Tag: line of credit

Acupuncture Clinic Business Loan

Acupuncture clinic business loans are moderately easy to obtain given that it is a healthcare associated business. In some cases, and to a limited extent – some private insurance companies do provide for the reimbursement of acupuncturist services. One of the nice things about owning and operating one of these businesses is that a license in order to provide the services to the general public is usually required.

The moderately high barriers to entry to provide a certain level of economic staying power for most of these often times, acupuncture services are rendered in conjunction with chiropractic services and related allied health professionals in order to provide non-pharmaceutical approaches to certain medical conditions. Acupuncture has gained a significant amount of notoriety and popularity among people that are looking for more holistic ways to treat specific medical conditions. As such, these businesses are generally able to remain profitable and cash flow positive in any economic climate. However, there are a number of areas that do not provide for the medical reimbursement of acupuncturist services. As such, the patients are required to pay for the services on an ongoing basis.

Startup costs are associated with an acupuncture clinic are generally considered to be low. Equipment required typically ranges anywhere from $10,000 to $20,000 and most of this is specific for furnishing individual patient treatment rooms. As such, the primary financing needed in order to own and operate an acupuncture clinic is specific for working capital purposes.  Most of the ongoing expenses regarding an acupuncture clinic are pretty low. In fact, most acupuncture clinics operate simply with the practitioner rendering all services and handling all incoming patients. In more established practices, a receptionist or practice manager may be hired when the acupuncturist time is completely dedicated to rendering services to patients.

For these types of businesses, and acupuncture clinic business plan is going to be required and submitted to the bank. This business plan should feature a three-year to five year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page. Most importantly, a thorough demographic analysis is going to be needed within the business planning top banker understands the demographics are to be targeted from the onset of operations. The demographic that should be examined include median household income, median family income, population size, population density, as well as the number of people that carry private insurance that would cover the reimbursement of acupuncturist services. A marketing plan should also be included within this document which should focus substantially on developing relationships with physicians, dentists, physical therapists, as well as allied health professionals that can provide ongoing referrals to people that are seeking specialized holistic treatments is, many acupuncturists have developed ongoing relationships with oncologists as some studies have indicated that the practice of acupuncture can assist with cancer treatments,

As it relates to to acupuncturists in order to assist with very specific medical ailments. Currently, the economic climate is strong and patients are willing to pay for the services even during times of economic recession given that they consider it a necessity for their  well being. As more people from the baby boomer generation reach their senior years – it is also expected that these individuals will want to turn towards holistic treatments in order to reduce the number of pharmaceuticals and you to take for day-to-day pain. There is really nothing that is going to change about this given the this service. However, more acupuncture schools are starting and the competition among individual acupuncturists may increase over the next 20 years especially as demand increases as well.

Overall, receiving a acupuncturist clinic business loan is a pretty straightforward process and should be met only with minimal difficulty for someone that possesses a valid license to provide these services to the general public. Again, the key is that you are going to need to provide a significant amount documentation to a financial institution while concurrently showing how the practice will become cash flow positive as quickly as possible.

General Contractor Business Loan

General contractor business loans are almost always able to be obtained relatively easily in most economic climates. During times of very high interest rates or economic recession, the ability for general contractor to receive a business loan is somewhat muted given that banks are little more conservative as it relates to real estate focused lending. However, most general contractors are able to remain profitable and cash flow positive in any economic climate given that people are going to continue to need repairs to their homes, offices, real estate investments, and other standing structures on an ongoing basis. As such, many general contractors – rather than taking out a business loan – will actually seek to obtain financing via a working capital line of credit. However, some individuals will still receive a business loan for the tangible assets that they need to purchase in conjunction with the general contracting business. The primary assets that are purchased by a general contractor include vehicles, construction equipment, furniture, fixtures, related equipment, and inventories of parts that are normally used in concert with providing general contracting services. One of the most important things to know when approaching a bank for a general contractor business loan is to provide them with an extensive list of the assets that are purchased using the capital sought. For highly established contracting businesses, most financial institutions are willing to lend 100% of the capital needed for a business expansion provided that it is going to be hard assets that are purchased with the financing.

