by Kenbry Capital | Mar 17, 2023 | Blog
If you’re thinking about investing in rental property, you may be wondering if a short-term rental is a good investment. The answer is yes! Here are 8 reasons why you should consider investing in a short-term rental in 2023:
- There is a growing demand for short-term rentals: The rise of the sharing economy has increased the demand for short-term rentals. More and more people are choosing to rent apartments, houses, and rooms on Airbnb and other platforms.
- You can charge more for a short-term than a long-term rental: Because there is such high demand for short-term rentals, you can charge significantly more per night than you could for a long-term rental. This means you can make much more money with a shorter investment time frame.
- A short-term rental is a flexible investment: If you need to move or travel, finding someone to sublet your apartment or house for a few months is much easier than finding someone to commit to an entire year lease. This flexibility makes it an ideal investment for people who may not want the traditional long-term commitment of owning property.
- You can use your short-term rental as a vacation home: While you’re not using your property as a short-term rental, you can still enjoy it as a vacation home! This way, you’re getting the best of both worlds – the income from renting out your property and the enjoyment of using it yourself when you please.
- A short-term rental can generate income all year round: Unlike traditional long-term rentals which may sit vacant during slower periods, such as summer or winter, short-term rentals can generate revenue all year round. This consistent cash flow makes them an appealing investment option.
- You can take advantage of tax breaks with a short-term rental: When you own and rent out the property, you may be eligible for certain tax deductions. These deductions can help offset the costs of maintaining your property, making it more affordable.
- A short-term rental is easier to furnish and decorate than a long-term rental: Because guests are only staying for a shorter amount of time, you don’t need to worry about furnishing and to decorate your property to such a high standard. This makes it less expensive and time-consuming to get your property ready for renters.
- You have more control over who rents your property with a short-term rental: When listing your property on Airbnb or another platform, you can screen potential guests before they book. This allows you to choose renters who will care for your property and be treated respectfully during their stay.
Short-term rentals are becoming increasingly popular among travelers and offer many benefits for investors. If you’re thinking about investing in rental property, consider making a short-term rental in 2023! Thanks For reading!
by Kenbry Capital | Mar 10, 2023 | Blog
Cash flow and working capital are critical components of any business. To stay afloat and remain profitable, companies need to manage their cash flow effectively. But it can be difficult for small businesses in particular to come up with the necessary funds for everything from day-to-day operations to long-term investments. Thankfully, several financing solutions are available that can help your business manage its cash flow and working capital.
Invoice Factoring
Invoice factoring is a form of asset-based lending that enables businesses to sell their unpaid invoices at a discount in exchange for immediate payment. It’s ideal for businesses that are waiting a long time for their customers to pay them, as it allows them to access the funds they need right away without having to wait. The amount you receive will depend on the amount of your invoice and its terms (e.g., due date), but generally speaking, most invoice factoring companies will offer around 80% of the total invoice amount upfront. The remaining 20% is withheld until the customer pays in full or until other agreed-upon conditions have been met.
Business Line Of Credit
A business line of credit is a loan product offered by banks or alternative lenders that provides businesses with access to working capital when needed. A line of credit works like a credit card – you can draw from it as needed up to an approved limit – but it usually has lower interest rates than other forms of borrowing and more flexible repayment terms. It’s ideal for businesses that need quick access to cash but don’t want to take out a large loan or commit to regular payments over an extended period.
Merchant Cash Advance
A merchant cash advance is another financing option explicitly designed for small businesses that need an influx of cash quickly. With this type of loan, you receive a lump sum from the lender in exchange for a portion of your future sales revenue or credit card transactions (usually between 10% and 60%). This means that instead of making regular payments on a fixed schedule, you repay the loan through automatic deductions from your daily sales or credit card transactions over an agreed-upon repayment period (usually 6 months). Merchant cash advances are perfect for businesses with unpredictable income streams since they allow you to adjust your repayment amounts depending on how much money you make each month.
Invoice factoring, business lines of credit, and merchant cash advances all provide invaluable assistance when it comes to managing your cash flow and working capital. Each one offers different benefits depending on your individual needs, so research before deciding which one best suits your business’s specific needs and goals. With these three financing solutions at your disposal, managing cash flow and working capital doesn’t have to be such a daunting task!
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.
by Kenbry Capital | Feb 24, 2023 | Blog, Franchise Financing
Owning a franchise is a great opportunity for aspiring business owners, but financing it can be intimidating. Finding the right financing option is key to getting your business off the ground and setting yourself up for long-term success. Here are seven ways to finance your franchise.
Small Business Administration (SBA) Loans
The Small Business Administration (SBA) offers several loan programs designed to help new businesses get off the ground. One of these is the SBA 7(a) Loan Program, which offers long-term, low-interest financing options for businesses in all industries. This program also provides access to capital, so you can use it to cover start-up costs, working capital expenses, and other related costs associated with buying a franchise.
Crowdfunding
Crowdfunding is an increasingly popular way to finance a franchise. Several crowdfunding platforms, such as Kickstarter and Indiegogo, allow you to raise funds from individual investors or backers who believe in your project. Crowdfunding campaigns typically last between 30 and 60 days and they’re perfect for franchises that don’t require large amounts of capital upfront.
Personal Loans
Personal loans are another option if you’re looking for quick financing with minimal paperwork involved. Most personal loans come with fixed rates and repayment terms ranging from one year to five years depending on the lender. This type of loan is ideal if you have good credit and a steady income because it allows you to borrow money without putting up any collateral or assets as security against the loan amount.
