flip project.
by Kenbry Capital | May 12, 2023 | Blog
Small business owners have the option to choose from a variety of loan options to fund their business venture. One popular choice is an SBA loan or Small Business Administration loan. There are two types of SBA loans: 7(a) and 504 loans. Business owners need to understand the differences between these two loans so they can make an informed decision about which one is right for their business needs.
SBA 7(a) Loan Overview
An SBA 7(a) loan provides businesses up to $5 million in capital and requires collateral and a personal guarantee from the borrower, but no down payment is necessary. This type of loan has flexible terms and can be used for almost any purpose, including purchasing real estate or equipment, refinancing existing debt, or funding other operational expenses. The interest rate on this loan may be fixed or variable depending on the length of the repayment period, which can range from five to 25 years. This type of loan requires some paperwork and can take some time to get approved, so plan accordingly if you need quick capital.
SBA 504 Loan Overview
An SBA 504 loan offers up to $5 million with no collateral required or personal guarantee from the borrower (even though it does require a down payment). This type of loan is typically used for long-term investments such as real estate or equipment purchases that will help your business grow over time. The interest rate on this loan is fixed with repayment periods ranging from 10-20 years depending on how long you need it. A bonus with this type of loan is that it generally takes less time than a 7(a) loan to get approved since there’s less paperwork involved.
Business owners should consider both types of SBA loans when deciding which one best suits their needs. While both offer up to $5 million in the capital, the differences in terms and requirements make them more suitable for different scenarios – such as short-term vs long-term investments – so be sure to research each option before committing your funds! Ultimately, understanding the pros and cons of each type of SBA loan will help you make an informed decision about which one is right for your business situation.
by Kenbry Capital | May 5, 2023 | Blog
If you’re a small business owner, you know that having access to capital is essential for the success of your business. For many entrepreneurs, Small Business Administration (SBA) loans are a great option for financing their businesses. But which SBA loan program is right for you? Let’s take a look at two of the most popular options: the SBA 7(a) and 504 loan programs.
SBA 7(a) Loan Program
The SBA 7(a) loan program is designed to provide small businesses with access to long-term, low-interest-rate financing. This type of loan can be used for almost any type of business purpose including working capital, equipment purchases, debt refinancing, and more. The maximum amount that can be borrowed through an SBA 7(a) loan is $5 million and repayment terms can range from 10 to 25 years depending on the amount borrowed and the purpose of the loan.
SBA 504 Loan Program
The SBA 504 loan program provides long-term fixed-rate financing for major assets such as real estate or equipment. This type of loan can also be used to finance some types of construction projects. Unlike the 7(a) loan program, the maximum amount that can be borrowed through a 504 loan is $20 million and repayment terms are usually 20 years or less depending on the purpose of the loan.
Both types of loans offer attractive terms and interest rates but have some key differences that should be considered when choosing between them. The 7(a) is better suited for shorter-term financing needs while the 504 is best used for long-term asset purchases such as real estate or heavy machinery. Additionally, since the maximum amount allowed under an SBA 504 is much higher than under a 7(a), it may be more appropriate for larger projects or expansions that require larger amounts of capital than what a 7(a) would allow.
When it comes to accessing capital for your business, both an SBA 7(a) and 504 Loan can be great options depending on your situation and needs. Do your research so you can choose which one makes more sense in your specific case. It’s essential to understand how each works so you can make sure you get exactly what you need to grow your business successfully! Knowing all your options will help ensure that you make an informed decision about which type of funding will work best for your unique situation in the future!
by Kenbry Capital | Apr 28, 2023 | Blog
When business owners are looking for extra capital to finance their operations, they often turn to a line of credit as a source of funds. But what is the difference between secured and unsecured lines of credit? Understanding the differences between these two types of financing can help business owners make informed decisions about which type of line of credit is best for them.
The Basics of Credit Lines
A line of credit is an agreement with a lender that allows you to borrow money up to a certain limit, pay it back over time, and then borrow again if needed. It’s like having your loaner—as long as you continue making payments on time, the money will always be available for use whenever you need it. It’s important to remember that even though a line of credit may be available when needed, only borrow what you can afford to pay back promptly.
Secured vs Unsecured Lines of Credit
The main difference between secured and unsecured lines of credit lies in the collateral required by each type. A secured line of credit requires some form of collateral—usually property or assets owned by the borrower—to secure the loan agreement. If the borrower defaults on their payments, the lender can seize this collateral as repayment for the debt owed. An unsecured line of credit does not require any collateral; instead, lenders rely on the borrower’s past financial history and potential future earnings as assurance that they will repay their debt.
Benefits and Drawbacks
Secured lines of credit have lower interest rates than unsecured lines because they are less risky for lenders; however, borrowers must be willing to risk using their property or assets as collateral. Unsecured lines typically have higher interest rates but do not require any collateral from borrowers; however, lenders are taking more risks when offering these loans so approval can be difficult for those with poor or limited financial histories. Both options come with advantages and disadvantages that should be carefully weighed before deciding which type is best suited for your business needs.
Deciding between secured and unsecured lines of credit depends largely on your unique situation and individual needs as a business owner. Knowing how each type works and understanding its benefits and drawbacks can help you decide which option is best suited for your business’s current financial situation—allowing you access to capital while protecting yourself from unnecessary risk or high-interest rates in the future. With careful consideration, business owners should have no problem finding an appropriate solution that meets their needs while staying within budget.
Work with the financing professionals at Kenbry Capital to find a loan for your business. Our professionals can help tailor a solution that will allow you to continue to meet your business needs with minimal disruption. We have a large portfolio of business loans for all your needs.
