Motel Finance & Gas Station Financing to Business

In today’s world we see people running after money. The more they have the more they want. The recent trend which has been started is setting up of one’s own small business and later on expands it rather than working for a company and waiting for 10% increment every year. People now days believe to put their hard work not in others company but in their own. In a way it is a better preposition as you are your own boss and earn more than what you could have earned in your job. Business gives a person chance to explore different segments of industry and economy. Moreover doing business gives a lifetime experience to a person to face success-failure, hard time-good time, profits-losses and much more.

Talking about business over a job, the discussion starts from the basic and the physically foremost requirement to set up business and i.e capital which can be in the form of liquid money or land or property. It is not difficult to arrange finance these days. Many finance companies are established to provide finance to people who are willing to set their own business. The options people are looking to enter in are hospitality industry, import-export business, real estate, lube trade, owing a gas station etc. and each one of them requires huge capital. As they say “More investment- more profits” We say that there are abundance of finance companies all over the globe, but the question arises is they all good, reliable, transparent or flexible enough to provide you finance. For example You want gas station loans, then, is the company reliable that you will get your gas station financing from it or you want to open a motel and need a motel finance then, does that financing company flexible enough to provide you with motel financing. Many companies fool a person by not telling about the hidden charges of the agreement; they are not transparent about their terms and conditions. Also some finance companies do not provide finance to people entering into the high risk category of business.

So, one has to be careful while entering in the terms and conditions of finance company. Despite them claiming low interest charges they cover their cost through hidden charges and once you have signed the agreement, you are stuck. If you are trapped in the web of wrong financing company then the profits may take long time to show up and you may get disappointed. So it is very important to choose the right company. It’s not always the case that the company is hiding thing from you its sometime you who is not smart and alert enough to ask all the doubts you have. A person starting his or her business can be judged on the basis of the decision they make in their initial stage of starting their own company.

Thus it can be underlined that the initial phase of business which includes arranging finance is very crucial and important. Without this step things cannot start and a business person also keep in mind that higher the investment- the higher is the return. More the risk, more the profit.

Providing Loans-Financing Options To Business Is Being Difficult

Providing loans and financing options to budding entrepreneurs has become a rather risky business nowadays. Due to the high level of volatility in the markets, it has become almost inconceivable to anticipate the level of profit any business can make in a given period of time. One of the most prominent reasons behind this risk factor involved in financing these small-time entrepreneurs is the lack of proper amount of market research and analysis by the business houses.

But a quite convenient concept has come up, which is involved with the financing of businesses such as motel business, gas station business, liquor store business, etc. These are commonly known as SBAs (Small Business Administration financing). Motel business and gas station business aspirants can opt for these options to get started with their dream set ups.

Motel financing can be termed as an area which gets catered to only the most strictly chosen ones. The main cause behind this kind of behavior from the side of the financiers is that the level of jeopardy and risk is extremely high in the field of motel business. Although it is an undeniable fact that the level of profits earned through motel business is extremely high, but if the business is based on weak basics and research, then it has a tendency to go into a loss which would be hard to manage in future times.

To avoid these kinds of undesirable situations from arising, it is of utmost criticality that before purchasing any motel for your business, you go through the entire history of the motel and the various factors associated with the profitability of the motel in future times. Motel loans are hard to get and the case needs to be extremely strong for the motel finance to materialize. The valuation process of motels depends upon the difference and the proportion between certain significant factors such as the price of the motel and the annual revenue that it produces.

Apart from this ratio, another relationship which is vital in determining the profitability of the motel would be between the annual expenses and the annual revenue that the motel is generating. If the buyer and the financing institution is convinced by the profitability of the motel, then motel loans can be availed at a surprisingly low down payment of 20%.

Gas station financing is similarly tough and risky to finance. Over the years, this business has become so popular and frequent in many areas and due to this fact the level of competition is immense in this field. The profit margins of this business are quite low and it can be as low as mere 5% to 7% on each gallon of gas sold.

