by Kenbry Capital | Apr 21, 2023 | Blog
If you’re a business owner, you know how difficult it can be to secure the financing needed to complete large projects. It’s not easy to find money when you need it, especially when there are so many options out there. Fortunately, there are options available for businesses of all sizes that can help secure the funds they need for their projects. Let’s take a look at some of these options.
Investment Loans for Businesses
Investment loans are among the most popular methods of financing big projects. Investment loans allow businesses to borrow money from investors and use it towards their projects while paying back the loan with interest over time. This type of loan is typically used by start-ups and small businesses that need funds quickly and don’t have access to traditional bank loans or other forms of financing.
JV Equity or Debt Programs
Another option for securing financing for large projects is through joint venture (JV) equity or debt programs. JV equity programs involve two or more parties investing in a project together and sharing the profits as well as any losses associated with the project. JV debt programs work similarly but involve borrowing money from investors instead of investing in the project together. Both types of programs can be beneficial for businesses that need access to additional capital but don’t want to take on too much risk or burden themselves with long-term debt obligations.
Angel Investing
Finally, angel investing is another option that businesses may consider when looking for funding for large projects. Angel investors are individuals who provide capital investments into start-up companies in exchange for an ownership stake in the company. Angel investors often provide necessary funding at critical times that can help a business get off the ground and succeed in its endeavors. It’s important to note, however, that angel investors usually only invest in companies they believe in and have confidence in their success so they may not be interested in every business proposal they receive.
Securing financing for large projects isn’t always easy but there are plenty of options available that can help make it easier. Investment loans, JV equity/debt programs, and angel investing are just ways businesses can acquire the funds they need for their big plans and make them a reality! With careful research and analysis, any business owner can determine which method best suits their needs – ultimately leading them down a successful path towards completing their project goals!
At Kenbry Capital, we have a great reputation for helping our customers get the business loans they need as quickly as possible. We offer flexible loans that adapt to your company’s circumstances and are easy to qualify for. We’re friendly and knowledgeable, showing you the best commercial finance options for reaching your goals. With the right loan, your business can grow in amazing ways.
by Kenbry Capital | Apr 14, 2023 | Blog
If you’re interested in buying an existing business or franchise, you may be wondering how to get an SBA loan. The Small Business Administration (SBA) is the go-to source for business loans, especially when it comes to franchises. But how do you qualify? And what do you need to know before applying? Let’s take a closer look at the process of getting an SBA loan for a franchise.
Types of SBA Loans
The Small Business Administration offers several types of loans that are specifically designed for small businesses and franchises. These include the 7(a) Loan Program, the 504 Loan Program, and the Microloan Program. Each program offers different terms depending on your financial needs and credit score.
Qualifying for an SBA Loan
To qualify for an SBA loan, you must meet certain criteria. You must have good credit and have been in business for at least two years (or in some cases three). Additionally, you must have a solid business plan including market research so lenders can see your potential growth over time. Finally, you should have strong management experience as well as sufficient collateral to secure the loan if necessary.
How To Apply For An SBA Loan
If you believe you meet all the abovementioned qualifications, it’s time to start applying! The first step is to fill out an application with the Small Business Administration (SBA). This application will ask questions about your business plan and goals as well as any collateral that you may be able to offer up in exchange for the loan. Once your application has been submitted and approved by the SBA, then it’s time to apply with a bank or other lender that is approved by the SBA. This is where things can get complicated; banks don’t always make it easy to secure a loan even if your business meets all their requirements. So, make sure to do your research beforehand!
Applying for an SBA loan can be a long and complicated process but ultimately rewarding if done right. With patience and due diligence, those looking into buying an existing business or franchise can use this type of loan to jumpstart their venture without having too much financial strain upfront. Before beginning this process though, make sure that you understand all of the requirements associated with getting an SBA loan so that there are no surprises down the line!
by Kenbry Capital | Apr 7, 2023 | Blog
Managing cash flow and working capital can be a challenge for any business, no matter the size. But there are financing options available that can help. In this blog post, we’ll explore three types of financing solutions to help you manage your working capital needs.
Line of Credit
A line of credit is a loan in which the lender agrees not to demand repayment until the borrower has used up all or part of the total amount. While lines of credit offer flexibility and convenience, it’s important to remember that they are still loans, so interest will accrue over time and must be paid back in full when repayment is due.
Invoice Financing
Invoice financing is another option for businesses looking to manage their working capital needs. Invoice financing allows businesses to borrow against unpaid invoices from customers. The amount borrowed is typically a percentage of the total value of the invoice, with interest accruing on that amount until it’s paid off in full. This type of financing offers businesses quick access to cash without having to wait on customers to pay their invoices.
