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Have you recently been thinking about investing in real estate? Many people have considered making money by becoming real estate investors. Luckily, there are a few good reasons that may encourage you to begin investing.

New Developments

In some parts of the country, new houses are being built much faster than in other areas. There is more demand than there is a supply of houses, and this makes the market more favorable for sellers. Shortages like this mean it’s a good time to get into real estate investment. When demand supersedes supply, prices go up. New houses just aren’t being built fast enough in most parts of the country to meet the needs of buyers.

Millennial Buyers

Most experts tend to say that the millennial generation is mostly renters and not homeowners. This isn’t particularly true anymore, because the age group is now getting older and buying houses. The older millennials are wanting to settle down, and they’ve been in the job force long enough to have decent careers at this point. Younger millennials are still mostly renters, and this is a good thing for those looking into getting into real estate investment to buy rental properties.

Economic Growth

When the economy is growing, it’s a good time to get into real estate investment. New jobs are being made available in many places, companies are hiring, and wages are going up. When you notice that people are making more money than they used to, you’ll also notice they are moving and getting nicer things. When people can afford more, they usually like to upsize their homes. This is helpful for those looking to sell or rent their investment properties.

Higher Prices

As the economy grows, the prices of goods and services go up. Some areas are witnessing large increases in prices of homes while other areas are seeing smaller jumps. This is good for people in the field of real estate investment. If you own a home in a city where the housing prices are increasing rapidly, then it might be a good time to list it for sale. It might also be a good time to rent out your property because people who can’t buy will have to rent instead.

These are just a few of the many reasons to become an investor. The economy is growing, people are getting better jobs, and people who couldn’t buy before can now afford their dream homes.

For businesses of any size, the first few years are the most critical. Some businesses experience tremendous growth while others experience growing pains. As you head into your first few years as a small business owner, there are a few things you can do to help bolster your chances of growth and success.

Have a Clear Plan

Obviously, having a business plan is a must, but it’s important to extend your business plan beyond day one. Make a plan for at least three, if not five, years into the future. Know the direction in which you want your business to go so that when faced with decisions, you make them based on where you’re headed, not where you are at that moment.

Hire Help Early

A mistake many business owners make is that they don’t bring on help early enough. As a determined business owner, it’s tempting to buckle down and do it all yourself. However, the reality is that you can be much more productive when you have someone to share the load. Take a look at your business, decide where you need help and then find the right person. Keep in mind that the hiring process can take a while, so if you wait until you absolutely need help, it may already be too late.

Reinvest in Your Business

A majority of the money you make within your first year of operation should go right back into your business. Paying for advertising, hiring more employees or purchasing additional inventory can give your business a boost you wouldn’t have if you didn’t reinvest. Try to reinvest as much as you can so you can enjoy the rewards that come with it.

Put Your Customers First

The key to long-term success is keeping the needs of your customers at the forefront of your business. If you have a product-based business, your products should evolve and grow with your customers. With a service-based business, the same applies. Your service should change with the changing needs of your clients. It is a mistake to create an offer and then never change it for as long as you’re in business. Listen to your customers, take their feedback and give them a reason to keep coming back.

While there is no foolproof way to guarantee success in your first few years as a small business, there are a few things you can do to increase your chances. Keep these in mind, work hard and watch your business soar.

Leadership is a great skill to have when running a business, and a skill that many people continually work hard to achieve. Whether you run a large or small business, chances are you have employees who look up to you and need your guidance. Here are four traits of effective business leaders. 

1. Flexibility

Technology and best practices for running a business are constantly changing, so the best leaders in their field need to be ready to adapt and thrive with these changes. While it is important to have a long-term vision for your company, it is essential to keep an open mind and have plans to overcome any unforeseen obstacles that might get in the way.  A successful leader adjusts his or her plans when they no longer prove to be effective, quickly changing the way they go about long and short-term goals. 

2. Honesty

Competent leaders know that trustworthiness is one of the most important, if not the most important, traits to have among employees and employers alike. Employees like to know sooner rather than later if they are doing a good job in their position, and employers appreciate knowing if you are having a problem with a certain project or meeting a deadline. Integrity within a business goes a long way in terms of attracting and maintaining a customer base, both in terms of buying a new product and entrusting a service to your company.  

3. Engagement

Great leadership involves asking for feedback and opinions from those who you interact with at your company. While some personality types may have a difficult time delegating tasks to others, it is important to consider the skills of the group you are working with and assign tasks to those who are most competent to complete a particular assignment. The ability to consider the opinions of people in your group also goes a long way towards gaining trust. 

4. Passion

A great leader does not necessarily need to be an extroverted person, but they should have a passion for helping people and the work that they are doing. This attitude will rub off on your employees and lead them to be more enthusiastic and productive. People who are passionate about what they do are also less likely to become unmotivated after a failure or setback. 

