Business Finance - Real Estate Investment Property Mortgage Loan

Business Finance - Real Estate Investment Property Mortgage Loan
One of the most difficult business finance transitions
occurs when a residential real estate investor begins an
investment approach that includes commercial real estate
and business opportunity investing. It is important to
formulate a detailed commercial mortgage and business loan
strategy prior to buying a business.

There are approximately 25 critical differences between
residential real estate investing and commercial property
investing. Because more residential property investors are
exploring commercial real estate and business finance
opportunities, this business opportunity financing and
business loan report is designed to help educate new
commercial investors about key commercial mortgage and
commercial loan issues.

Rather than specifically focusing on issues that
differentiate business financing from residential financing
(which we have thoroughly analyzed in separate reports),
this report will offer a few key observations regarding
business finance elements that are often overlooked in new
business investment considerations. These factors include
credit card processing, business cash advance options and
working capital management.

Coordinating Credit Card Processing and Business Cash
Advance Programs -

Many business investments will involve the use of credit
card processing decisions. These business activities should
be analyzed simultaneously with business cash advance
programs for several reasons. If done properly, a business
should reduce their costs and improve their cash flow.

Reducing Credit Card Processing Costs in Business Investing
-

One of the biggest benefits of coordinating credit card
processing with a business cash advance program is the real
potential that overall costs can be reduced. This is due to
the fact that the most advanced merchant cash advance
services will be linked with the lowest cost credit card
processing providers. Many of the best credit card
processors will not be available for businesses other than
through a high-quality credit card financing arrangement.

Improve Cash Flow for Business Investments -

Credit card factoring strategies can produce a business
cash advance up to several hundred thousand dollars. For
most businesses, this level of financing is not routinely
available via other business finance programs. Many
commercial lenders have eliminated line of credit services,
so the use of credit card receivables to obtain a merchant
cash advance fills an important business financing void.

Business cash advance programs do come with some potential
problems and limitations. It also seems that many business
owners are confused by this kind of business finance
strategy, and in many cases new business owners rule out
the use of a merchant cash advance before they have
thoroughly analyzed the pros and cons. Even though credit
card financing is usually thought of as short-term business
financing, it can be effectively used on a longer-term
basis when done properly.

Working Capital Management Strategies -

Obtaining a working capital loan is usually more effective
when arranged in conjunction with buying a business.
However many lenders do not adequately address this issue
in the early business finance stages. This issue should be
discussed as early as possible so that business financing
options are clearly understood before finalizing efforts to
buy a business.

After acquiring a business, it is more likely that business
or personal collateral will be a necessity in getting
working capital financing. One major exception to this
common collateral requirement will be the use of a business
cash advance and credit card factoring as mentioned above.

Additional Key Investment Business Finance and Real Estate
Mortgage Issues -

As previously noted, commercial mortgage and commercial
loan requirements are very different from residential
financing requirements in the United States. Additional
business finance reports include a discussion of many other
significant financing factors. Separate report topics
include SBA loan refinancing, business opportunity
financing, stated income business loans and commercial
appraisals.

Several of these reports and articles are relevant to
factors addressed in this article and will serve as
effective business financing resources to provide
strategies and solutions for many other problematic
business loan circumstances as well. For example, some SBA
loan processes can include working capital as part of the
total initial financing. For those interested in learning
more about both potential advantages and problems
associated with coordinating credit card processing and
business cash advance services, there are several
additional resources which will facilitate a better
understanding of these complex business finance issues.

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Stephen Bush and AEX Commercial Financing Group provide
business finance - SBA loan help and AEX Credit Card
Processing - Commercial Real Estate Investment Property
Financing Reports:
http://www.credit-card-processing-solutions.com

What exactly do you get in a free credit report ?

What exactly do you get in a free credit report ?
In this article we will discuss the misconception of free
credit reports. There are lots of advertisements out there
saying get your free credit report. But what exactly does a
free credit report come with? I have personally seen about
3 different types of credit reports being advertised out
there.

The first type of credit report is the credit report where
you only get a credit report from one of the bureaus. There
are 3 bureaus, and they are Equifax, Trans Union, and
Experian. Typically the offer includes a report only from
one of these bureaus. You might ask yourself how does this
help me, and the answer is it does not help very much. The
reason is since there are 3 bureaus, and they all report
somewhat different information; you might want to get a
credit report from all three bureaus. This is called a
tri-merge, or a 3-1 credit report. In other words you get
one report with all three bureaus and what they are
currently reporting about you in regards to loans
outstanding with your creditors.

The second type of credit report is the 3-1 credit report
with credit score. This is somewhat better; you get all
three bureaus reporting your information along with only
one of the agencies giving a score. Well you might ask
yourself again, what is the advantage and disadvantages of
this type of credit report? Since there are 3 bureaus
reporting your credit, it would only make sense to get all
3 scores since that is what most lenders look at. Mortgage
companies pull your 3-1 credit report with all three scores
and typically use the middle score for qualifying purposes.
If this is the industry standard in the qualifying process,
shouldn't you see the same report? I would have to say yes.

The third type of credit report is the 3-1 credit report
with all 3 scores. This is the best type of credit report,
because it is what lenders look at. Most people out there
getting a free copy of there credit reports are not really
sure what they are getting. Annualcreditreport.com
advertises that you are entitled to a free copy of your
credit report once a year, but fail to mention you don't
get your scores. It is in your best interest to get your
credit report with all 3 bureaus and all 3 scores,
especially since this is what most creditors look at in the
determining process for lending you money.

Here is the break down for credit scores and how they are
classified for mortgage:

• 780-850 - Low Risk
• 740-780 - Medium -Low Risk
• 690-740- Medium Risk
• 620-690- Medium High Risk
• 620 and Below - High Risk or "Sub-Prime."

With all of this being said, it obviously makes more sense
to get your 3-1 credit report with all 3 credit scores.
Especially since that is what creditors are looking at.
When pulling a consumer credit report it does not affect
your credit scores.

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In this article we discuss the misconceptions of free
credit report offers, and what you really get. In order to
get your credit report with all 3 bureaus and all 3 scores,
go to http://www.my720fico.com