Merchant Cash Advances
Merchant cash advances provide businesses with an advance on future sales revenue, usually in exchange for a percentage fee based on what’s borrowed. Merchant cash advances are often more flexible than other forms of financing because they don’t require collateral or a personal guarantee from the borrower. However, their high-interest rates and fees can also be more expensive.
Financial challenges come with running any business—but with these three potential financing solutions, you have options available if you’re looking for ways to manage your working capital needs. Remember that each option comes with its pros and cons, so it’s essential to do your research before deciding which one makes sense for your business’s particular needs. With careful consideration and analysis, you’ll be well-equipped to determine how best to finance your business’s working capital needs.
by Kenbry Capital | Mar 31, 2023 | Blog
The short-term rental market is booming and for good reason. People are increasingly choosing the convenience and flexibility of renting an apartment or house for a few days rather than committing to a long-term lease. As a business owner, you can take advantage of this trend by investing in a short-term rental property. This guide will provide an overview of the key considerations when investing in a short-term rental investment.
Location Matters
The first step when investing in a short-term rental is to select an ideal location. Location matters for two reasons. First, it affects how likely your property is to attract renters. Second, it influences your potential profit margins since local regulations vary from city to city. For example, if you’re looking at properties in San Francisco, you’ll need to be aware of their strict regulations regarding short-term rentals before making any decisions.
Research Demand
Once you’ve identified the right location for your investment, it’s time to research the demand for short-term rentals in that area. You should look at both current and historical trends when researching demand – what’s popular now may not be as popular down the line! Additionally, look into seasonal trends; certain areas might see more need during certain times of the year due to events or attractions, which could affect occupancy rates and profits.
Understand Your Expenses
It’s also important to understand all the expenses associated with owning a short-term rental property to accurately calculate your expected return on investment (ROI). Property taxes and maintenance costs are two primary factors that will impact your ROI and profitability; however, there may be additional costs such as insurance premiums depending on where you invest and what type of property you purchase. To get an accurate picture of your expected ROI, make sure that all associated expenses are considered when calculating projected profits from renting out your property.
Investing in a short-term rental can be a lucrative way for business owners to capitalize on changing consumer preferences while also diversifying their portfolios with real estate investments. To ensure success, it’s important to carefully select the right location based on local regulations and research demand trends before diving into any investment opportunities. Additionally, consider all associated costs including taxes, maintenance fees, insurance premiums—and more—so that you can accurately calculate expected returns before making any decisions about investing in a short-term rental property!
Let’s work toward finding you the right commercial finance solution for your growing business. Get in touch with a member of our team, who will schedule a time to meet so we can learn more about your goals and the specifics of your financing request. Together, we’ll come up with a financing solution that helps your business.
by Kenbry Capital | Mar 24, 2023 | Blog
Business owners have a variety of financing options available to them, and one of the most popular is mezzanine financing. In this blog post, we’ll take an in-depth look at what mezzanine financing is, how it works, and what its benefits are so that you can make an informed decision about whether it’s right for your business.
What Is Mezzanine Financing?
Mezzanine financing is a form of debt capital used by businesses to finance expansion projects or cover other capital expenditures. It can be used to purchase real estate, fund acquisitions, refinance existing debt, and more. The loan is typically secured by the company’s assets and generally carries a higher interest rate than traditional bank loans. It also has an equity component that gives the lender a stake in the company if certain conditions are not met.
Rate of Return on Mezzanine Financing
The rate of return on mezzanine financing varies depending on the type of loan and other factors such as the creditworthiness of the borrower and the amount borrowed. However, lenders expect to receive 10% – 15% returns. This makes mezzanine financing an attractive option for investors looking for higher returns than those available through traditional bank loans.
Benefits of Mezzanine Financing
Mezzanine financing offers numerous benefits to businesses seeking funds for expansion projects or other capital expenditures. The primary benefit is that it allows businesses to access funds quickly without going through lengthy and expensive processes associated with traditional bank loans. Additionally, mezzanine financing enables businesses to leverage their existing assets instead of selling them to raise capital. Lastly, it also provides investors with a higher return on their investment than they would receive with a traditional bank loan.
In conclusion, mezzanine financing is an attractive option for businesses looking for quick access to capital without using up their assets or going through lengthy approval processes associated with traditional bank loans. It also gives investors higher returns than they would receive from traditional bank loans while still maintaining some control over the business they are investing in. If you’re considering taking out mezzanine funding for your business, you must understand all aspects before making a final decision so that you can make sure it’s right for your unique situation.
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.
