Tag Archives: business loans

Hard Money Arizona business loans: A Tale of Two Businesses

iStock_000002302749_Large (1)When it comes to Arizona hard money loans you take out for your business, consider carefully, whatever your pledging.

Sally Jones lives in a beautiful picturesque tourist town, where she owns and operates a restaurant.  Then the especially ponderous local city council demands Sally make some extensive cosmetic changes to the exterior of her restaurant, “to preserve the historic character” of the neighborhood they say. If she doesn’t make these changes, she will have to shutter her business right in the midst of peak tourist season.

She needs money yesterday. She’s heard about hard money does a quick cursory search online,  to find a “hard money provider,” and the one she finds offers her a merchant cash advance instead.  She doesn’t think much of it, applies, and the money quickly comes in. She makes the necessary cosmetic changes. Business goes well extremely well during tourist season.

However, the loan she took out was paid back with 40% of all her profits.  She breathes a sigh of relief ‘at least the loan is paid off,’ she tells herself. But her margins are razor thin, and she has absolutely nothing in savings.

Should be okay right?  Well, then the city council demands that the siding on her restaurant isn’t the right color and she’ll have to change it. With absolutely nothing in savings, Sally has to take out another MCA loan to resolve the issue.

When it comes to hard money Arizona business loans, real hard money providers don’t use your income to secure their loans.

Across the street, Ralph was under similar threat from the city council.  He too needs fast money, he goes online and finds a hard money provider. His lender asks him to pledge his restaurant as collateral for the loan, and he’s a bit nervous about the interest payments.  Nevertheless, he goes ahead and makes the necessary changes. All the extra income he earns throughout tourist season, allows him to pay back the loan he took out and also enables him to save up the additional revenue.

So when the Birkenstock wearing, tofu munching city council demands that he also needs to change the color of the siding on his building he has some extra money on hand and he doesn’t need to take out another loan.

Risk less by seeking out real Arizona Hard Money Lenders.

The moral of this story is don’t put your businesses long-term income on the line to fix a short-term problem.  A real hard money deal allows you to leverage the equity you have your business’ real property as collateral. Yes, there’s some risk  and you’ll want to carefully consider whether or not you can pay back the loan. However, if the prospect of quickly paying back the loan is in sight than this type of deal offers little to no danger.

However some there are hard money providers online, that are merchant cash advance lenders.  These loans are especially dangerous as seen in the story above because they hamper your business’s ability to save income. Your business’s cash flow is eroded,  and slowly but surely another short-term problem comes up. Because of your MCA, you have little to no savings on hand, and you have to take out another loan.

So when it comes to alternative financing,  know precisely what you’re pledging. Be sure your hard money provider is the real deal.


Dennis Dahlber Broker Ri CEO Level 4 Funding LLC Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC 
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com
Dennis Dahlberg Broker/RI/CEO

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701 

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

A Borrower’s Guide to Arizona Business Loans

4page_img5-bigThere are several different types of loans suitable for businesses. Make sure you know the difference between each one before choosing your next Arizona business loans.

If you are running a business, you may find yourself in need of working capital, new equipment, or additional inventory.  A business loan specifically for one of these needs may be your best bet when it comes to continued success or hanging in there during the slow season. There are an assortment of Arizona business loans to choose from including bank loans, mezzanine financing, asset-based financing, invoice financing, microloans, business cash advances and cash flow loans.

  • Bank loan: Just as the name indicates, the originator of this type of loan is a bank.  The loan may or may not be a secured loan. A secured loan requires approved collateral.  If payments are not made, then the collateral will be kept and usually sold. An unsecured loan is, just as the name states, one in which there is no requirement to pledge collateral to obtain the loan.  Before making an unsecured loan, a bank may want to see the borrower’s business accounts, balance sheet and business plan, the principal’s background, and credit histories.

  • SBA Loans: The Small Business Administration is a government agency that offers guaranteed backed loans through your local bank.  The SBA (a) includes both a standard and express loan approval process.