The dynamic way in which a general contractor can produce revenues allows them to be very economically viable candidates for funding. First, general contractors have the ability to easily obtain revenues by providing general repair and renovation services to the general public. These typically are considered to be high gross margin services given that it is the direct cell labor that is principally involved with this business. Two, general contractors are able to produce substantial revenues if they operate on a speculative basis by developing homes and real estate buildings that will then either be rented or sold to third-party investors. The diversity in which a general contractor may produce revenues and profits does lend them to be good candidates for most types of business funding. Almost all general contracting businesses are also candidates for small business administration loans. This is primarily due to the fact that there are always many jobs that are created when a general contractor takes on larger scale projects.

One of the other things that needs to be discussed with the loan officer is whether or not the general contractor will be providing some services through the usage of subcontractors. This creates a little bit of a complexity as it relates to operating a contracting business. As such, this is something that should be discussed with them in regards to the gross margins potentially changing if subcontracted labor is used. However, the gross profits generated from each project – even with the use of subcontracted labor – is still substantial and readily provides a general contractor with the ability to satisfy any underlying debt obligation on a month-to-month basis. This is something that should be made clear within the business plan that is provided to the financial institution.

As it relates to the general contractor business plan, this document needs to feature a three-year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page that features information that is standard to the general contracting industry. Each year, more than $2.2 trillion worth of construction and contracting services are rendered to the general public. The very large demand and huge part of the economy that makes up construction businesses allows them to easily expand in most economic climates. One of the key things to thriving within this industry is to be able to contract operations in the event of a severe economic recession or during times of very high interest rates where people pull back on new housing and new office development constructions. One of the things that we will continue to discuss throughout this website is the ongoing changes in the economy and how they impact certain sectors of the overall real estate market.

In closing, a real estate contracting business is able to almost always provide enough capital at the end of the month to pay back any principal and interest payments that may be associated with a general contractor business loan. These businesses are not going to change anytime soon even with advances in technology.

Lawn Mowing Service Business Loan

Lawn mowing service business loans are readily available to most entrepreneurs looking to provide this service the general public. The vast majority of the funds that are used for a lawn mowing service are specific for trucks, trailers, lawnmowers, and related equipment. The gross margins generated from these services are almost always able to support a debt obligation given that this is a service-based business.

In most instances, a lawn mowing service typically carries gross margins ranging anywhere from 60% to 95% depending on a few factors. If labor is considered as part of the cost of goods sold then this may decrease the gross margins somewhat also the fact that a business may accept credit cards as a form of payment may also incur a higher gross margin cost. However, overall these businesses are extremely profitable and are almost always able to produce revenues in any economic climate. This is especially true in both your area or areas where people tend to outsource lawn mowing in one’s landscaping contracting to a third party. Generally speaking, the startup costs that are associated with the new lawn mowing service ranging where from $30,000 to $100,000 depending on the area and initial scope and scale of the business.

Banks and lenders are almost always willing to provide the necessary capital for these types of business, again, given the very large tangible asset base associated with these companies. Foremost, a lender is going to want to see what equipment is going to be purchased with the money that is being borrowed. This includes providing a list of inventory including the make and model of trucks they purchased, trailers, lawn mowing equipment, as well as any other type of specialty equipment that would be used in the normal process of landscape contracting and lawn mowing. A business plan specific for a lawn mowing service should be included as well that showcases the profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page that features information normally associated with a lawn mowing service. Most importantly, a special focus should be paid to the tangible assets that are being purchased if the entrepreneur is seeking a lawn mowing service business loan.

Almost all lenders are going to want to see that the founder is making a 10% to 20% capital injection into the business in order to ensure that they can finance the ongoing operating expenses of the business for at least one year. Most banks and lenders prefer that the owner make the capital injection as a relates to working capital given that they want to see that the vast majority of the loan proceeds are used for tangible asset purchases. This is going to be one of the ongoing things that we discussed throughout this website as it relates to ensuring that a bank loan is almost nearly fully collateralized by hard assets. This is true even among service businesses like lawn mowing companies.

As part of the business loan package, most financial institutions are going to require that at least two years of tax returns are provided. This is true even if the business is a startup in which case the bank is going to want to see tax returns from the owner. If the proceeds of the lawnmowing service business loans are to be used for acquisition, then the financial institution will most likely want to see the tax returns of the current business for at least two years back. As such, it is important that a certified public accountant is hired so that these pieces of documentation can be properly provided to the bank especially in the case of a business acquisition.

