by ARTIS COMMERCIAL CAPITAL | Sep 13, 2022 | Blog
A business owner will likely be very protective of what he or she has created. For this reason, he or she will want to have all the control over his or her business’s processes. The unfortunate fact of the matter is that no matter how hard he or she works, he or she cannot manage every single task that is required to keep a company’s plan in motion. This becomes especially the case when the business begins to grow and expand. At some certain points, all business owners must relinquish some control to the employees that he or she hires. Here are some reasons why.
1. He or She Needs To Focus on Running the Business
The job of a business owner should be to make sure that the business is running the way that it needs to run. He or she cannot focus on that task effectively if he or she is doing a multitude of other tasks. If a great business plan is not created and then adjusted with the market or with the progress of the business, then problems can start to occur. With enough of these, the whole business will end up failing. It may seem difficult to trust that employees will be able to handle smaller tasks on their own, but this is necessary.
2. Some Workers Can Do Tasks Better Than Her or Him
A business owner can have more trust in his or her employees when he or she realizes that employees have skill sets that he or she might not have. He or she is usually not able to have the levels of experience that his or her employees have in certain skill areas. Good accountants, for example, have gone through years of schooling and working in the area of accounting.
An owner can have these years of experience, but he or she probably won’t also have years of experience in something such as coding. Once he or she accepts this, he or she can recognize that allowing other people to assist in their dream business will only make the business stronger in the end.
Hiring employees is an eventual necessity for any business. All that owners can do is make sure that he or she is hiring people who have an ample amount of necessary skills and experience. In the end, when he or she sees the profits increase, he or she will be glad that this task was done.
by ARTIS COMMERCIAL CAPITAL | Sep 6, 2022 | Blog
If you are walking through a busy section of town, surrounded by shoppers, you may begin to wonder about the value of owning retail real estate. After all, in a high-performing neighborhood, it may seem like retail property would be an extremely reliable investment, one with steady cash flow that could easily pay for itself in time.
In practice, retail real estate can indeed sometimes be all it’s advertised to be. However, it takes careful consideration and sound investment decisions before determining whether this is definitively the case.
Read on to learn a little more about the investment value of the retail property.
Location Is Everything
Retail real estate is almost always dependent on in-person foot traffic for good business. Consequently, where a given retail space is located is of prime importance in understanding the property’s value as an investment.
How has business been in the given neighborhood traditionally? Is the neighborhood improving, or on the decline? Are there any factors — new construction, changes to permitting or zoning laws, or anything else — that might affect the future value of a retail location? Questions like these are extremely essential to understanding the value of a given site.
Reliable Cash Flow
Commercial property can often be an attractive investment because commercial leases tend to be longer and more stable than residential leases. That said, you will want to ensure that any property in which you consider investing has reliable tenants. Have the current businesses been present in that location for a long time? Financially, are they performing well? It is vital to understand how reliable cash flow will be at a given retail location.
Property Condition
Finally, it is essential to know about the condition of the property in which you are investing. A property that has been well-maintained for years can make a lovely ownership opportunity, requiring only limited upkeep.
However, sometimes retail sites have been neglected over the years, for one reason or another. Purchasing a retail real estate site and learning about plumbing, electrical, or other issues can be a major hassle. You will be on the hook for making necessary repairs, and keeping tenants happy. Thoroughly investigating any problems before purchasing is vital.
Ultimately, the retail property can make a great investment — but circumstances are important. Be sure to do all necessary legwork prior to a purchase to ensure that a given retail location is worth your time and investment.
by ARTIS COMMERCIAL CAPITAL | Aug 23, 2022 | Blog
How can you ensure you have the working capital at hand for your business to stay running full steam ahead? A business line of credit has worked for many companies, and this option may be right for you.
How Business Line of Credit Works
The closest analog to a line of credit is a credit card. Like the limit you have on your credit card to make purchases, a business line of credit has an express amount of funds you can draw from as needed. Similar to a credit card, your line of credit may be revolving credit, which means that what you repay becomes available again for borrowing.
The Cost of a Line of Credit
A business line of credit has different fees that depend on your particular agreement. Expect these four types of fees for a line of credit.
- Origination fees: The fee the lender charges when you enter the agreement.
- Draw fees: Similar to an origination fee, this charge is a percentage deducted before disbursal from your withdrawal amount.
- Bank wire fees: A possible charge for a money transfer.
- Maintenance fees: A charge by the lender for keeping the account open if you do not use it, something like an annual fee for a credit card or maintenance fees for other types of bank accounts.