  • Mezzanine finance: Mezzanine financing effectively secures a company’s debt on its equity, allowing the lender to claim part-ownership if the loan is not paid back in full and on time.  The loan is made with collateral. Dilution of the debtor’s equity occurs in a default situation.

  • Asset-Based Finance: If you are lacking the credit rating or track record to qualify, this type of financing has become a very popular choice.  The lender focuses on the borrower’s assets instead of their credit rating. Various assets are considered including the premises, plant, stock, or receivables.

  • Invoice Finance (factoring): An alternative to conventional financing, this type of lending requires the borrowing at a discounted amount of the invoices.  Once established, you will be able to obtain funds as soon as a new invoice is created. This may not be the best option for your business.  There may be a negative view by customers, and the lender will take ownership over the businesses’ invoices until the loan is paid.

  • Microloans: These Arizona business loans are for amounts of $100,000 or less.  Alternative lenders are more likely to make these types of loans than traditional banks.  If the traditional bank makes this type of loan, it is made based on the individual personal credit score than the business credit score.

Checking out Online Lenders

A number of online lenders have begun popping up on the World-Wide-Web.  Since 2014, $12 billion dollars have been made. Since 2000, non-bank online lenders have doubled their outstanding portfolio balance each year. Another option is crowdfunding—an option that allows businesses to raise capital from a wide variety of sources.

Personal guarantees are usually required if you own a certain percentage of the business.

If you are an owner of 20% or more of a business, most lenders will require a personal guarantee.  This allows the lender to collect on a Arizona business loan in the event of a default.  In most cases, as a personal guarantor, you will need a strong personal credit score. 


Dennis-Dahlberg-Mortgage-Broker_thum[1]_thumb_thumb_thumb_thumbDennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC 
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com
Dennis Dahlberg Broker/RI/CEO

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701 

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

The Differences between Unsecured vs.Secured Real Estate Lines of Credit

userThe main difference between unsecured and secured real estate lines of credit, comes down to how these loans are secured. Both loan types offer you a similar degree of flexibility and savings when compared to traditional financing. Evaluating the cost of both loan types can help you figure out which type of loan is right for your specific situation.

Your personal property provides security in the case secured lines of credit. Personal property can range from your primary residence to anything your business owns or some other form of collateral. With an unsecured line of credit, the loan isn’t secured by anything except for your lender’s estimation of your financial strength.

Now, why not just apply for a regular term mortgage to finance your next real-estate purchase?

With a term loan of any sort, a lump sum is given to you up front. No matter how much money you spend, you still need to make interest payments on the full loan amount. In addition, with term loans, you generally need to take a new loan out to finance each separate acquisition. A line of credit gives you far more flexibility. With a line of credit you only owe and pay interest on the amount you spend, and you don’t need to apply for a new loan with every new purchase of real-estate.

Both unsecured and secured real estate lines of credit offer flexibility and savings over standard term loans, but there are some differences in terms of costs.

A secured line of credit is taken out and is secured by some form of collateral, which offers your lender a degree of safety should you default. By mitigating risk, lenders can provide lower interest payments on secured lines and larger credit limits. Nevertheless, with a secured loan of any sort, credit line or term loan, your personal or businesses assets at risk.

With unsecured credit lines you the borrower don’t risk your personal property if you default.  However, lenders need to protect themselves in some way, and so unsecured lines offer lower credit limits and entail higher interest rates, Unsecured lines also come with far more stringent qualifications versus their secured counterparts.

With secured and unsecured real estate lines its important to evaluate the costs of each loan type. This can help you determine which type of loan is right for your specific situation.

A secured line of credit is an excellent idea if you are confident you can pay back whatever you spend, as you don’t want to lose your personal property in the course of expanding your business. Because secured lines offer lower interest payments and larger limits, it is probably best to employ a secured line of credit for making full offers on properties.

Unsecured lines may be more expensive, but they are an excellent way to reconcile differences between offers you want to make and the amount of cash you actually have on hand.  You should employ unsecured lines only when necessary due to the higher interest payments involved.