Due to this negatively steepening profit margin on gallons of gas, Its owners should opt for alternate sources of profit, such as convenience store near the gas station. After the profitability of the this business has been determined, its tax returns has to be analysed to make sure whether it is worth the investment or not. If everything is on a smooth platform, then the gas station financing can be done with a down payment of just 20%, which is similar to motel loans financing.

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Business Viability Of Motels Loans And Gas Stations Financing in USA

A Business grows with the passage of time. But for its growth in the long run, finance is needed. The money needed for its growth need not be necessarily invested by the owner of the business itself, but this money is lent by the financial institutions like banks on a loan basis. These banks have surplus money with them and provide loan to a venture subject to certain checks and controls. A bank before lending loan to a business has to guarantee that the business is able to generate enough money to pay back the loan.

Apart from this, there are other controls like environmental clearance and other financial, commercial and other related obligations that have to be cleared by the business owners, only then the banks can go ahead with the process.

 

Today we are here to discuss the business viability of Motels and Gas stations financing in USA and how their growth is being affected by lack of loaning from banks and SAB who are not liberal in entertaining loan applications. Banks have their own reasons for resorting to such a behavior. Motel Loans are a must needed oxygen supply for development of future Motel industry.

The rejection of Motel Loan applications is a cause of concern. Motels are located all over America on highways and are offer good relaxing and staying facilities for common tourists and that too at a cheaper price. The provide food, staying and parking facilities for vehicles and their owners. But the question is why the motels are not being promoted by the banks as they have done in the yester years. Banks are using the escape root when it comes to Motel finance.

First thing is competition faced by motels from hotels who have spread their reach to distant towns and highways and are offering services at a relatively lower price. The banks have taken note of this and are not too eager to extend loans to motels. Motels which are running under the flagships of big brands get a  referential treatment and their applications are accepted. But one need not feel despondent.

Motel financing is receiving help from a quarter of professionals and experts who can guide and help you in securing a loan provided you heed to their advice. One prominent loaning expert, Neil Advani has made his mark all over America and has lot of success stories to be credited with. Experts like him analyze the loan applications and give their feedback. This guidance has enabled a lot of business ventures to get favored by the banks. If they find a bid is going to be rejected straight away, they tell the same to the owner saving his time and resources. These financial experts are turning out to be messiah for these petitioners.

Gas Station Financing Become Competitive & Hard To Procure

Gas stations are considered to be profitable ventures but the truth is far from that and the fact that major gas companies are working at a margin as low as 5 to 7 percent per gallon, it becomes hard to see the profit. This is why gas station financing has become not only competitive but also hard to procure as well. So even if you are bent on getting a loan for your gas station cum convenience store, then you will have to make an earnest effort as the options are not as many as you would like. However, it is not that it is impossible to get gas station financing only if one proceeds methodically.

 

 

Firstly, the reason why financers would wish to stay clear of gas station financing is that the margins are getting lower every day but that is not the only reason. The fact is that gas stations are associated with much environmental risk and the tough environmental laws make it very difficult to convince the environmental agencies about the cleanliness of a site. This has led to very elaborate environmental monitoring requirements of the site in question which is expensive and time consuming and hampers the process. Moreover, it is difficult to demonstrate the profitability of a gas station as it is a cash business. However, one must always show that you intend to operate a convenience store as well because it can help in demonstrating the profitability also. Moreover, get all proper environmental documentation before applying for gas station financing.

 

Motel Loans

 

Motel loans are also in the category of gas stations when it comes to getting finances.Motel finance is becoming difficult because of the nature of the motel industry itself. Primarily, motels are establishments which are far away from cities and other mainstream areas and are generally situated in towns and villages. This makes them not so profitable in the books of the financers. Motel loans are usually given for those motels which are part of a national chain of motels or franchisees. Since not all motels are under a national franchisee, so it becomes difficult to get motel loans, especially from major organizations like banks. However, if you are still intent on getting motel finance for your venture, you can approach niche lenders and SBA loans. But you have to demonstrate the fact that you have a previous experience in the motel or hospitality industry, any partnership agreements, and that you have an able management plan for the business in question. Consult a motel financing expert to oversee all formalities and complete all formalities in a proper manner so that you are successful with your application.

