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Learning More About Savings

Hello, I’m Miranda West. I would like to use this site to help others build an adequate savings account. Most people do not have enough money in their savings accounts to cover emergency repairs or other expenses that unexpectedly arise. Without a savings account, you may be at the mercy of your employer, which can have a negative effect on upward mobility. I will cover popular savings techniques you can use to start building your nest egg. I will also talk about ways to reduce spending so you can dedicate more to your savings. Thank you for coming to my website.


Learning More About Savings

Need A Space For Your Small Business? 2 Questions To Consider About Construction Loans

by Ralph Ford

If you have your own small business and want to expand, you may be looking at property and wanting to build a brick-and-mortar store. To get this vision in motion, you'll need to take out a commercial construction loan to cover the costs of the project.  

However, before you can start building, you'll need to assess whether this is a viable option. Commercial real estate loans are riskier than home mortgages, so you may be required to pay a larger down payment. Here are two questions to consider during this process:

How Do You Set Yourself Up to Qualify for a Loan?

Again, because commercial construction loans are riskier, you may not be able to negotiate them like you would on a residential loan. However, there are ways you can set yourself up so that you qualify for loans within your means.

One way to qualify for a loan is to build locally or move to the community you plan on developing. Local banks may think a borrower is riskier if he or she doesn't live close by, and therefore, may understand the different markets and needs of local consumers.

Another way to qualify for a good loan is to solidify your business plan. A business's revenue can be unpredictable—especially when a company is just starting out. But if you can effectively document how the business will be profitable and how the construction will be paid off, you'll be in a better position for a loan. Banks usually want to see earnings projections for a couple of years compared to contractor's estimates and your own personal/business documents.

Lastly, you can set yourself up to qualify for a loan with collateral and good credit. For example, if you own some property, have the land appraised and use it as collateral for the loan. Since lenders were hit hard after the Great Recession, many of them will want collateral.

Do You Have Options if You Don't Qualify for a Loan?

The answer is yes! If you don't qualify for a loan from a single lender, you may want to look into a consortium loan. A consortium refers to several banks—or other lending organizations—that will work together to give a loan to a single borrower. Since the loan will be divided up amongst several groups, each lender has a reduced risk.

Another option you may want to look into is leasing. While larger corporations have internal property management teams that construct buildings to their specifications, smaller businesses can struggle in this area. With a lease, you may not have to worry about building just yet; you'd just rent space on a property that's already been developed.

Once your business gets a footing, and once your company outgrows its space, then you can look into construction loans once more. Contact a company like LCNB National Bank for more information and assistance.