Retirement Account Financing
If you have retirement savings in an IRA or 401(k), you may be able to use those funds as collateral when applying for a loan from a bank or credit union. Some lenders will even let you use your retirement account as collateral without having to liquidate it first, allowing you full access to your funds while still being able to pay back the loan over time with interest payments deducted directly from your retirement account each month until the full balance has been paid off. This type of financing could be an attractive option if you need quick cash but don’t want to tap into other sources of funding such as credit cards or home equity lines of credit (HELOCs).
Financing a franchise can seem overwhelming, but plenty of options are available if you know where to look. From SBA loans and personal loans to crowdfunding and retirement account financing – there are many ways that business owners can fund their franchises successfully without having to put too much strain on their finances or deplete their savings accounts to get started. With careful research and planning, finding the right financing solution should be simple enough so that you can focus on what matters – running your business!
There are numerous benefits to opening a franchise business, such as having an existing marketing team and brand recognition. However, there are still financial hurdles to making your dream of operating a franchise restaurant or store a reality. The professionals at Kenbry Capital can help you become successful through our franchise financing program.
by Kenbry Capital | Feb 17, 2023 | Blog, Franchise Financing
Are you a business owner interested in franchising? If so, then you should consider applying for a Small Business Administration (SBA) loan. An SBA loan is an attractive option for those who want to open a franchise because the loan can be used to cover the costs associated with starting or expanding a business. In this blog post, we’ll take a closer look at how to apply for an SBA loan and what you should consider before submitting your application.
Eligibility Requirements
In order to qualify for an SBA loan, you must meet certain eligibility requirements. These may include having good credit, having sufficient collateral, and having adequate cash flow. Additionally, your business must comply with the size standards established by SBA guidelines. The size standards vary from industry to industry and are based on the number of employees or average annual receipts of the business.
Application Process
Once you’ve determined that your business meets all of the eligibility requirements, it’s time to start preparing your application packet. To apply for an SBA loan, you will need to provide information about your business plan and current financial situation as well as personal financial statements and tax returns from yourself and any other owners of the business. It is important that you provide complete and accurate information in order to increase your chances of being approved for the loan.
Making Your Pitch
When applying for an SBA loan, it is important to make sure that your application stands out from other applicants. Consider putting together a presentation that outlines why your franchise is unique and why it has the potential for success. Make sure that you emphasize how investing in this franchise will benefit both you and the lender in terms of profits and job creation.
Applying for an SBA Loan can be a great way to finance a new or existing franchise business venture due to its low-interest rates and long repayment period options compared to traditional loans or investors. However, it is important that you understand all of the eligibility requirements as well as prepare a thorough application package including all necessary documents before submitting it to ensure that you have increased your chances of getting approved by lenders or investors who might find value in what your franchise offers them in return for their investment. Doing these things will help ensure that when taking out an SBA Loan, both parties involved are confident that there is mutual benefit involved when agreeing on terms with each other.
Let the team at Kenbry Capital assist your company with tailored financing solutions. Contact us today.
by Kenbry Capital | Feb 10, 2023 | Blog
Are you looking to purchase commercial real estate for your business? The Small Business Administration (SBA) offers a loan program designed specifically for small businesses that need to finance the purchase of the commercial real estate. This loan program is known as the SBA 504 loan. In this post, we’ll explore how the SBA 504 loan works, what types of property qualify, and how you can get started with the application process.
How Does an SBA 504 Loan Work?
The SBA 504 program is designed to help small businesses obtain long-term financing for the purchase of commercial real estate and major fixed assets such as machinery and equipment. It consists of two loans: one from a private lender and one from a Certified Development Company (CDC). The private lender provides 50% or more of the total project cost, while the CDC provides up to 40%. The borrower must provide 10% or more as a down payment.
What Types of Property Qualify?
The property purchased with an SBA 504 loan must be used primarily by your business; it cannot be an investment property. Eligible properties include owner-occupied buildings such as retail stores, warehouses, manufacturing plants, office buildings, medical facilities, and even some green energy projects. The property must also meet certain size requirements; for example, it must be no larger than $15 million in total project costs or 2,000 sq ft in size if used as rental housing.
How Do I Qualify?
To qualify for an SBA 504 loan, you must meet specific eligibility requirements. First and foremost, you must be a small business with fewer than 500 employees that meets specific size standards established by the Small Business Administration (SBA). You must also demonstrate that you have the sufficient cash flow to repay the loan and show evidence that you have made a reasonable down payment on the property. Additionally, since this is a government-backed program other strict criteria need to be met such as management experience and financial statements.
An SBA 504 loan can provide businesses with access to long-term financing to purchase commercial real estate and major fixed assets such as machinery and equipment. While several eligibility requirements need to be met before applying for an SBA 504 loan including having fewer than 500 employees, having sufficient cash flow to repay the loan, making a reasonable down payment on the property, etc., qualifying businesses may be able to benefit from this government-backed loan program’s low-interest rates and extended repayment terms. If you’re interested in learning more about how an SBA 504 loan could help your business grow through commercial real estate purchases contact us today! We’ll help guide you through each step of the process so that you can make informed decisions about your future investments in commercial real estate!
We provide a large range of loans and leasing programs, from SBA loans and franchise financing to merchant cash advance funding and commercial real estate loans. Let the team at Kenbry Capital assist your company with tailored financing solutions. Contact us today.
