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Where are you getting your loans or capital funding from, investors or banks? Which do you think is best?

Where are you getting your loans or capital funding from, investors or banks? Which do you think is best?

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Answers (3)
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Empire Business Brokers
Douglas County, CO

It's tough right now across the board. I'm a broker, but I also work with a company called Borrow-Best. We offer a securities based line of credit with rates starting as low as 1.6%. We can lend up to 90% against stocks, mutual funds, treasuries etc. Fund in 7-10 days with credit lines up to 10 million. We can only lend against liquid securities though.

Sep 22, 2011
Abby Shemesh
Amerinote Xchange, LLC
Loan Acquisition Director | Loan Portfolio Manager
San Mateo County, CA

In this economy it is a little bit of both depending on the down payment and the credit worthiness of the buyer/borrower. The fact of the matter is that the majority of lenders and banks are simply not funding small business borrowers, due to the current uncertainty in our economic landscape.

In my opinion, seller financing is the smart way to go nowadays, especially if you opt to sell the business note to a note buyer, after it ha been originated. The key to bring this type of transaction to fruition is making sure that you structure the business note correctly prior to off-loading it to a buyer (usually at a discount, which is highly predicated on the loan, collateral and borrower characteristics). It would also be suggested to deal with a direct note buyer as opposed to a note broker (which could be a difference in savings of thousands of dollars in broker fees).

Sep 22, 2011
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The BAF Group LLC
MD

It's a complex question, with no brief answer. It depends on the general industry, the specific business to be financed, the creditworthiness of the borrower, the borrower's experience, the amount he has to put down... Lots of variables. Sometimes, the good ol' SBA is best. Banks are the worst, any way you cut it, unless it is a pure property deal - and then it is sometimes still very tough. Private investment is more and more a key element. Seller financing is often the ONLY way, with some businesses. And the trends seem to change, on a monthly basis. Many times, it is a combination of sources.

Take your pick.

Sep 22, 2011

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