by Kenbry Capital | Jun 30, 2023 | Blog
Securing a business loan can be an essential part of starting and running a successful enterprise. But when your application for a business loan is denied, it can leave you feeling frustrated and confused. Knowing why your loan was denied in the first place can help you identify what needs to change before applying again so that you have better luck next time.
Low Credit Ratings
Poor credit is one of the primary reasons that banks deny business loan applications. Potential lenders will closely examine your credit history, paying special attention to any instances of late payments or defaults on previous loans. If you have a low credit score, it’s unlikely that you’ll be able to secure financing from a lending institution. Before applying for a loan, consider working to improve your credit score so that you can have the best chance of being approved.
Insufficient Collateral
Another common reason that banks deny small business loans is insufficient collateral. Collateral is essentially anything of value that lenders can use as security if the borrower defaults on their loan payments. If you don’t have enough assets to put up as collateral, you may find it difficult to get approved for a loan.
A Thin Business Plan
Finally, weak business plans can also contribute to loan denial. If your plan lacks detail or doesn’t have enough evidence of potential success, lenders will be hesitant to approve your request for funds. Be sure to prepare an in-depth business plan before submitting your loan application, and make sure that it includes realistic projections of success.
Knowing why your business loan was denied can help you identify areas in need of improvement before applying for funding again. Take the time to review your credit score, consider what assets you can use as collateral, and create an effective business plan so that you have the best chance of getting approved for a business loan.
Talk to the experts at Kenbry Capital. We offer a wide range of accessible business financing solutions that do not depend on high credit ratings, collateral, or other factors.
by Kenbry Capital | Jun 23, 2023 | Blog
If you are a medical practitioner looking for financing to open or expand your practice, medical practice loans may be the perfect solution. A medical practice loan is an effective way to fund the purchase of equipment, hire additional staff, and cover other expenses associated with starting or expanding a healthcare business.
Debt-to-Income Ratio
When it comes to applying for a medical practice loan, there are several factors that you need to take into consideration. Your credit score is one of the most important elements to consider when applying. Most lenders require applicants to have a good or excellent credit score to be approved. Additionally, the debt-to-income ratio is also important. This is the ratio of total monthly debt payments to gross income. Most lenders have a maximum debt-to-income ratio that you should aim for when applying for a loan.
Documentation
Aside from credit score and debt-to-income, you will also need to provide documents that verify your personal information and business financials. This includes proof of income, bank statements, and tax returns. The more information you provide to the lender, the better your chances of being approved for a loan.
Compare Terms and Rates
The best way to make sure that you get the most competitive rate on your medical practice loan is by shopping around and comparing rates from different lenders. There are several online platforms where you can compare loan options and find the best deal. Additionally, you should reach out to local banks or credit unions in your area for more information on their lending products.
Finally, it’s important to make sure that you read all of the fine print before signing any loan paperwork. This includes understanding all of the fees and repayment terms associated with the loan. Once you understand all of the terms and are sure that it is a good fit for your business, you can move forward with submitting your application. Contact Kenbry Capital today to get accessible financing solutions for your medical practice.
by Kenbry Capital | Jun 16, 2023 | Blog
Are you in the market for a commercial truck loan? If so, then you need to understand exactly what this type of financing is and how it works. A commercial truck loan is a type of loan that allows individuals or businesses to purchase trucks for business use. This could include purchasing delivery vehicles for goods transport, construction trucks, dump trucks, flatbeds, and more. Commercial truck loans are available from banks and other financial institutions as well as specialized lenders who specialize in this type of financing.
Qualifying for Commercial Truck Loans
When applying for a commercial truck loan, you will need to meet certain eligibility requirements. These could include having a good credit score and financial history, as well as demonstrating enough income or assets to support the loan payments. The lender will also likely require some form of collateral such as an existing vehicle or real estate property to secure the loan. Additionally, you will need to provide proof of insurance for the truck and tax documentation such as a sales tax receipt or registration form.
Fees and Interest Rates
The cost associated with commercial truck loans can vary depending on the type of truck you purchase and your creditworthiness. Generally, lenders will charge an interest rate based on market conditions as well as other fees or charges. It is important to research different lenders and compare rates and fees to make sure you get the best deal.
Getting Approved for a Truck Loan
To increase your chances of getting approved for a loan, it may be helpful to take steps such as improving your credit score or building up other assets that can be used as collateral. Additionally, having a solid business plan and a clear idea of how you will use the truck can help convince lenders that you are a responsible borrower.
With the right planning and preparation, getting approved for a commercial truck loan can be relatively simple. Contact Kenbry Capital today to get the financing and equipment you need for your trucking business.
by Kenbry Capital | Jun 9, 2023 | Blog
Invoice factoring is a type of financing that allows businesses to get money for their unpaid invoices quickly and without taking on debt. It’s an attractive option for small business owners who are looking for ways to increase cash flow, but don’t want the hassle or cost associated with traditional loans.
The Invoice Factoring Process
Invoice factoring is a process in which a company, known as the “factor”, purchases unpaid invoices from another business at a discount. The factor then takes on the responsibility of collecting payment from the customer on behalf of the original business. Once the invoice has been paid and collected, the factor will return any remaining funds to the original business, less a fee for their services.
Fast Access to Funds
The main benefit of invoice factoring is that it allows businesses to access cash quickly and easily. Since most factors offer quick turnaround times, businesses can get the money they need within days or even hours, rather than waiting weeks or months for customers to pay their invoices. This can be incredibly helpful for businesses that need to make payroll, purchase new equipment, or cover other expenses.
No Debt
Another advantage of invoice factoring is that it’s a form of financing that does not require the business to take on debt. Instead, the factor buys the unpaid invoices at a discount and assumes responsibility for collecting payment. This allows businesses to get the cash they need without having to worry about making monthly payments or dealing with lenders.
Ultimately, invoice factoring can be an excellent option for businesses looking to access cash quickly and without taking on debt. If you want to improve your cash flow and get fast access to funds within 24 hours without placing debt on the balance sheet, contact Kenbry Capital today to start factoring your invoices.
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.
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.