Probabilities of securing motel finance

Motels square measure common sights and there square measure lots of individuals UN agency want to open a court thus on enter the motel loan. However, financer and banks don’t see that a lot of potential within the court trade which is why the amount of lenders which give court finance isn’t terribly high. Mainstream commercial banks square measure particularly hesitant to entertain prospective court house owners with motel finance needs, though’ there square measure some banks that do deal in court loans. This can be why niche lenders square measure approached for motel loans by prospective entrepreneurs within the court business.

The reasons for the apparent lack of recognition of court loans with lenders square measure several and most lenders have their suspicions and strange qualms once giving a court loan. This has created obtaining court loans a confusing and a not really easy task to accomplish. However, keeping some staple items in mind and finishing all formalities during a thorough and systematic manner will assist you create the cut. The first thing any bank or financer goes to check is that the property wherever the court is to be engineered and this is a crucial thought for any court loan. Any prospective court owner has to get the right valuation of the property done so motel financing is secured. Moreover, the property additionally plays a very important role in establishing the profitableness of the enterprise because the location of the court is a key issue. If your web site} is found during a distant site with none close route or road, it’s not going to be favored by the bank or loaner. This implies choosing the proper property is important for the business and for obtaining court loans. Moreover, banks like properties that square measure beneath the flagship of a well known national franchise and since most motels square measure freelance institutions, it complicates matters further for court finance candidates.

The other necessary issue to be thought-about is that any motel loan someone should shine that they have the proper variety of expertise within the court trade. This expertise should be incontestable in earnest as a result of it convinces lenders of the actual fact that the someone is capable of management and may run the business. Moreover, right presentation of the property of business and your management skills will increase your probabilities of securing motel finance. of these things is tough to handle by oneself and this can be why one should rent a court loan adviser UN agency has the proper credentials and background for the proper loan packaging and court finance presentation of your project.

Popularity of motel loans

The state of affairs in the motel industry is not looking promising and this is more than enough of a reason for the lenders who have always avoided such loans. But this does not mean that one can never get decent motel financing for their project. There is no dearth of lending agencies which specialize in motel financing but one has to make sure that they complete all the formalities properly. It is essential to choose a lender who has the understanding of motel business and all things concerned with this trade and is interested in providing the financing for your project.

There are quite a few reasons for the seeming reluctance of these financing organizations when it comes to funding gas stations and any prospective entrant into this business must gear up for the hassles associated with gas station financing. The basic issues with gas stations are that of the environmental risk and the environmental status of the site has to be ascertained. It is also important to note that when applying for a gas station financing scheme, be sure to state any sort of experience which is relevant to this business. Gas station financing is a matter of concern for anyone who wishes to acquire a property for opening a gas station and enter this business. However, getting gas station financing is not a cakewalk even though this business can be a profitable one. But given the recent trends in the oil industry and other regulations, the appeal of gas stations as a lucrative business has gone down and similarly many financers are wary of providing finances to gas station owners.

The reasons for the apparent decrease of popularity of motel loans with lenders are many and most lenders have their suspicions and strange qualms when giving a motel loan. This has made getting motel loans a confusing and a not so easy task to accomplish. However, keeping some basic things in mind and completing all formalities in a thorough and systematic manner can help you make the cut. Moreover, banks prefer properties which are under the flagship of a well known national franchise and since most motels are independent establishments, it complicates matters further for motel finance applicants.

Moreover, right presentation of the property of business and your management skills can increase your chances of securing motel finance. All these things can be difficult to handle by oneself and this is why one must hire a motel loan consultant who has the right credentials and background for the right loan packaging and motel financing presentation of your project.The reasons for the apparent decrease of popularity of motel loans with lenders are many and most lenders have their suspicions and strange qualms when giving a motel loan.