In northern areas of the country, it should be made clear within any documentation that is presented to a bank that lawnmowing services are a seasonal business. This creates a little bit of additional complexity given that the owner is going to need to show how the business will make repayments of principal and interest from the business loan when the business is not generating revenue. This is generally not an issue in southeastern and southwestern based states given that the services are in demand on a year-round basis. A cash flow analysis that clearly showcases the first years expenditures should be included as well as it will provide the loan officer or the loan committee of an understanding of how the loan will be repaid. It is very important, in fact it is the most important fact within of receiving a lawnmowing service business loan, to clearly showcase to a financial institution how the credit facility will be paid back on a monthly basis. A loan amortization table should be included with any documentation that showcases the anticipated term and the anticipated interest rate that will be received by the business owner.

Very little is expected to change as a relates to lawn mowing services, and as such banks are very keen to provide a significant amount of ongoing capital support to these companies that they are able to generate revenues in any economic climate. Once a lawn mowing services established and per generating a substantial amount of profit – it becomes even easier to get financing as a significant portion of these proceeds will be used for the ongoing expansion of the business. While competitive threats are somewhat of an issue regarding these businesses given the very low barriers to entry – once an entrepreneur establishes their business as a high quality and well-known provider of landscape contracting and lawn mowing services they are usually able to remain profitable at all times.

Cell Phone Repair Store SWOT Analysis

The key strength to owning and operating a cell phone repair store is that these businesses are in continued demand given that having a mobile device is now a way of life for most people on a worldwide basis. The barriers to entry for this type of business are considered to be moderately low given that there are a number of people who are familiar with electronics and canned make appropriate fixes to most cell phones. The startup costs associated with this type of business typically ranges anywhere from $50,000 to $100,000 depending on the geographic location in which the business will be operated. The inventory cost for these businesses is typically very low as well with most companies having $5,000 to $10,000 of inventory, furniture, fixtures, and equipment. The vast majority of the start of capital needed for this type of business is typically allocated towards startup costs and working capital needs. One of the ways that these businesses can also maintain a very strong market presence is by partnering with an established cell phone manufacturer or acting as an authorized dealer for a specific type of cell phone brand. Cell phone repair stores are generally able to remain profitable and cash flow positive at all times, and enjoy a tremendous degree of economic staying power.

For weaknesses, the ongoing operational expenses of a cell phone repair store are considered to be moderate. Typically, an individual needs to have a few employees on staff that are very familiar with how cell phones are repaired and this can lead to a very high expense as it relates to training new employees. Additionally, one of the weaknesses associated with this business is that there can be some that relates to the privacy of a customer. Many people carry significant amount of information on their mobile phones – and as such – it is important that proper procedures and protocols are in place to ensure that the privacy of the customers content it remains intact at all times.

For opportunities, many cell phone repair stores expand their operations by simply establishing new locations. As the startup costs associated with the new location are somewhat low, most profitable cell phone repair stores can be expanded very aggressively and very quickly. In some cases, cell phone repair stores will also maintain e-commerce functionality where a customer can mail their phone to the location to have it repaired. This allows the business to operate on a much larger scale given the individual customers do not need to come to the location in order to have their cell phones and tablets fixed. Most financial institutions are willing to provide profitable cell phone stores with business loans and lines of credit for expansion purposes.

For threats, outside of competition within any moderate scale suburban or metropolitan market – there’s very little ongoing risk associated with this business. The usage of mobile devices is expected to continue in perpetuity, and as such – these businesses will be able to remain profitable and cash flow positive in any economic climate. There is currently no pieces of legislation or regulation that would impact the way that these companies conduct their operations.

Asbestos Removal Service SWOT Analysis

As many buildings are reaching the age where they need to be demolished or refinished, especially this removal services are especially important companies that can help retrofit a building that needs to have asbestos removed. One of the most important strengths related to these businesses is that they are always in demand regardless of the general economic climate. This is due to the fact that there are many laws and regulations in place that now require that old buildings have their asbestos removed. The gross margins generated from the services are also very high given that the fees are substantial due to the hazardous nature of this type work. In most cases, provided that the lilies of the company – gross margins typically range anywhere from 60% to 90% depending what consists of the cost of goods sold anywhere from $100,000 dollars to $300,000 depending on the vehicles, these businesses are expected to remain in profitable operation for at least the next 20 years as more states and municipalities enact building codes require that asbestos is removed.