With these four traits, you are on your way to bringing effective and productive leadership in your workplace. 

For many investors and business owners, the first place they will go to seek out a loan is a bank. Banks typically have lots of experience lending money, and if you can secure one, bank loans can be affordable and reasonably easy to manage.

However, not every prospective investor will qualify for a loan. Sometimes banks are reluctant or simply unwilling to lend to individuals without a long financial history, or with subpar credit scores. In such cases, considering methods of alternative lending can be essential to securing funding for your given project. Below are three alternative methods worth considering.

Crowdfunding

Crowdfunding is an increasingly popular means of funding projects. In what may be its most common perception, this technique involves seeking a large number of small donations from investors in a new business or project. Typically, investors receive a small gift for their investment, or maybe a very small amount of equity in a new business. The increasing popularity of platforms like Kickstarter and Indiegogo has made this fairly common.

Another means of crowdfunding involves doing much the same thing, but with a small number of large dollar donors. These individuals or groups — like venture capitalists — typically provide substantial cash up front in exchange for an ownership stake in the business.

While the first method can be quite successful in some cases, it can also be difficult to raise a great deal of money for a unknown businesses or business owner. Then, while the latter method can often provide substantial cash, it requires a new owner to give up a stake in his or her business.

Asset-Based Loans

An asset-based loan is exactly what it sounds like: money lent on the collateralized basis of some asset, which might be property, inventory, equipment, or something else. While typically not a means to fully fund a new business or project, an asset-based loan can go a long way towards generating needed capital. These loans are also typically quick to secure, and have few restrictions.

Business-to-Business Loans

B2B loans are another increasingly popular way to fund new business projects. Under this system, one business or several businesses lends money directly to a new business or business owner. This can sometimes be an effective way to access cash if you’re unlikely to be approved for a more traditional loan.

Ultimately, having trouble securing a bank loan does not mean your business plans are dashed, and there remain a number of alternative ways to raise money for a new business or project. 

Accounts receivable financing (AR financing) is a viable option, especially for small businesses that need fast cash. Check out a few of the advantages below:

Increase Cash Flow

As a business owner, you always have a variety of needs and each of those needs require money. You have to pay your employees. You need to save up for seasons when you might not have as many sales. Sometimes you need to spend money on maintaining or upgrading your equipment or technology. Other times, an opportunity arises in the form of expanding your office space or adding a new location. You might have an exciting project coming up or innovative ways to expand your business and reach new customers. All of these things require you to have cash on hand and that’s when an option like accounts receivable financing can come in handy.

Qualify More Easily

When it comes to qualifying for traditional loans, sometimes the requirements can be too great a hurtle for businesses to jump. If your credit score is too low, you haven’t been in business for a long time, or you need a relatively small amount of money, you might not meet the rigorous standards set by your local bank. Furthermore, if you’re hesitant to risk your personal property by using it as collateral or you just don’t have what your bank is looking for to mitigate the risk of offering you a loan, you might have to consider other options. With AR financing, your lender will be looking at your customers’ credit ratings, giving you less to worry about as you seek to qualify for the funds you need.

Get Access to Fast Funds

Depending on your contracts with your customers, you can be waiting several weeks or even a few months to receive payment for your products and services. And some customers are simply tardy in fulfilling their obligations. In the meantime, you have everyday expenses that don’t stop for lapses in cash flow. You have to pay staff members, rental rates for your office space, production costs, etc. You could try applying for a traditional loan, but even if you qualify, it might take a number of weeks for you to receive the funds. Especially in the case of an unexpected event, that might be too long. Instead, consider AR financing: You could receive the money in just a couple of business days and soon be on your way to putting it to good use.

Sometimes you need to think outside the box to find a solution – in that case, AR financing might be just the answer for you.

If you are interested in starting a business, a franchise can be a great opportunity. It comes with the independence of owning a business and the support of a large corporation. Despite that, you still need a significant amount of cash to open and run it. Most people do not have that amount of money in the bank waiting for a business and opportunity, so they might have to opt for franchise loans. Here are a few popular options for financing a franchise.

Franchisor Financing

Before you explore other financing options, approach your prospective franchisor first. Most businesses with this kind of business model usually offer financing solutions to their franchisees. If you work with a franchisor that offers a financing program to franchisees, you do not have to explore other funding solutions,

Commercial Bank Loans

Another way of getting franchise loans is through traditional loans. It is the most common go-to solution when people want loans to finance a business. How it works is that a bank gives you a large sum of money upfront, which you repay in installments plus interest over a specific period. The bank has to review your business plan to check its viability and access your personal credit history to determine if you can repay the loan.

SBA Loans

An SBA loan is usually an attractive option for anyone looking to start a business. SBA loans also follow the same model as traditional banks and alternative lenders. You can explore this option and see if you are eligible as it comes with its set of benefits.