To get proper Gas station financing

Gas station financing is a matter of concern for anyone who wishes to acquire a property for opening a gas station and enter this business. However, getting gas station financing is not a cakewalk even though this business can be a profitable one. But given the recent trends in the oil industry and other regulations, the appeal of gas stations as a lucrative business has gone down and similarly many financers are wary of providing finances to gas station owners. There are some factors responsible for the present dearth of gas station financing. The most basic reason is that the global trends in the oil industry are going pretty rough at the moment and many oil companies are facing losses and things are not looking on the brighter side as of now. The other thing is that gas stations are associated with environmental concerns and given the stricter environmental policies that are prevalent presently much effort is required to convince the authorities of the cleanliness of any gas station sites. One has to get accredited evaluation of the site where the gas station is to be built and this is absolutely essential in order to get proper gas station financing. Moreover, relevant experience is another factor that improves the chances of getting gas station financing. One must hire a finance consultant with considerable expertise in Gas Station Financing to get a loan.

The other business where getting financing is difficult is the motel industry. Motel Loans are not easy to get and many deserving people do not get the required Motel financing for their project. Most banks and lenders are hesitant to entertain cases of motel loans for many reasons. Firstly, motels are not located in the biggest cities and generally belong to towns so their mainstream appeal is limited. The other thing that is considered by lenders is whether the motel is associated with a flagship brand or not and those which are can avail the motel loan much easily as compared to independent enterprises since it is easy to demonstrate profitability in case of flagged motels. Moreover, any lender would consider only those persons for motel finance who have had experience in running such establishments or in the motel industry. Proper property valuation and presentation of your project are very important in order to secure motel financing with ease but a motel loan is complicated and confusing. This is why one must consult a Motel finance consultant who can take care of all formalities, and who has experience in providing motel loans at attractive rates.

Gas stations are very profitable establishments

Anyone willing to buy a gas station and venture into this business has got to take a look at the financing options. Gas stations are very profitable establishments but they are not as popular with the banks and lending agencies as such. Most banks are not interested in providing loans to gas stations and convenience stores, and a lot of deserving people therefore do not get the funding. There are quite a few reasons for the seeming reluctance of these financing organizations when it comes to funding gas stations and any prospective entrant into this business must gear up for the hassles associated with gas station financing.

The most basic issues with gas stations is that of the environmental risk and concern that accompanies a gas station. Most lenders are wary of this fact and do not want to get involved in all this. Moreover, the environmental status of the site has to be ascertained because if a previous owner left it, then it cannot be known with certainty. The primary environmental risks include leakage, spilling and migration. Though spilling is not much common, given the new machinery etc., any lender would want to have the proper environmental evaluation of the property which can be costly and time consuming. Even troublesome is the fact that the cost of cleaning up a site may sometimes be higher than the property itself.

The other thing that irks most lenders is that it is a cash business and making sense of the cash flow is not as easy in this case which makes valuation and calculation of the revenue and profitability quite difficult in a way. Moreover, there are foreclosure issues with gas stations and convenience stores as banks don’t run gas stations in such situations. It is also important to note that when applying for a gas station financing scheme, be sure to state any sort of experience which is relevant to this business and to show that you have a good enough financial situation and clean credit history as these factors do play a role in deciding the outcome of any application.

However, if conventional financing is not coming your way, then one can opt for SBA finances as they are also quite popular and at par with the bank loans contrary to the popular belief. However, the environmental issues get the same consideration here also. The up side is that SBA loans cover up much more of the loan value than the conventional loans but the downside is that the process can be a lengthy one. Hence one must get proper advice and check all options before finalizing anything.

