How to get a credit report free Harrisonburg

Fewer lenders are financing the businesses, and those that do so are being increasingly picky about whom they will bankroll. That has left many how to get a credit report free Harrisonburg borrowers turning to other sources of financing. More people are seeking out loans from the Small Business Administration, which are partially guaranteed by the government, making them less risky -- though some lenders participating in the program are tightening their lending criteria as well. And some would-be franchisees are even tapping retirement funds. The shakeout is partly due to the mounting defaults by franchisees who got in during good times, perhaps how to get a credit report free Harrisonburg short-changed themselves on working capital and then, when the economy faltered, couldn't cover their loans. "Lenders just don't know what the future will bring," says Robert Snelling, president of Honor Capital Group of Plano, Texas, a financial intermediary between franchisees and financial institutions. Cautious lenders are less likely to throw how to get a credit report free Harrisonburg money at newer franchises these days. Banks are favoring those with brand names, businesses that aren't seasonal, and, therefore, don't have highly fluctuating cash flow, as well as those that have a solid core of long-term operators. Ventures with only a smattering of how to get a credit report free Harrisonburg locations are being bypassed, in part because they lack proof that they can do well in all types of areas or fluctuating economic climates. the free credit report For would-be entrepreneurs who do get financing, unsecured loans are relatively rare.

Even those with good credit may have to crack their retirement nest eggs to come up with enough cash to make a deal work. "The first thing we want to know is, 'How much cash do you have? Any outside income coming in?' " says Rick Anderson, general manager of Franchise Finance of Little Rock, Ark., a company that originates loans and leases for the franchise industry. Anderson says if borrowers have substantial cash, "we'how to get a credit report free Harrisonburg d recommend they put more money into the deal -- maybe 40% to 50%, and we'd finance it conventionally." If they aren't flush, he says, they still may have to contribute at least 20% along with collateral how to get a credit report free Harrisonburg -- perhaps just enough from a retirement account to cover the down payment to qualify for an SBA loan. kentucky free credit report

Brian Colburn, managing director of franchise finance at Butler Capital Corp., a commercial lender in Hunt Valley, Md., says that how to get a credit report free Harrisonburg the "only bank loans I see being made to new franchisees are if how to get a credit report free Harrisonburg a person has established other relationships with a banker, or has previous experience, or is a local figure in how to get a credit report free Harrisonburg the marketplace. The average Joe, 99% of the time the bank will turn how to get a credit report free Harrisonburg him over to an SBA" office.

Indeed, with banks becoming more tight-fisted, the SBA is becoming the place more would-be franchisees are turning to. "It's how to get a credit report free Harrisonburg what the SBA was created for, to provide access to capital for small businesses who can't get it through conventional means," says Christine Reilly, head of small-business lending at CIT Group Inc., a New York-based finance company. Reilly, CIT has recently "made some changes" to its underwriting criteria for franchising in order to reduce its risk exposure. The standard SBA loan for franchisees is known as the 7(a), which is issued by a bank or other qualified lender, and partly guaranteed against default by the government. Because of how to get a credit report free Harrisonburg that backing, such loans are seen as relatively low-risk. how to get free credit report SBA loans include those for short-term working capital and equipment, which often have a five- to six-year maturity; and real-estate loans, which can run for 20 years or more. Despite the current tight-money situation, "we expect to have adequate funding to meet demand for fiscal '09," says James Hammersley, director of the agency's loan-programs division. About 10% of all SBA loans go to franchisees, with the size running between $250,000 and $500,000, although the maximum is $2 million. Most of that money is earmarked for franchise entry fees, improvements or working capital.