In both cases having access to a credit line allows you to quickly close deals on investment properties. With a credit line, you don’t need to wait on a lender to make a full offer, which can give you an edge over competing buyers who might need to wait on financing. In addition, credit lines can offer significant long-term savings over term loans because only pay back and pay interest on the amount that you spend.

As with any type of financing, consider the costs, the risks and the benefits of each type of credit line to figure out which one is right for your specific situation.

 Dennis Dahlberg Mortgage Broker[3][2][2][2]Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC 
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com
Dennis Dahlberg Broker/RI/CEO

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701 

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

How to Evaluate Hard Money Lenders

Selecting hard money lenders is very much like finding any other service provider to work with. The success of your loan and business relationship relies on your due diligence.

It can be very easy to get nervous when you are looking for a lender of any type. After all, you are going to ask this person or institution for money and that just makes most people uncomfortable and nervous. But the key to a successful search for conventional lenders or hard money lenders is remembering that you are their customer and that they are in business to offer you a service. Even if you are seeking a private lender because you have been rejected by a traditional bank, do not rush to accept the first loan offer that you get.

Start your search in the same manner that most of the world uses to find anything, the Internet. Does the lender have a legitimate website? Some websites are simply portals which are gathering information and then sending it off to potential lenders. This is not what you are looking for. A legitimate private lender will have a professional site which will provide you with contact information, general information about the lender, information about the type and size of the loans that they offer and their criteria for lending.

Once you have compiled a list of hard money lenders that you would like to speak to, take an additional step and check them out further. Search to see if they have any litigation pending against them or if there are issues pending with any investors which they might have. In some cases you can also learn what other borrowers have said by doing a google search of each lender. There are numerous sites where consumers report poor service or poor business practices by just about any service provider that you can think of.

As long as you have not uncovered any red flags, then contact each lender to set up an appointment to speak in person or a call if they are not local. At this time it is a good idea to have prepared a list of questions to ask each lender. These answers will allow you to compare each lender on the same criteria. You might ask what type of loans they most often fund or what dollar amount is their average loan. You will also want to inquire about their time frame for funding the request and their criteria for approval of the loan request.

Once you have gathered all of your information, you will want to calculate the total cost of each loan offer. Be sure to consider loan origination or processing fees and any other fees such as an early repayment penalty. This total cost should be your main criteria for selecting any hard money lenders. If you have two lenders who’s offers are the same then you can use more personal characteristics in your decision making process such as who you think will be the easiest to work with or who is located closer for more easy access. But be mindful of cost and the fact that you are going to be the customer.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
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About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

How to Find the Right Commercial Real Estate Loans Online

Level 4 Funding explains simple ways to find the right commercial real estate loans… all from your computer. Read on to find out the key ways to choose the right online lender.)

It’s easier than ever to obtain things today. No more running out to the store for clothing, furniture, even groceries can be delivered right to your door! Practically anything you need or want is available at your fingertips and is just a mouse click away! Even when it comes to finding commercial real estate loans, you can turn to the trusty Internet to help you find exactly what you need.

While there are so many options and ways to obtain commercial real estate loans, the process can be started and even finished online. Via the Internet you can do a great deal of research about various loan types, the specialty type that might be best for your business, and even the application process. It can all be done online! However, it’s important to note that oftentimes, these virtual lending outlets may come with a higher interest rate to account for the risk factor. However, getting a loan without leaving your home is just so convenient, that the higher interest rate might just be worth it!

When you are looking for loans online, start at an online marketplace lender. These lenders allow borrowers the opportunity to obtain loans through online platforms. They are also more lenient for those that have less than desirable credit scores, dings on their credit history or who are just starting to establish a credit history for their business. The entire process happens online, so from the sourcing, underwriting, and services to the loan, then through the Internet, your loan is marketed to investors to receive funding. It’s fair to say that most online marketplace lenders are in the realm of short-term loans. However, that’s not to rule out obtaining long-term loans online, its just not as common.

Consider the many benefits of using an online marketplace lender.