Alternative Lenders

Entrepreneurs can also get franchise loans from alternative lenders. They are less strict, and they offer different loan options like equipment financing. However, they can be expensive as they come with a short term for repaying the loan, and the amount offered may be lower.

Crowdfunding

Another creative way of obtaining funds for your franchise is through crowdfunding. Setting a crowdfunding page allows you to access funds if you find people interested in your business idea and ready to finance it.

Loans From Friends and Family

Another way people can access franchise loans is through friends and family. You can either bring them in as partners or ask them to loan you the cash. Ensure you draw a loan repayment agreement to avoid conflict.

If you feel that being part of a franchise is a great business opportunity, you can explore the above financing options. You can also reach out to Advanced Commercial Capital LLC for the funding assistance you need to get your business running.

Franchising is a popular business model in the United States with over 750,000 franchise establishments in operation across more than 3,000 different franchised concepts. For entrepreneurs, franchising offers many benefits compared to starting a business from scratch. For example, franchised concepts have a developed business model with some amount of established awareness, corporate office support, training, and other features. Yet, there are still challenges faced in buying a franchise including getting franchise financing.

Challenges of Buying a Franchise

Some of the challenges faced by someone who is eager to buy a franchise include some significant costs. Startup costs include a franchise fee, potential real estate and build-out costs, expenses for supplies, inventory and daily operations, personnel costs, and marketing costs. For most new owners, these costs require franchise financing.

Other challenges include the learning curve present for every new enterprise as well as dealing with (and having patience for) the ups and downs of business.

And there are some risks including having insufficient capital and choosing the wrong location.

Franchise Financing Options

There are many good ways to get the franchise financing that is needed to start your franchise:

Many franchisors will offer financial assistance, either from the corporation itself or from partnering financial sources.
Commercial bank loans are the traditional second “go-to” after consulting with the franchisor for their assistance.
SBA loans are an excellent avenue for a new franchise owner. These loans are specifically focused on small businesses. They are available from banks and other lenders and guaranteed by the SBA, and they offer favorable interest rates and payment terms.
Alternative lenders offer good ways to get the franchise financing that is needed.

Getting approved for franchise financing requires a good business plan, a good credit score, and may also require a down payment and/or the pledge of collateral.

Seek Expert Financial Assistance

Contact Overhead Capital Ltd. for financial solutions to address your franchise purchase and ongoing capital needs. Our experienced financial professionals can help you secure funding to meet your business’s financial needs and goals.    

As strange as it seems, factoring has been around for some time and is actually one of the easiest ways to speed up your cash flow. In the past few years, it’s become more prevalent, due to the growth and expansion of alternative financing. How much do you know about it? You probably don’t know not as much as you might think.

What Is It?

A financing company buys your outstanding invoices, paying you approximately 85% of their value. They contact your customers and let them know that they will be collecting payment instead of you. After the customer pays their invoice, you will receive the other 15%. Of course, you must pay a percentage, as well as any additional fees the company chooses to request.

Advantages vs Disadvantages

Before you decide if this is right for you, you’ll want to think about the advantages versus the disadvantages.

Advantages

Quick access to working capital
Credit standing doesn’t matter

Disadvantages

Can be expensive

How Can You Benefit from Factoring?

Typically, there are two reasons a company decides to use factoring: its quick and easy, which means it’s great for companies that need money right way but have not established their presence.

Small- to medium-sized companies benefit because it allows them to expand and serve their clients better.

Misconceptions About Factoring

There are several misconceptions about factoring, due mainly to the spread of false information. Here are a few of them:

It will alienate your customers.
It only works for large companies.
It means your company is not stable.

Bottom Line

Factoring is gaining popularity, mainly due to the fact that banks aren’t lending money as readily as they have in the past. Instead, businesses are looking for alternatives to financing and factoring is a great option. Contact Overhead Capital Ltd. today to learn about our factoring solutions.

Fitness centers are essential for people trying to maintain their physical and mental health. However, starting a fitness center and running it as a business calls for you to consider several factors. Having the right funding platform for the business is one of the main factors. But how do you get the right business funding for your fitness center?

Create a Comprehensive Business Plan

Through your business plan, you express your desire and vision for the new fitness center. In the business plan, you also describe your experience and expertise in the industry, making it possible to attract investors and secure business funding. You have a higher chance of making your dreams a reality when you have a realistic business plan.

Calculate All Startup and Project Operating Costs

You should note that lenders will need to see your projections to get the funding you need for your business. This is after solid industry research concerning your business model. The startup and operating costs, to a larger extent, tell the lender how you will use the funds for business growth.