The primary weakness with an asbestos removal service is the fact that this is a hazardous materials business. As such, the operating expenses are very high especially from the standpoint of requiring insurance that needs to be held in place at all times. Additionally, there may be liabilities associated with having employees that are consistently exposed was best as if they are not given the proper equipment to do their job. One of the other weaknesses regarding a in asbestos removal service is that these businesses will have at some point and end point. This is due to the fact that many new buildings are completely devoid of asbestos, and this business will eventually have a in life when no more buildings need to have asbestos removed.

As it relates to opportunities, asbestos removal services can expand by simply acquiring additional vehicles, hiring additional employees, and obtaining ongoing contracts with government entities for the removal of asbestos within government buildings. One of the other ways of these businesses frequently grow is to acquire third-party companies that render substantially similar services. Many financial institutions are willing to extend business loans and lines of credit in order to ensure that these businesses can expand rapidly in order to provide a substantial number of services to the general public.

For threats, there’s really nothing that would impact the way that these companies do business on an ongoing basis given the regulatory changes that require that asbestos is removed from certain buildings. Again, the most significant threat faced by an asbestos removal service is the fact that these businesses do carry significant amount of ongoing liability as it relates to their day-to-day operations. Also, the expected at life of these businesses will be in about 20 to 25 years given all new buildings do not contain any level of asbestos whatsoever. As such, anyone that is getting into this business for a substantial period of time will need to have an exit strategy in place in order to ensure that they can either provide different services to the general public or have simply made enough money to cover all the startup expenses.

Trucking Company Business Loans

Trucking company business loans are moderately easy to obtain given that a substantial amount of the capital that is being sought is going to be specifically used for the acquisition of trucks and trailers. Given the ongoing demand for interstate and intrastate trucking services, most financial institutions are willing to extend substantial amounts of credit – either in the form of a business loan or a line of credit – in order to commence revenue-generating operations. One of the nice things about a trucking company is that they are usually able to generate revenues immediately given that these businesses can partner with freight brokerages that will provide them with the ongoing orders for merchandise transportation.

This is a very important thing to note within any documentation that is going to be presented to a financial institution given that they want to see that the business will be producing income very quickly from the onset of operations. One of the key things to also explain to a loan officer is that almost 90% or more of the capital needed will be used specifically for the acquisition of vehicles, trucks, trailers, and equipment that is normally used in conjunction with the rendering of trucking services. At the time of this writing, most trucking companies charge somewhere between $1.90 to two dollars per mile for long-haul merchandise transportation services. One of the things it also needs to be shown to a financial institution is the fact that a economic recession only has a modest impact on a short-haul or long-haul trucking companies ability to generate revenues. This is primarily due to the fact that many businesses are immune from negative changes in the economy, and they’re going to continue to need to have their goods and wares transported from one location to another regardless of whether or not there is economic prosperity or an economic recession.

A business plan specific for a trucking company is also going to need to be provided given that was all financial institutions require this type of documentation for any business loan that is over $10,000 to $50,000 – depending on the financial institution. This business plan needs to have an overview of the services that will be rendered to the general public and business public while concurrently showcasing the anticipated revenues, operating expenses, profits, cash flow, and balance sheet. For many entrepreneurs, the development of a trucking company business plan is typically the most difficult aspect of obtaining a business loan given that this is a very large-scale document that needs to be properly produced and shown to either an individual loan officer or a lending committee. For anyone is having trouble developing this type of documentation, many certified public accountants as well as qualified business plan writers are able to provide this service for a moderate fee. Generally, the fee for developing a business plan specific for trucking company ranges anywhere from $600 to $2000 depending on how in-depth the lending institution wants the document.

A modest amount of information regarding how the trucking company will market its services to the general public should be included as well. However, as discussed earlier – most trucking companies and related merchandise transportation firms typically are able to generate revenues by establishing ongoing relationships with freight brokerages as well as companies that have ongoing trucking needs. Given the complexity of merchandise transportation, many companies almost always outsource their needs to third parties given the complexity of hiring direct employees to render trucking company services.

