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.
by Kenbry Capital | Feb 3, 2023 | Blog, Franchise Financing
If you’re looking to buy a franchise, you may be wondering how to finance such an endeavor. Investing in a franchise involves significant capital, and it’s essential to understand the different ways of financing your dream business. This blog post will discuss seven options for financing when buying a franchise.
1. SBA Loans: A Small Business Administration (SBA) loan is one of the most popular ways of financing a franchise purchase. These loans are typically backed by the federal government and offer competitive rates and long-term repayment plans, making them ideal for those who need more time to pay off their loan. However, SBA loans can be difficult to obtain due to their strict requirements and lengthy application process.
2. Home Equity Loans or Lines of Credit: For those who own a home, tapping into your available equity can effectively finance a franchise purchase. Home equity loans provide lump sum payments while lines of credit allow you to borrow only what you need when you need it, making them great options for those hoping to finance their franchise purchase quickly and easily.
3. Retirement Accounts: If you have an IRA or 401(k), you may be able to use these accounts as collateral for your franchise purchase without paying any taxes or penalties on the borrowed funds. This can be an excellent option for those with substantial retirement savings but also comes with certain risks, so make sure you speak with a financial advisor before taking this route.
4. Personal Loans: Personal loans are another viable option for financing a franchise purchase as they typically offer lower interest rates than other types of loans and don’t require any collateral or down payment. However, these loans usually have shorter terms than other financing types, meaning that borrowers must be prepared to pay off their loans quickly if they don’t want to accrue additional interest charges over time.
5. Crowdfunding: Some entrepreneurs have had success with crowdfunding platforms such as Kickstarter or Indiegogo when looking to finance their franchises – however this type of funding is often not enough on its own and should only be used in conjunction with other forms of financing to ensure that all costs associated with your business venture are covered adequately.
6. Grants: Depending on your location and the type of business that you’re looking to start, there may be grants available from government agencies or private organizations that can help cover some or all of the costs associated with starting up your business venture – so make sure you do some research before assuming that all financing has to come out-of-pocket!
7. Angel Investors/Venture Capitalists: Finally, if you’re looking for more serious funding then seeking out angel investors or venture capitalists might be something worth considering – however this route should only be taken after careful consideration as giving away equity in exchange for capital can significantly reduce the amount of control that you have over your business in the long run!
When buying a franchise, potential business owners must understand all their options when it comes to financing their dream business endeavor – from traditional lenders such as banks and SBA loans – through more innovative solutions like crowdfunding – there are plenty of ways that entrepreneurs can secure the necessary capital needed in order create successfully launch their successful venture! So take some time today to thoroughly research each option before deciding which is best suited for your unique situation! The professionals at Kenbry Capital can help you become successful through our franchise financing program.
by Kenbry Capital | Jan 27, 2023 | Franchise Financing
Investing in a franchise business is a great way to build wealth and gain financial freedom. With the right plan, you can start your own franchise business without needing a lot of capital upfront. The ROBs Plan is the perfect solution for entrepreneurs who want to get into franchising but don’t have the resources or know-how. Here’s what you need to know about starting a franchise with the ROBs Plan.
What Is the ROBs Plan?
The ROBs Plan stands for “Retain Ownership But Sell (ROBs)” and it is an innovative way of starting and managing a franchise business without having to invest large amounts of capital upfront. Instead, you will retain ownership of your company but sell off pieces of your business over time in order to generate revenue that can be used for reinvestment or expansion. This will allow you to grow your business without having to take on debt or other forms of financing.
How Does It Work?
The process begins with you selecting a suitable franchise model and securing legal advice from experienced lawyers and accountants in order to ensure that all paperwork is completed correctly. Once this is done, you will need to create detailed plans that outline how the franchise will operate, including marketing strategies, pricing structures, staff requirements, and more. Once these plans are set up, you can start selling parts of your business in exchange for equity or cash payments which will be used as investments in areas such as marketing, equipment purchases, or staff salaries. This process should be repeated regularly until you have reached your desired level of growth.
Advantages Of The ROBs Plan
The major advantage of using the ROBs Plan when starting a franchise is its flexibility; it allows entrepreneurs to start their own businesses without having to take on large amounts of debt or risk their personal assets if things don’t go according to plan. Additionally, as owners are able to keep control over their businesses throughout the entire process, they are able to make decisions regarding how they want their franchisees to run without having too much external influence from investors or lenders. Finally, by selling pieces of their businesses over time instead of taking out loans from banks or venture capitalists, entrepreneurs can minimize risk while still being able to grow their companies at an accelerated rate compared with traditional methods such as bootstrapping or angel investing.
Starting a new business can be intimidating but with the right plan, it doesn’t have to be complicated! The ROBs Plan offers entrepreneurs an innovative way of getting into franchising while minimizing risk and allowing them to retain full control over every aspect of their operations. If you’re looking for an easier way into franchising then give the ROBs Plan a try – it could help you realize your dreams faster than ever before! With careful planning and implementation on your part – there’s no telling how far your business could go!
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 | Jan 20, 2023 | Franchise Financing
Franchising is a great way to start a business. Not only can it provide you with the necessary guidance and resources to be successful, but it also offers security in knowing that you’re part of a larger, established company. But how do you fund your franchise? Read on to find out more about the different options available for financing your franchise.
Self-Funding
If you have sufficient funds, you may choose to self-fund your franchise. This option is great if you already have enough money saved up or can access capital from other sources such as investments, retirement accounts, family and friends, etc. However, self-funding does have its downsides including increased risk due to a lack of external support and a potential lack of liquidity.