Prepare Relevant Documents for Loan Applications

When you compile relevant financial information and documents, the loan application process becomes easier to navigate. The application requirements differ with the lender. Seek to understand the type of information and documents the lenders need to increase your chances of getting business funding. The process can be hectic for a gym company as you also need to adhere to safety and health protocols.

Seek Out a Business Partner

A partner makes it possible to have a productive business management process in the fitness center enterprise. Seek a business partner with complementary skills and with the ability to finance your business. You can consider a limited liability partnership or limited liability company for your fitness center enterprise.

Seek Sponsorship

Local businesses can provide the sponsorship that you need for your fitness center enterprise. You can solicit local businesses to sponsor advertisements within the gym and, in return, get help in offsetting operational costs. You can also get additional income to help run your business. If the local business offers complementary services to your fitness center, you should consider working together.

Getting sustainable business funding for your new fitness center can be hectic when you lack guidance. Reach out to Overhead Capital Ltd. today to learn more.

There is an endless supply of commercial real estate. From gas stations to industrial buildings, to municipal buildings to apartments, to office buildings and even cemeteries and synagogues. There are lot of options for investors looking into commercial real estate, but the question is often: Which type of commercial real estate property is the best to invest in?

The Best Investments

Flex spaces, light industrial complexes and spaces, are always in demand. They are easy to lease, easy to maintain and the tenants typically always take good care of these spaces since they’re designed partially for business and partially for living. Apartment and multifamily properties also carry some of the lowest risks in the industry with the only downside being the high cost of maintenance and management. 

Self Storage units have withstood every economic downturn in history and always manage to stay on top. They are easy to maintain with little maintenance due to the lack of live-in tenants with the only downside being that the industry is incredibly competitive. Self Storage businesses pop up next door to each other, competing for customers by offering the lowest price possible while including highest level of amenities that make sense. On the other hand, mobile park homes have proven to hold almost zero risks as long as everyone owns their own mobile home. There are no buildings or repairs needed. Most of your money will be spent in landscaping and lighting; the renters generally take care of their own area.

Iffy Investments

Single-tenant, single-use buildings (i.e. car dealerships) carry the highest investment risks available. Due to being so specific and expensive, when they’re good (you have a tenant) they’re good, but when they’re bad, they’re awful. This kind of investment is also, oftentimes very hard to sell due to the enormous space and specific layout needs.

What’s In Demand

While flex spaces are always a good investment, multifamily homes — between 2 and 4 units — and co-working spaces are in the most demand. Multifamily homes with under 5 units are often financed just like primary homes and thus come with traditional bank loans and low interest rates as opposed to actual commercial loans which are generally harder to get and come with significantly higher interest rates. With the pandemic and everyone working from home, the need for office space has greatly come into question leading to the rise in demand for co-working spaces. Co-working spaces allow businesses to save on overhead costs while still having a physical location to come to if necessary. These two types of commercial real estate are your best options for immediate returns.

Contact Overhead Capital Ltd. today to get your commercial properties financed successfully.

Have you recently been thinking about investing in real estate? Many people have considered making money by becoming real estate investors. Luckily, there are a few good reasons that may encourage you to begin investing. New Developments In some parts...
Continue Reading →
For businesses of any size, the first few years are the most critical. Some businesses experience tremendous growth while others experience growing pains. As you head into your first few years as a small business owner, there are a few...
Continue Reading →
Leadership is a great skill to have when running a business, and a skill that many people continually work hard to achieve. Whether you run a large or small business, chances are you have employees who look up to you...
Continue Reading →
For many investors and business owners, the first place they will go to seek out a loan is a bank. Banks typically have lots of experience lending money, and if you can secure one, bank loans can be affordable and...
Continue Reading →
Accounts receivable financing (AR financing) is a viable option, especially for small businesses that need fast cash. Check out a few of the advantages below: Increase Cash Flow As a business owner, you always have a variety of needs and...
Continue Reading →
If you are interested in starting a business, a franchise can be a great opportunity. It comes with the independence of owning a business and the support of a large corporation. Despite that, you still need a significant amount of...
Continue Reading →
Franchising is a popular business model in the United States with over 750,000 franchise establishments in operation across more than 3,000 different franchised concepts. For entrepreneurs, franchising offers many benefits compared to starting a business from scratch. For example, franchised...
Continue Reading →
As strange as it seems, factoring has been around for some time and is actually one of the easiest ways to speed up your cash flow. In the past few years, it’s become more prevalent, due to the growth and...
Continue Reading →
Fitness centers are essential for people trying to maintain their physical and mental health. However, starting a fitness center and running it as a business calls for you to consider several factors. Having the right funding platform for the business...
Continue Reading →
There is an endless supply of commercial real estate. From gas stations to industrial buildings, to municipal buildings to apartments, to office buildings and even cemeteries and synagogues. There are lot of options for investors looking into commercial real estate,...
Continue Reading →