Trying to get a loan in pajamas has to be the number one benefit! All kidding aside, the convenience factor is a big plus. However, the online marketplace does offer additional advantages for borrowers. The process is very smooth and efficient. So from the time you apply to the time you get approved (and get cash in hand) is quick and easy! It’s also ideal for high-risk borrowers that have previously been rejected by conventional lenders. Whether or not your loan is approved, there is not a long waiting period in which to find out.

While there are some benefits, there are also some drawbacks when it comes to obtaining commercial real estate loans via the Internet.

It’s important to note that these types of loans may be considered higher risk to lenders. And to ensure they cover their assets, borrowers will generally have to deal with higher interest rates to compensate for lenders’ risk. In addition to higher interest rates, there may be some costs, fees and other monies owned so it’s important to read all the fine print. If you have questions, see if the company has a live chat option or put in a call. You never want to go with a company that is unreachable. There are pros and cons to all things, so as long as you weigh your options and the goods outweigh the bads, finding a loan via the online marketplace can be a win-win solution!

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
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About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

How to Finding Reputable Hard Money Lenders Can Benefit You

Do you wish you could find a trusted hard money lenders to help you obtain the funding you need to take your business to the next level? Level 4 Funding knows that when you need cash fast, not all lenders are created equal — here’s how to find the credible ones.

If you need cash and you need it fast, hard money lenders are your people — they can help you get the loan you need. This is beneficial for real estate investors to small business owners. Unfortunately, some of these lenders aren’t as professional and ethical as you would hope. It’s important to find a lender you can trust. So here are a few things to remember:

Getting a handle on exactly what hard money loans are is the first step. These loans can be defined as short-term loans in which you can get cash fairly quickly after the approval process — this can sometimes even be the same day as application approval. Next, when you are in search of a lender, it’s a good idea to look for one that specializes in your company’s field of has experience working with a similar type of company as your own. Always make sure the lender is licensed — and that he can prove it. It’s better to be safe than sorry. Take your time when selecting hard money lenders – meet with a few until you get a good feel for one that seems like they really believe in your dream and can help you obtain it via a loan.

When you meet with lenders, be sure to ask a lot of questions — including that what types of fees are associated with the loan, as well as terms and rates. Sometimes hidden fees can creep into the documentation, so be sure to review if carefully and even have a lawyer take a look as well.

Find out as much as you can about these loans — and these lenders — prior to meeting.

Research local hard money lenders in your area to make sure you find a reputable one to work with. Remember, it’s almost as if you are interviewing them for a position so there is no need to feel intimidated and you should take the upper hand by asking questions about their areas of expertise, their current and past project portfolio and anything else you want to ask that you feel would help you make an educated decision as to whether or not this is the right lender to work with.

Once you do find the right lender – it’s important to treat the relationship as a partnership.

So meet them halfway in the process, meaning find out what they need from you, in terms of financial documents, and more to make the application process as smooth as possible. Come prepared with your business plans, current credit report, any collateral you are prepared to put up to secure the loan, and other business or personal finance information. Remember that he is there to help you achieve your business dreams, but you’ll need to do some work too. When you work together and find out as much as possible about how you can obtain approval, you’ll be well on your way to your business’ next phase!

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
clip_image002clip_image004clip_image006clip_image008

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Business Loans: Things borrowers should consider.

4page_img8-bigThere are many different types of business loans, but every borrower should understand whether their loan is secured or unsecured and how their loan is structured.

Every business owner should understand whether their loan is a secured or an unsecured loan. Unsecured loans are not secured by collateral. Collateral can be a borrower’s personal property, real estate or equipment. Most business owners won’t qualify for an unsecured loan. Unsecured loans require exceptional credit and an extensive track record of financial success. Therefore most business loans will be secured by collateral. The borrower must pledge some property up front in order to cover the cost of the loan in case of default. Secured loans are common when a lender perceives risk, when a loan is made on a long term basis or if a loan is used for new investments like equipment or real estate.