Small Business Loans
Small business loans are one of the most popular ways to finance a franchise. These loans typically come from banks or other lending institutions and can be used for purchasing inventory, hiring employees, etc. Small business loans are usually offered at competitive rates and come with flexible repayment terms. However, they typically require collateral such as real estate or equipment and may take some time to process depending on the lender’s application requirements.
Franchise Financing
Franchise financing is another popular option for funding a franchise. Many franchisors offer financing programs that make it easier for new owners to purchase a franchise without having to come up with large amounts of capital. These programs often include low-interest rates and flexible repayment terms that make them attractive alternatives to traditional small business loans. Additionally, many franchisors will provide additional support services such as training programs and marketing assistance as part of their financing packages.
Starting your own business can be an exciting venture but also a daunting one if you don’t know where to begin when it comes to financing your new endeavor. The good news is there are several options available for funding your franchise including self-funding, small business loans, and franchise financing programs offered by many franchisors themselves. Whichever option you choose for funding your franchise will ultimately depend on your financial situation as well as the specific requirements set forth by the franchisor or lender involved in the process. With this guide in hand, however, you should now have all the information needed to decide how best to move forward with starting up your franchise!
The professionals at Kenbry Capital can help you become successful through our franchise financing program. Contact us today!
by Kenbry Capital | Jan 13, 2023 | Franchise Financing
Owning a business can be incredibly rewarding, but it can also be difficult to get the funding you need to get off the ground. Thankfully, there are various financing options available to franchise owners who want to open a business or expand their existing one. In this blog post, we’ll take a look at 5 of the best franchise financing options and how they can help you achieve your goals.
- SBA Loans – The Small Business Administration (SBA) offers loans up to $5 million that the government guarantees. These loans are typically used for startup costs, working capital, and equipment purchases. The credit requirements are fairly strict, but if you meet them you can enjoy lower interest rates than most other financing options.
- Merchant Cash Advances – Merchant cash advances provide businesses with quick access to funds in exchange for a percentage of future credit card sales. This is an ideal option for businesses that have high credit card usage and need short-term funding quickly.
- Equipment Financing – If you need money to purchase equipment for your franchise, equipment financing is a great option. It allows you to finance up to 100% of the equipment cost and spread out payments over time with low-interest rates.
- Bank Loans – Banks offer loans specifically designed for franchises which may include lower interest rates than other types of financing as well as more flexible repayment terms. However, bank loans typically require good credit and collateral so they may not be an option for everyone.
- Crowdfunding – Crowdfunding is becoming increasingly popular among entrepreneurs looking for startup capital without taking on debt or giving away equity in their businesses. You can use crowdfunding platforms like Kickstarter or Indiegogo to connect with potential investors who could provide the necessary funds in exchange for rewards or recognition from your business once it succeeds.
There are many different types of franchise financing available these days which makes it easier than ever before to start up a new business or grow an existing one Finding the right type of financing is key so make sure you do your research before deciding which route is right for you With so many options available its important that you find one that fits your needs and budget so that you can focus on running a successful franchise.
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 | Jan 6, 2023 | Franchise Financing
Starting a business is an exciting yet daunting prospect. You have to consider all the costs associated with launching and running a business, including franchise fees, equipment, supplies, wages, and more. Fortunately, there are many different financing options available to help you kickstart your franchise business. Let’s take a look at some of the best loan options available for franchising businesses.
SBA Loans
The Small Business Administration (SBA) offers loans specifically designed for small businesses including franchises. The SBA doesn’t actually lend money itself; instead they offer guarantee programs that make it easier for banks and other lenders to provide financing to small businesses. The most popular SBA loan program is the 7(a) loan which can be used for almost any purpose related to starting or expanding a business. This includes buying land or buildings, purchasing inventory and equipment, or even refinancing existing debt. The maximum amount you can borrow under this program is $5 million with repayment terms up to 25 years depending on how the money will be used and what type of collateral you can provide.
Franchise-Specific Loans
There are also several lenders that specialize in providing financing specifically for franchises. These loans are tailored to meet the needs of franchisees and come with features such as lower interest rates and longer repayment terms than traditional bank loans. Additionally, these lenders may offer additional support services such as marketing advice or assistance in finding qualified employees for your franchise location.
Equipment Financing
If you need funding to purchase equipment for your franchise business, then equipment financing may be an option worth considering. With this type of loan, you can borrow money from a lender to purchase specific items such as machinery or computers necessary for running your business without having to pay in full upfront costs out of pocket. Depending on the lender you choose, repayment terms may range from 6 months up to 5 years with interest rates ranging from 8% – 30%.
Unsecured Business Loan
Unsecured business loans are another great option if you need funding quickly but don’t have any form of collateral such as property or inventory that you can use as security against a loan. Unsecured loans usually come with higher interest rates than secured loans but they are much easier (and faster) to obtain because there is no need for extensive paperwork or lengthy approval processes associated with collateral arrangements. Repayment terms range from 3-7 years depending on the lender and amount borrowed.
Franchising businesses have unique needs when compared to traditional startup companies so it is important that you find a loan option that meets those needs while still being affordable and easy to manage over time. Fortunately, there are many different types of loans available specifically designed for franchises as well as other more general financing options that may be suitable for your needs. By doing research into each one and understanding their advantages and disadvantages before applying for a loan, you can ensure that you choose the best option possible for funding your franchise business dreams!