In lieu of obtaining a business loan for the development of a new trucking company, many entrepreneurs will use specialty leasing programs instead of buying their trucks out right. In many cases, this can be beneficial given that there is no need to have a very large undertaking as a relates to the monthly pay down of a loan. However, leasing is very much akin to renting and very little equity in fact no equity is produced from the monthly payments that are made to a leasing company. When he be specific for a truck is undertaken, a interest rate is applied to the depreciation of the truck over a specific period of time. As such, it is wholly up to the entrepreneur to determine whether or not they want to build equity in a depreciable asset or if they want to simply maximize their profits and keep their balance sheets clean by leasing.

As time progresses, we are to continually add new information to this website as it relates specifically to financing for merchandise transportation and trucking businesses. As this is one of the largest industries in the United States, trucking companies generate in excess of $500 billion a year of revenue, this is one of the key topics that we’re going to discuss as many people have asked us for it.

Business Loans and Private Investors

Today, we’re going to discuss the difference between a business loan and an equity investment from a private investor. Many people make the mistake that private investors will generally provide a business loan for the development or expansion of a new business. However, most private investors are seeking to a choir a percentage of a business in order to receive dividends and capital appreciation from the stock as the business grows. The risks that are associated with the business loan as well as the moderate interest rates that are normally associated with this type of investment are geared far more towards financial institutions, lenders, and banks. Credit unions are also an excellent source of small business loans as it these groups are funded almost exclusively by their member base. A private investor is going to want at least 20% to 50% (sometimes more) in exchange for the capital needed in order to launch business operations. Many private investors could simply invest in quality blue chip stocks or ETF funds in lieu of putting their money in a high risk small business. As such, and with limited exceptions – most people that work the private investors can expect to sell a certain portion of their business in exchange for the money needed.

Conversely, a business loan is a specific term credit facility that is granted by a bank that requires monthly payments of principal and interest are made until the loan is completely repaid. Business loans, mortgages, car loans, and similar financial instruments all follow pretty much the same method of loan is granted and then monthly payments are paid back over a certain specific term and with a specific interest rate. If an entrepreneur does not want to give up a significant portion of their business than they can turn to using a business loan. Often, many entrepreneurs will stay away from using a business loan if they have had significant issues with their credit, or if they do not have collateral, or they are operating a business that is not to produce revenue for a significant period of time.

For instance, a technology business is not necessarily a very good candidate for a business loan given that it can take two years to five years before revenue generation occurs. Almost all financial institutions want to see that revenue generation will occur within six months and they will begin receiving repayment of the principle very quickly. As such, as it relates to specialized businesses – like technology companies – business loans are generally reserved specifically for companies that are already in operation, per our producing revenue, and can support a significant financial obligation.

One of the key things to know when working with a private investor is how much control it they want of the business. For much wealthier angel investors, these individuals typically are hands off of the most part. However some angel investors are tremendously more hands-on and want to have a say as it relates to the day-to-day operations of the business. This is something that we will continue to touch upon as it relates to business lending, investments for small business, and related information regarding business development and expansion.

On a final note, anyone that is working with a private investor should retain an attorney to make sure that a proper contract is written when working with these individuals or groups. This is primarily due to the fact that during a dispute – a properly written contract can assist the entrepreneur with ensuring that the terms were clearly spelled out at the time of the investor was made. There have been numerous instances, lawsuits, and settlements where the terms of an investment were made in a more offhand manner and have cause significant issues as it relates to the capital structure of the business. As always, having a properly qualified attorney as well as a certified public accountant working with your business can be an invaluable source of information and assistance as you progress through business operations.

Dental Practice Business Loans

While no one likes going to the dentist, these businesses are able to provide a very important service to the general public. Dental practice business loans are very easy to obtain given that the practitioner is a licensed medical professional who can receive their payments not only through patience but also from publicly funded health systems and private insurance.

Unlike most other types of business loans, can carry a much higher loan to value percentage given the extensive economic stability of the revenues produced by a dentist. In fact, there are some specialty lenders out there that will provide nearly 100% of the financing necessary in order to establish a new dental practice or acquire an existing one from a practitioner. Within any documentation that is going to be provided to a financial institution, a full list of the equipment that is going to purchase with the funding should be provided. This includes an overview of dental equipment, chairs, surgical tools, x-ray machines, computers, dental practice software, and other assets that are normally purchased in conjunction with the development of a dental practice. Also, a financial institution, bank, or lender is going to want to see the resume of the dentist in order to ensure they have graduated from an accredited dental school and are properly licensed in the state in which the practice is going to be located. These are all pretty straightforward pieces of documentation to provide to a financial institution. Generally, the prior two years of tax returns from the dentist is also going to be required as part of the overall loan package.