Every business owner should also understand how their loan is structured. Most commercial loans are issued as “balloon loans.” During the course of these loans a degree of principle may or may not be paid down, but once the loan matures the remaining balance in terms of principle and interest must be paid back. Some lenders will even allow borrowers to offset interest payments, but that means a higher amount of money will be needed once the loan expires. Prior to taking on a business loan, the borrower should understand to what extent their monthly payments will apply to the principle of the loan and whether these payments will pay for the full loan amount once it matures.

The most common type of business loan is a business line of credit. These loans don’t usually require collateral and are rarely structured around balloon payments.

Credit lines are flexible short term loans and help many business owners cover their expenses should their cash flow stall. With a business line of credit a lender extends a fixed amount to the borrower. The borrower then makes withdraws from these funds in order to cover unforeseen expenses or routine costs. The advantage with a business line of credit is that the borrower only pays interest on the amount of money they actually withdraw instead of paying interest on the full loan amount. Interest is usually paid every month and the principle is paid off at the borrower’s convenience. While a line of credit is a flexible arrangement, these loans are intended to purchase inventory or to help a business cover basic expenses. A line of credit should not be used to make a long term investment.

If a business owner is worried about the risk of a balloon payment type business loan, they may seek an installment loan in order to make long term investments.

An installment loan can take on many forms. However an installment loan always entails a fixed monthly payment that covers both the principle and interest of the loan. This helps borrowers avoid the looming deadline of a massive balloon payment. The terms of an installment loan always correlate to its use. A short term installment loan (or a business cycle loan); can have terms of four months to seven years. Installment loans for longer term investments, like equipment or real estate, usually can come with terms up to 21 years. Most importantly installment loans are fully amortizing, making less risky for most business owners.

Business owners should be aware of the differences between a secured and unsecured loan and know whether or not their loan is fully amortizing. To avoid the risk of balloon payment business owners should seek out a line of credit or a simple installment loan in order to cover routine costs or make long term investments.

Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
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About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Business Loan

1page_img2-bigTraditional banks reject approximately 80 percent of those small business owners who apply for a business loan. Fortunately, there are alternatives for businesses in need of an influx of capital and one of those is a private hard money lender.

Since the Great Recession, getting a small business loan from a traditional bank has been akin to winning the lottery. Well, maybe not quite that remote of a possibility, but for those just entering business, it can definitely feel hard at best and near impossible in some instances. In addition to requiring adequate collateral, you also need a great credit score often above 700, a good cash flow and adequate capital to pay off the loan. Many potential borrowers wonder to themselves, If I had all that, I wouldn’t need a loan! But such is the constraints of our time.

Approximately 20 percent of new businesses survive their first year in business. After five years, the rate of both failure and success stands equal at 50 percent. The number one reason businesses fail is due to lack of initial funding and under-capitalization. This is due to either underestimating costs, overestimating the amount of initial sales with their product or service, or deciding to take the plunge regardless of the available capital, or lack thereof. Because of the inherent risk to lenders, many banks have very stringent underwriting rules when lending to small businesses in order to protect themselves. The irony, of course, is that if these small businesses had more capital, they would have a better chance at succeeding.

For those of you who have been in the small business demise group, its best to remember that every failure improves your next chance at success. Michael Jordan, NBA basketball MVP said it well. “I’ve missed more than 9,000 shots in my career. I’ve lost almost 300 games. 26 times I’ve been trusted to take the game winning shot and missed. I’ve failed over and over and over again in my life and that is why I succeed.”

So Where Does One Obtain a Small Business Loan?

If you have adequate collateral in your business or even in your home, a hard money lender may be the right option for you. These short term business loans can get you up and running, provide the capital you need for expansion, or get you through the low-period of a seasonal business until the customers start rolling in again. These short-term loans are based on your hard-asset so those that may have had some credit issues in the past still have a good chance of qualifying. And the time to funding is much shorter than traditional bank loans, getting you the capital you need in less than a week.

At Level 4 Funding, we work with hundreds of private hard money lenders many of which prefer to invest in small businesses. We offer terms from 3 to 60 months. Call us today for a no-obligation quote.

Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
clip_image002clip_image004clip_image006clip_image008
About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

How a Successful Business Can Benefit from a Business Loan

businessmanEven a successful business sometimes need to find extra financial assistance. There are many good reasons for a business to consider a business loan when in a time of need.

Building your credit score isn’t always easy, but that is where a business loan can help. Everything business strives for a good credit score for many different reasons. If you are in a good place with your finances and business, you want to keep up the momentum by building your credit score. That is because making your payments on time or even early and paying the loan back in full will really boost your credit score.

When your business needs to make a large purchase, it is a wise idea to look into a business loan. Sometimes it is difficult to take a big chunk of money from your cash flow to buy the equipment or other necessities for your business. This way, your cash flow isn’t affected and you will still have the funds to purchase what your business needs. Plus, making payments over time instead of having to make a purchase all at once helps your business manage your finances.

Speaking of cash flow, sometimes your business will boom during certain seasons. It can be difficult to spread that seasonal revenue across the entire year. When your business hits a seasonal slump, you can have peace of mind knowing that you can get extra financial help when you need it, no matter what time of year.

A business loan is also helpful when a successful business decides to expand

Expanding your business is exciting and a good thing, but it can also add up and be an expensive thing. There are lots of things that are needed when expanding your business like more staff and personal, a new space and maybe even more equipment and inventory. All of this could get really expensive and your business may need help upfront to get the new operation going. This is another way a business loan can lend a helping hand to your business. If you are thinking of expanding your business, then take this option into consideration.

There are many ways to benefit from a business loan, but make sure to pick the right one for your business

When it comes to getting extra financial help for your business, there are many options that you can choose from. You want to always do your research and compare your options to know you are choosing the right one for your business. The Small Business Administration is a popular option among many businesses looking for financial assistance. Every business is different along with their needs so there are various types of options to choose from.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
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About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

How to Raise Your Business Credit Score to Apply for a Business Loan

credit score at level 4 funding hard money loanWhen you apply for a business loan, often times your business credit score plays a role in approval. But do not stress, there are plenty of things that you can do to boost your business credit score to avoid application denial.

Every business, small or old, big or small, strives for a strong business credit profile. That is because your business credit report can say a lot about your business. Also, it will help avoid having to pay higher interest rates and additional fees when applying for any business loan.

One of the easiest ways to boost your credit score is to make payments on time to creditors. But to boost it even more, try to make payments early. It is reported that a perfect credit score is often assigned to borrowers who make their payments not only on time, but early. The sooner you start doing this, the better because the longer you have a good credit history, the better. Don’t be afraid to use your credit cards either! You want to use them to help increase your business credit score. Just make sure to never max them out!

Of course, public records are going to come into play when raising your business credit score and obtaining a business loan. Anything that might be filed like judgements, liens and bankruptcies are public record and going to be a factor when it comes to approval and when it comes to your credit score. These things could potentially have a negative impact on your credit score and application, especially if anything financially wrong with your business is recorded.

There are benefits to obtaining a business loan from certain lenders, so be picky!

You may not be aware of this, but not all lenders report to credit bureaus. And the best way to boost your credit score is to make sure that all of your early payments are being recognized by the credit bureaus. Since you want to build business credit, the right way to do this is by working with lenders who will report everything to the credit bureaus. Before working with any lender, be up front and ask them before going forward with the process.

Remember, for a more successful chance of getting approved for a business loan, have good business credit!

It is true that your business credit score doesn’t always play a part in obtaining a business loan. But sometimes it will make your chances of approval better, plus it can also give you other benefits. When a lender looks at your credit score and is impressed, they could potentially offer you not only approval for extra finances, but also lower interest rates. If you have history of making payments early, then lenders could also offer you better terms. As long as you are using a lender that reports to the credit bureaus, your hard work keeping your credit score high with making payments early and showing consistent financial responsibly, then you are going to help maintain or build your business credit score.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
clip_image002clip_image004clip_image006clip_image008
About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage