Commercial Loan Programs And SBA Loans Are Considered

Before retirement, I ran a franchise company, and sometimes our franchisees need to take a loan to buy equipment and pay a franchise fee. However, when someone told me that they wanted to receive the Small Business Administration loan, I had to think about selling the franchise, because I was worried it might take too long to get them approved and get funded, so that they could, their equipment, and finally start your own business. You see as with any franchise, I was mad dash to put in so many departments across the country as possible in the shortest possible time.

Consequently, I much rather sell a franchise to someone who can pay cash or have your financing already available. So the question you can ask the Small Business Administration loans are always so long to process? No, not really, in fact they can not take any more than most commercial loans, which often is a myth, and I have to admit that I too once thought that. Speaking about SBA loans, and for their mysticism, they are not as complicated as you think.

In fact, last month I read a very interesting article the Wall Street Journal "published on May 16, 2011, which was named" The debunking of SBA Loan Myths, "Marshall Eckbald. He commented on the four common myths;

1 .- The SBA only lends Cases
2 .- Lendors face no risk
3 .- It takes forever to get SBA loans
4 .- get buried in the documentation is trying to get SBA loans

And now, I would like to tell you my experience with the Small Business Administration loans to franchisees, rather than focusing on the Wall Street Journal article that was written for different types of audiences. On the first point of disagreement I would say that the author is correct that the statement is wrong, because I know people who were financially qualified for a loan almost everywhere, but when they went to their local business bank, the bank controlled by the direction of the Small Business Administration loan, because it made sense of their situation.

And now, it does not always make sense in all situations, because all the financial wherewithal, and the portfolio is different. The second point is not true, or because the government guarantees the highest part of the SBA loan, they can not guarantee that all. In addition, if the local bank has a lot of SBA loans go bad, they get taken off the list. The item number three, as I already mentioned, it generally does not take any longer to get the SBA loan.

And the fourth point I would say that the SBA loan is relatively simple and does not seem to be any more of the documents requested, or participate in, or any other type of commercial loan business, or existing business that is expanding. At least that was my comment . And now, there are many reasons why you would not want to receive the Small Business Administration loans, for example, if you are buying or selling a piece of property, or you do not want in fact a property tied up for long periods of time.

And I think for many people this is their biggest concern. And so I hope you please consider all this, go find and read the Wall Street Journal article, and think about what I said today. If you have any comments or questions may be some concern about whether a case study of their interaction with the small Business Administration loan, please shoot me an email. Your information may help someone in a future article.

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Author (andrewmathew). Submitted on Thu, 30 Jun 2011 Time: 11:12 AM

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