A business plan specific for a dental practice may also need to be included especially if the dentist is seeking a small business administration loan or conventional business loan. This business plan should feature a five-year financial statement that includes a profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page. A substantial portion of this business plan should have information regarding the demographics of the target market.

This generally includes taking a look at household income, population density, percentage of people are covered through dental insurance, and the growth of the population over a tenure.. This is going to be one of the common things that a dentist needs to be aware of as they expand their practice within any specific market. One of the other components that is going to be needed within the business plan is a pretty large scale marketing plan that showcases how the dentist will specifically differentiate themselves from other practitioners in the market. Given that in any market there are usually a number of dentist in practice – both as solo practitioners as well as group practices – it is important to have a high-impact marketing campaign that will ensure that people are going to come to the dentist on a yearly basis for their tooth care needs.

One of the key things to discuss with any financial institution or loan officer when seeking a dental practice business loan is to make sure that an overview of the cash flow is provided as well. As with most healthcare related businesses, there is usually a 60 to 120 day timebframe from which services are rendered to which the dental practitioner receives their payment. This is due to the fact that there is a  complicated bureaucracy as it relates to processing medical claims. As such, keeping a close eye on cash flow is one of the be aware of when they launch business operations. In some cases, much like medical practices, a dentist will also take out a working capital line of credit that is secured by their accounts receivables. There are a number of companies out there that will factor these invoices, but this is a very expensive form of financing especially for a medically focused business that is almost guaranteed to receive these payments. A medical billing company can be hired to assist a dentist with managing the complicated cash flow issues that occur on a monthly basis.

As with any type of financial undertaking, a certified public accountant should be retained in order to make sure that the dentist isn’t getting over their head when taking out a large loan in order to develop or expand a new practice. This CPA can also be instrumental as it relates to ensuring that the documentation that needs to be seen by the financial institution is properly prepared. This is especially important as a relates to any prior your tax returns that the bank is going to request as part of the overall lending package.

Overall, obtaining a dental practice business loan is very straightforward and can be obtained very easily and in any economic climate. The ongoing demand for these services ensures that dental practices can continue to satisfy debt obligations even during times of economic recession. Additionally, if the dental practice does not work out then the dentist can find a job at a hospital or group dental practice that will allow them to continue to repay their debt obligation even if the business does not go as planned.

Barber Shop Business Loans

In any economic climate, someone is going to need a haircut. As such, barbershops are almost always able to remain profitable and cash flow positive in any economic climate. Obtaining a business loan for a barber shop is a pretty straightforward process given that not too much equipment or capital is needed in order to launch this type of business. Of course, unless the individual entrepreneur is looking to establish a very large scale barber shop from the onset of operations – most barbershops are able to launch their revenue-generating operations with about $25,000 to $100,000 of capital. For an entrepreneur that is seeking a business loan for a barbershop the recommended down payment is going to be about 20% of the total capital required in order to commence revenue-generating operations. One of the nice things about these businesses is that they generate high gross margins  from their services, they are nearly immune from negative changes in the economy, and they can produce income that can easily satisfy any underlying debt obligation.

When developing a business plan that is appropriate for a barber shop, especially one that is geared for a business loan – a full list of the furniture, fixtures, equipment, inventory for almost all business loans exceed $10,000, a business loan is going to be required. This business plan should have a three-year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and other financial metrics are common to a business plan specific for a debt facility.

If an individual who is seeking a barber shop business loan does not know how to develop a business plan then we recommend that you speak with a certified public accountant or properly qualified business plan writer to assist in this process. This can be somewhat of a difficult undertaking given that these documents typically range anywhere from 25 pages to 40 pages depending on the requirements of the lender.

One of the key things the lender is going to want to see when applying for a barber shop business loan is that they want to make sure that a substantial portion of the capital they are lending is collateralized. Again, it is very important that the documentation provided to a lender clearly showcases what equipment is going to be purchased with the financing. The financial institution may also request the specific vendors from which the equipment is going be purchased in order to make sure that the money is going where the entrepreneur says it’s going.

