Benefits of a Small Business Loan | Huntington Coast Capital, Inc.

Benefits of a Small Business Loan | Huntington Coast Capital, Inc.

 

Business Loans

 

Perhaps a friend or colleague has advised you to take out a loan for your small business, but you’re still in doubt. After all, you may not want to burden your business with debt. However, the following reasons may convince you to consider a small business loan.

 

1. Enjoy Flexibility

Loans for small businesses have varying terms and repayment periods that can suit your business needs. You can go for a long-term loan with an extended repayment duration or a short-term loan that has to be repaid after a short time. Your choice will depend on whether the loan is for personal, business, or mixed-use. In some cases, you can even apply for many types of loans.

 

2. Liability-Free

Generally, business borrowers do not need to have collateral or a specific revenue to apply for a loan. The lack of requirements is an advantage to a small business that just started and has limited income or no assets to put up as collateral. Hence, aspiring business owners can easily enter the corporate world quickly and get their businesses running.

 

3. Retain Full Ownership

When you get financing from investors or partnerships, you must relinquish a portion of the business. Although the arrangement may be helpful initially, problems may arise as the company expands. You have to consult partners on significant decisions and how the business operates, but a loan allows you to keep full ownership of your business.

 

4. Improve Business Credit

If you repay the loan on time, you will boost your business’s credit score. A good credit score makes it easier to get more loans at favorable terms in the future. For example, companies with good credit scores tend to get lower interest rates for their loans and can easily avoid accrued interest.

 

5. Access Funds Quickly 

Business expansion requires significant capital to hire new employees and operate the business. You can choose to wait for business profits to increase before reinvesting them. However, if you have projects that should start soon, you may take out a loan. The loan allows you to buy new equipment and finance new product development before your competitors do it first.

 

6. Take Advantage of Low-Interest Rates

Lenders often provide low-interest rates on business loans to get customers. As competition in the lending business becomes stiffer, business borrowers can negotiate for the best deals. Also, business loans are likely to come with lower interest rates than any personal loan. 

 

7. Nurture Relationships With a Specific Lender

When you nurture relationships with your lender, you increase your chances of getting a loan in the future. The lender will have worked with you and knows how you handle money. The next time you go to get a loan, you can always refer back to the previous loan that you repaid on time.

 

8. Overcome Liquidity Problems

Businesses require working capital to operate effectively. However, small businesses often face challenges that make it difficult to meet utilities and payroll requirements. Since these challenging times are temporary, the business can get through the hard times with the help of a small business loan.

 

9. Refinance Debt

If your business already has a loan, the mounting debt may interfere with your ability to pay bills and sustain business operations. A small business loan can help refinance your debt and give you time to pay off any loans. The new loan may have a lower monthly payment and interest rates.

 

10. Reduce Tax Payments

Sometimes, your tax obligations may be lower if you take out a small business loan. For example, you can claim deductibles on the interest you pay on loans. The best approach is to consult a tax expert to know how taking a loan can impact your taxes.

Taking a loan for your small business is easy if you use the right lender. Huntington Coast Capital provides lending solutions for small and medium businesses that need quick cash. Contact us for more information. 

Fix and Flip Loans For Real Estate!

Fix and Flip Loans For Real Estate!

November 2022 Email Blast
Huntington Coast Capital continues to broaden its product offering! This time, in the area of real estate. We are pleased to introduce our nationwide fix and flip loans and bailout programs. Here are the details: Geographic areas: 
  • Major metro areas across the country, including Hawaii

Loan details: 

  • 12-18 month short terms notes
  • Interest rate range from 9.875% to 11.875%
  • No minimum FICO score
  • Cash out options up to 65% LTV on 1st and 2nd Trust Deeds
  • Purchases up to 75% LTV

Fix and Flip loans: 

  • Rehab loans up to 80% of LTC (or 75% of purchase) and no greater than 70-75% of the ARV

Property Types: 

  • 1-4 unit residential, multifamily bridge
  • $1M to $5M commercial: multifamily, mid-sized retail centers, industrial and office properties
  • Ineligible categories include: auto shops, Cannabis related real estate, assisted living, hotels, motels and specialty purpose properties (i.e. restaurants, churches, schools, bowling alleys, movie theatres and night clubs).
  • Land loans are on a case-by-case basis. The borrower would need to have adequate outside collateral and the land would need to be fully permitted with a solid development plan and take-out financing.

Bailout Loans: 

  • Non-owner-occupied and owner-occupied consumer loan bailouts (owner-occupied in California only)
  • Forebearance and foreclosure fix loans. The lender will purchase the home up to 70% LTV and provide 6-18 months to payback (refinace) the loan. A 20% premium is also charged on this product (i.e. $1M purchase $1.2M buyback).

About Huntington Coast Capital. Huntington Coast Capital secures funding for companies in a broad base of industries. Our clients come to us to find a more flexible lending partner to meet their growth needs. Many are declined by the bank and are in need of a more creative and entrepreneurial funding solution. We consult on a wide range of funding options for business owners throughout the United States in the following areas:

  • Supply chain financing 
  • Equipment loans and lease programs (learn more about our equipment loan platform offered through our subsidiary)
  • Lines of credit for working capital needs
  • Term loans for marketing, hiring staff and general expansion needs
  • Factoring services for accounts receivable financing that also provides for back office credit and collection functions
  • Purchase order financing
  • Asset based loans
  • Business acquisition financing
  • Inventory financing
  • Private commercial real estate bridge loans
  • SBA loans for business and real estate needs

Whether you are a startup or established, in need of $100,000 or $10,000,000 we have the capital partners to meet your needs. Contact us to see how we can assist in taking your business to the next level. To your success!

HCC Contact Us Toll Free Number
Patrick Zazueta Huntington Coast Capital, Inc.Direct: 714-719-8966patrick@huntingtoncoastcapital.comwww.huntingtoncoastcapital.com  BRE License #: 02090967