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Tips for Getting a Business Loan

Starting any business can be expensive, as the business owner has to invest money in equipment and services before he or she can approach customers. While some people use their funds for starting their business, in many cases they require money from other sources for their business.

In some cases, they may approach their relatives and friends for a loan for starting their business, while in other cases, the business owners may approach a bank or other lender for a business loan so that they have the necessary funds required for day to day operation of the business.

Loans for a New Business

Since there is a risk of a default for any loan, most lenders will ask for collateral while giving the business loan, especially if the business is new and does not have any relationship with the bank or lender.

The lender will also ask for details of the business, the business plan, revenues, profits to check if the business is able to repay the loan. As the risk of lending to business is higher compared to personal loans, as many businesses shut down, the interest rate for a business loan will usually higher compared to other loans, especially loans to salaried people.

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Loans for Business Growth

Though some lenders will give loans to new businesses, a majority of the business loans for any lender are for established businesses. There are many businesses, where a large amount of money has to be invested for purchasing manufacturing equipment, raw materials or stock for trading.

The business owners may not have sufficient money in their bank account to purchase the asset or stock, so they will often approach their bank or another lender to get a suitable loan so that they can make the necessary purchases and pay for the expenses required to keep their business running or help it grow.

Loan Terms and Conditions

It is usually easier for a business owner to get a loan approved from the bank where he has an account, especially if the business is doing well. The terms and conditions for business loans, including interest rate, duration of the loan, repayment terms and other factors, will depend to some extent on how creditworthy the business is, whether the lender believes that the business will repay the loan on time.

If the business is unable to repay the loan, or there is a delay in the repayment of the loan, it can be very expensive for the lender, as they have to write off the loan amount, reducing the profit of the lender.

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Calculating Loan Amount and Repayment

Before applying for a loan, the business should plan in detail how they intend to use the loan amount and also how they are planning to repay the loan amount within a specified period. As the interest rate charged for the loan will usually be higher than other loans, it is important to estimate the amount required as loan accurately, and a larger loan could adversely affect the profitability of a business.

The business should also be able to accurately estimate the revenues and profits in future so that it is able to repay the loan in time, making a provision for unfavorable business conditions. To get the best deal for the loan, the owner should check the loan offers from multiple lenders before taking a decision.

First American Equipment Finance

First American Equipment Finance (2)

First American Equipment Finance is a company in the finance industry that is fully owned by City National Bank.

This is one of the US largest banks that has over 30 billion in assets only.

It was named among the top one hundred commercial leasing finance companies.

Its headquarters is in Fairport, New York.

  • Mission and goals

The mission of this company is to make their business grow in a in a professional and a passionate way.

They have always strived to meet the needs of their clients and ensure they are fully satisfied.

They have done this by maintaining long term relationships with other existing banking institutions and customers.

  • Company size

The company has grown over the decades in wealth creation and number of employees.

They currently have over 175 employees who work in different departments.

The employees are dedicated professionals who take pride in bringing new ideas to the developing industry.

They still hire top students from different universities and offer them professional training and responsibilities. The company still has prospects and room for further growth.

  • History

This company was founded in 1994 as a subsidiary of city national bank.

Their idea was simply to finance the biggest businesses in the US that are credit worthy.

They have since built a legacy as an organized and performing institution that has given credit even to the most sophisticated borrowers.

This has made them to grow and become successful every year.

  • Services and client base

Their services have entailed financing businesses in various sectors such as healthcare, legal, insurance, media, food and beverage.

Many of their clients have acknowledged their services and termed them to beyond expectations. They have also strived to build a long lasting rapport with their clients.

This has made them to grow their client base over the years in all the 50 states.

  • Financial StabilityFirst American Equipment Finance (1)

This company has enjoyed financial stability even in the most turbulent economic times.

Whether the economy is contracting or unstable First American’s have been consistent in their lending. This has been associated with well laid down strategies and transparency in their operation.

This is one of the factors that has helped build trust in their clients and created dependability.

First American Equipment Finance Company pioneered the use Rapid Turnaround Process a simplified paperwork package that is used for leasing, billing and asset management.

They have also taken part in many community development projects and won several awards including best for millennial and best in New York

The Secret to Success for Some Women in Finance

Finance is one of the most demanding careers today.

Success in the finance industry means that one has to invest a lot of time and hard work.

Sometimes one has to stay late in the office so as to beat tight deadlines. This is even more challenging for women in this industry who try to balance between family and work.

The secret to success for some women in finance has been associated to sharing responsibilities with their spouses.

Here are some of the tips for women who want to be successful in the finance industry.

The Secret to Success for Some Women in Finance (1)

  • Work smart

Every career has its own unique challenges.

However, we can always learn something from all the different professionals in different departments.

Always be a team player, learn to share responsibilities with your colleagues. Be kind to coworkers and those who are around you.

If you are collaborative in your career and share ideas freely with your colleagues then you increase the chances of being successful.

  • Be proactive and look out for opportunities

The Secret to Success for Some Women in Finance (3)Being aggressive is not only meant for men.

Many women who have been successful have talked about how they sort for these opportunities and had to undergo competitive process so as to achieve.

Being hard working does not guarantee anyone a successful career.

One has to be on the lookout for any window of opportunity.

Favorable circumstances make the best recipe for success, this means that one has to eliminate any form of obstacle that is on the way of success.

  • There is no perfect time to make a move

There is never a perfect time to make a move in career advancement.

There will always be obstacles that will pull you down and undermine your efforts.

Success comes with the will power and determination to move forward. One has to be a risk taker and be willing to take the next step even when the circumstances are unfavorable.

For women, balancing family responsibilities and career can be challenging. However, this should not be the set back that holds you from the next move.

Always remember there is no perfect time for the next move.

  • Keep the right company

The right mindset is crucial for success.The Secret to Success for Some Women in Finance (2)

The secret to success for some women in finance has been associated with surrounding themselves with other women who have succeeded in different areas of their career.

Keeping such a company is good for motivation and encouragement.

Nobody has ever made it by themselves.

Everyone needs a mentor in order to grow.