Gas Station Financing

Financing means, to get financial or monetary system for starting a business or expanding a business. Money factor is always included in the every business or every system in the world. Without money one cannot even think to take a start in the business of either kind. Besides this money is one of the five factors or five “M’s” of the management. Finances are the very important factors of a business. The more finances a business has, its infrastructure is as big. Gas Stations are increasing day by day all over the world. The importance of these Gas stations is very much in the lives of people. These types of stations not only provide gas for the home use or for hotel uses; rather they provide gas for the cars and the other vehicles which are running on the roads of the United States. Besides this they provide gas as a fuel for the cooking as well as to produce other materials in the factories or and fuel for the small scale industries. Banks of The United States of America is offering the Commercial Loans for gas stations under their section of Gas Station Financing. The bank does not provides loans only for these kind of business as the management of the bank have decided to offer loans for service station and c-store and for so many similar kind of businesses. These kind of financing are available for the acquisition or refinancing of the properties. In the yester years Gas Station Financings have become more difficult due to the dynamic conditions of the industry which are changing time to time or in the frequent times. These dynamic conditions included the strict agreement of the suppliers, and the so many other external factors which are affecting the respective industry. For a person or for a firm, there are so many requirement conditions which are required to be fulfilled by them before applying for a loan such as 3 year business and the individual tax returns, bank statement of the personal bank account of the applicant, financial statements of the business for the recent times, the agreement of a franchise if it is applicable on the applicant’s business status and AR/AP schedules and so on. If these requirements are fulfilled only then a businessman or a firm is able to get approval for loan from the bank. The criterion is not very much hard but this documentation takes time for both the parties. Banks are only looking for a genuine businessman or a business to offer the loan and besides this the management of the bank is also checking whether the return of the loan is possible from an applicant or not. Moreover the banks do not approved the applications of a black listed business and the individuals. Here black listed persons or the businesses means those who previously took loan from the bank and do not return it to the bank and due to them the bank has the suffer for other proceedings against those black listed such as police complaint and other court convictions.

Motel Financing

Motel means, a hotel on the motorway. The business of motel is increasing very swiftly in the yester years. Motel finance and Motel financing are the synonym for each other. Banks and the other conventional lending sources such as financers all over the country are often turning down small amount loan money requests for the Motel Financing. Most of the time the credit of borrower is very good and the property is sounding very good and very well occupied. These kinds of sources do not want to handle small loan money. There are so many reasons for this as many deserving business people do not get the necessary loans to fulfill their purposes. Commercial Banks associate with the clients that small motel financial will not handle.

The stated income Motel Loans are available all the time for the most commercial real estate property types which are located in medium and the giant market sectors across the United States of America. Commercial Banks stated the income commercial loans that do not require the income documentation and they generally require the some documents than the traditional loan services and the traditional lending services. The most of the commercial banks offer the motel commercial loan as a part of their Comm-Series or Commercial Loan Program. For a firm or to individual to qualify for a Motel Loan , the current business must have to support minimum of 1.25 DSC and it has to be in the operation for at-least two years. 85% of the commercial financing is available for the MFP (Motel Financing Program) with the backing of SBA. It is stated that income motel commercial property loans are available with a maximum LTV 0f 75%.

The large balance Motel Commercial real estate loan program is designed for average and the condition which is above average condition property types which are located in the infant to giant market sectors. There are so many conditions attached with this such as they are not charging any upfront fees. The approval process is not very much lengthy. This means from the date of applying for a loan, if a person or a firm is fulfilling all the basic requirements then they are able to get fast approval on their desired loan and they are in the condition to fulfill their purposes with that amount of loan. Besides this the banks do not require periodic financial reporting from the customers or the loan applicants. Moreover the bank management offers 30 years terms with low and fixed rates of interest to the customers who are going to apply for the loan or they have applied for the loan previously.

Banks and the traditional sources of lending money have approved the loan against some property either of commercial type or of domestic type. Besides this if a person or a firm is having a big fixed deposit amount then he is also able to get loan against that fixed deposit. The banks and the other sources required these kinds of property before applying for a loan as they need it as a security as if a person or a firm is unable to return the loan amount then the money will be recovered by selling that property in the auction.