Business Line of Credit Versus a Business Loan
When deciding which credit route to take, both business loans and business lines of credit have distinct advantages. A loan is typically approved for a specific purpose. A loan can be cheaper than a line of credit, but that is not a hard and fast rule.
A line of credit can be used as you need it, and this flexibility is a huge plus. Consider a line of credit as better for routine costs or emergencies that you can pay back rapidly. Credit lines are great to float you through slow periods. An available line of credit eliminates all the work of getting approved for a loan every time you need extra funds.
It is generally advantageous to keep a line of credit and open other business loans as needed. Responsible use of a credit line improves your credit score and makes it easier to get a bigger loan at the appropriate moment.
Business lines of credit can be a strategic addition to your credit portfolio. A credit line helps you have needed working capital at a reasonable rate while helping you improve your credit score when used responsibly.
by ARTIS COMMERCIAL CAPITAL | Aug 16, 2022 | Blog
If you want to start a business and are not independently wealthy, odds are you will need a business loan. In the simplest sense, a business loan is a sum lent that can help you establish a new business, which will be repaid as the business grows.
But for a number of reasons, business loans can sometimes be tough to access. You may have a limited or non-existent business history, making lenders reluctant to offer you money. On the other hand, your business idea may be unusual or risky, leading lenders to pursue safer investments.
Still, with hard work and attention to detail, there are many ways to access business loans. Below are several important things to keep in mind as you work to secure financing.
A Great Business Plan Is Key
One of the most important steps in accessing a business loan is creating a sterling business plan. A business plan is essentially a document that lays out, in sufficient detail, how you intend to operate your business and why it will have success. It will serve as a blueprint for prospective lenders, demonstrating that you have a workable plan and can repay any loan.
In your business plan, be sure not to go light on details! You will want to have thorough financial projections and analyses, including market research, to show you are prepared for what you are getting into.
Shop Around
There is more than one way to fund a business and more than one means of accessing a business loan. Be sure to do your research and find your best lending options.
Starting with a local bank or credit union is usually a great idea — but there are other options. For some business, crowdfunding can work well. For some individuals, a private loan may be an option. Work to determine what will make sense for you.
Be Realistic
Having a realistic sense of what is possible is important in accessing a loan. Don’t ask a bank for an exorbitant sum if you have no business experience. Seek out what you need, not just what you want. Demonstrate why you need a given amount of money, and work to prove it’s an appropriate amount for your idea.
Ultimately, even with limited experience, there are ways to access business loans. The tips above can help you as you endeavor to find the right loan for your new business.
by ARTIS COMMERCIAL CAPITAL | Aug 9, 2022 | Blog
Maybe after your latest marathon of home renovation shows, you’re ready to take the plunge into the home rehab market. Even if you have little experience and less than perfect credit, you can find financing through one of these loan options.
Home Equity Line of Credit (HELOC)
If you own your home, you have an excellent source for financing as you can borrow a line of credit with your home as collateral. HELOCs have great rates, and you may be able to borrow up to 85% of your home’s value. You are only charged interest on the amount of money you use, and you can withdraw money as needed, making this one of the least expensive loan options.
Investor or Partner
Combine skillsets with another person in a fix and flip business. Allocate your responsibilities and share of the profit. Search for a partner with cash and financial connections while you handle the labor and work to combine forces into a prosperous business relationship.
Personal Loans
Personal loans might be a reasonable option if you have excellent credit and don’t need a large sum of money. You may decide to use a personal loan to supplement another financing solution. A personal loan can be preferable because you don’t have restrictions on how you use the money.
Friends and Family
If the previous loan types are not feasible, you can try to secure financial support from friends and family. You are most likely to get the best rates from a relative or close friend. You won’t have to go through the heavy paperwork of a lending institution, but you may have to sharpen your pitch skills. That doesn’t mean you should eschew a contract. You can ruin a good relationship by neglecting to clarify expectations. Clearly define a repayment schedule and how to proceed in the event of a loss.
Hard Money Loans
Hard money loans are often used for fix and flip projects. The loan can provide all the funding you need in one agreement if you plan carefully. The APR is relatively high for hard money loans, but the rate might be worth it if you can quickly flip the house. No matter the financing you choose, remember to factor in carrying costs (property expenses, such as taxes and insurance), the origination fee, downpayment, material and labor charges, and closing costs at the home’s sale.
Real estate has always been a lucrative business. Decide on your best financing alternative, and you can get in on the home-flipping market.