In some cases, a barbershop business loan may actually take the form of a working capital line of credit. This is primarily due to the fact that barbershops have moderate to moderately low operating expenses, and they typically do not need all the money that they need upfront in order to commence revenue-generating operations. As such, some entrepreneurs will take to using a line of credit to the other not paying a substantial amount of interest on a large capital commitment and only paying interest on the funds that are drawn down as needed. Of course, this is only a determination that can be appropriately made by the individual entrepreneur, their business advisors, as well as their certified public accountant. In some of the new articles that we will be providing over the next few months, we’re going to touch on what types of businesses typically fare better when using a business loan rather than a working capital line of credit.

When applying for a barber shop business loan, the entrepreneur should have their tax returns for the last three years ready to be shown to the bank as well. These days, most financial situations, banks, and related lenders want to see substantial amount of documentation before the issue a business loan. This is primarily due to the fact that the housing and credit crisis that started in 2008 and ended in 2011 has caused these businesses to want significant documentation in order to keep their loan losses to a minimum.

Barber shops also make very good candidates for small business administration loans. The SBA is very keen to provide guarantees for this type of financing given that barbershops are always in demand, providing number of jobs to the community, and can be readily expanded any time. The high gross margin generated from haircuts, hairbstyling, and related services is almost always enough to cover a monthly debt obligation to a financial institution.

Overall, obtaining a business loan specific for a barbershop is a pretty easy process. This is something that only a qualified barber can do, and the moderately high barriers to entry – primarily due to the license and educational requirements of the barber – ensure the competition is kept moderate in any given market.

Business Loans for Accounting Firms

Accounting firms are very popular businesses to start among people that are looking to provide bookkeeping, tax preparation, and auditing services to the general public. Business loans for accounting firms are generally easy to obtain. Most importantly, many accounting firms are able to generate extremely high gross margins from their services and these revenues are immune from negative changes in the economy. In any economic climate, people are going to continue to need tax preparation services while concurrently having clear and accurate books. This is especially true among small business owners that do not necessarily have the time to complete all the proper accounting on a daily basis. As such, accounting services are very good businesses from economic stability standpoint. They are highly scalable as associates can be quickly hired in order to render a greater number of services to the general public as well as small businesses.

The most common type of financing to use used for a development of a new accounting firm is usually a working capital line of credit. The startup costs that are associated with the new accounting firm are typically low given that the small office and a modest amount of marketing capital is really all it takes in order to commence revenue-generating operations. As such, many accounting firms can even go profitable within the first month of operation provided that the owner is able to simply generate billable hours to create income greater than the very small monthly expenses of the business. It is rare that an accountant will start the firm as a large-scale operation from the onset of operations. In many cases, the only times when an accountant seeks a large-scale business loan is that they are acquiring a practice from a third-party certified public accountant. In these cases, a much more complicated financial situation is provided given that the previous owners going to need to assist the new owner with transitioning the business. In many cases, the existing owner will also provide a certain level of seller financing to the buyer so that they are able to have a smaller traditional business loan when acquiring this type of business.

Given that many accountants are familiar with the day-to-day operations of these types of businesses, a business plan specific for this type of practice is usually pretty easy to put together for a financial institution. Most importantly, one of the key things to stress and any documentation that is going to go in front of a loan officer is that these businesses generate very high gross margins, they are immune from negative changes in the economy, and they can become profitable very quickly. The startup costs for a new accounting firm typically range anywhere from $10,000 to $50,000 depending on whether or not the individuals can have a receptionist or a number of staff bookkeepers from the Onset of operations.

Part of getting a business loan specific for accounting firm will also require the owner to provide a significant amount of information regarding the demographics within the local market. This examination should thoroughly focus on the number of small business owners that are within this market given that these are the primary users of local and regional accounting services. This information can be easily sourced from the US economic Census as well as the general U.S. Census. There are a few online resources that can assist in accounting with developing the demographic profiles that need to be shown to a loan officer when entertaining a business loan specific for an accounting firm.

In closing, professional practices are able to very quickly generate revenues and profits. As such, they almost always make very good candidates for business loans as well as lines of credit. One of the nice things that owning and operating accounting firms that they can usually sell finance as they progress through their expansion operations. This is something that we continue to touch upon as we develop this website and showcase information regarding how professional practices and related businesses can expand the revenues over the lifetime of their operation.