MCAs are extremely efficient, as they can provide easy and hassle-free access to funding.
Also, keep in mind that this kind of business funding is not a loan. Rather, it’s a lump sum advance that you get in exchange for a specific percentage of your future receivables.
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The SBA allows small business owners to borrow money for a wide range of financial needs.
These include, but are not limited to:
While having access to capital is always ideal, not every investor has access to enough for the project they’re looking to do.
That doesn’t mean you can’t still make the deal happen.
Just takes some creativity and some know-how!
So we’re going to give a quick breakdown of each. From there, definitely dive into them more by doing your research on contracts, different strategies, etc.
Strategy #1: Seller Financing:
To bypass the tedious banks and traditional loans, you can opt for seller financing.
When you use seller financing, the seller agrees to let you pay the purchase price over time in monthly installments.
The seller also benefits by bypassing underwriters, loan requirements, and other red tape.
Strategy #2: Private Loan From a Self-Directed IRA:
IRAs can be used to invest in alternative assets, including real estate.
By locating an IRA lender, you can create a win-win arrangement: they receive a solid return, and you get tap into the funds needed.
Strategy #3: Lease With Option to Buy:
In this situation, you would lease from a landlord that may need some help maintaining and managing their property or a seller who doesn’t want to sell right away.
For example, the landlord would continue paying the taxes, insurance, and major expenses—while the renter would handle turnover costs and basic repairs.
In exchange, the renter’s lease would have the right to sublease the other units for an added source of income.
Many times, you can acquire property with this strategy with no down payment of your own.
Strategy #4: Master Lease + Option (With a Credit Partner):
Say, for example, you find a great rental property—but you don’t have enough cash to float it yourself.
You find someone who has cash for ¼ of the down payment, but they also have excellent credit.
Along with your credit partner, you would have additional leverage to secure the loan.
Conclusion
Like I said in the beginning, ideally you want access to as much capital for your real estate deals as possible because it makes things MUCH easier.
However, if for whatever reason you don’t have access to capital (which you should be now if you’ve booked your Real Estate Funding Strategy Call!), these are some good creative strategies for still getting your deals done.
If you need a term sheet and pre-approval letter for an active deal that needs funding, please fill out our Real Estate Funding Form. It takes less than 5 minutes to complete with no credit pull.
Watch this video from our President, Kris de Leon, as he provides tips on how you can improve your credit.
In this video, I’m going to provide you with three tips that will help you boost your credit score. So a credit score of anywhere from a 720and up is considered a very good score among the eyes of the lenders. So that’s definitely a range you want to aim for.
If you find your score either in the low 500s, in the 600s or even in the low 700s and you want to find those quick, simple things that you can do with your credit to increase it and push you over the 720 range, which will open up a lot of doors for you with a number of different credit opportunities such as lower interest rates and high having a higher approval for a loan or a credit card, the first tip that I want to recommend is to take a look at your credit report.
So if you haven’t done so already, you want to go to a site called annualcreditreport.com and print out a free copy of your credit report from each of the three major credit bureaus. And basically you’re going to want to look at all of the information in the credit report to make sure that all of the information that’s reflected in that report is accurate.
If you need help with boosting your credit, please fill out the following form to receive a free credit consultation from our partner ASAP Credit Repair.
Whether you’re a startup or established business, building business credit is important because there may come a time when you need to apply for a loan. Without a good credit score, getting a loan at favorable rates and terms may be difficult. At some point, you’ll need access to capital to expand your business, hire more staff, purchase inventory or equipment, and cover any unexpected expenses.
Business credit in a nutshell is the ability of companies to get financing. There are three major business credit bureaus – Dun & Bradstreet, Experian, and Equifax. Please note that Experian and Equifax have business divisions that are separate from personal credit.
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If you want to grow your eCommerce or Amazon business, you’ll need to have access to capital. Whether you need to buy inventory, manage cash flow, invest in profitable advertising campaigns, or cover payroll to keep your valuable employees, having capital enables you to grow your business quickly.
Before looking for funding, you’ll need to consider the following factors:
If you are clear on the answers to the above 3 questions, here are 10 popular funding options for your eCommerce business.
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Never use your personal credit card when making business purchases. One advantage is that many business credit card issues don’t report to the personal credit bureaus so this can actually keep your credit score intact.
For example, there may be times when you’ll need to max out your credit card to purchase inventory or equipment, or ramp up your advertising during your peak season. If you do this on your personal credit card, the card issuer will report this to the major credit bureaus. This will tank your credit score because of your high credit utilization.
However, if you make the same purchase on a business credit card that doesn’t report to the personal credit bureaus, you’ll keep your credit score safe.
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What is a business line of credit, and how do you get one? What is the difference between a secured and unsecured line of credit? The article below will answer these questions. It’s also important to assess whether you need the line of credit and how it can grow your business.
A business line of credit can function like a business loan. However, the main difference is you can draw from the line of credit up to your maximum limit and have the funds deposited directly into your business checking account. You don’t have to use the entire credit limit, so you only use what you need.
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