Business Planning - Creating Plans

Getting a Bank Loan

What are the three `c's`?
Traditionally bankers look at what are called the three `c's`: character, credit and collateral. Character means more than not having a criminal record. It means that the banker feels confident that you are not going to suddenly disappear for parts unknown if the business runs into trouble. Specifically bankers like to see ties to the community such as long residence, family ties, and home ownership. A clean credit history is important. A couple late credit card payments shouldn't be a factor, but missing mortgage payments for three months in a row will require a good explanation. Bankers like good character and good credit, but they live for solid collateral. Equipment, buildings and trucks--that's the kind of stuff that bankers really like for collateral--solid value and likely to be worth a lot even if the business goes bust. Inventory, raw material and goods are second choices for collateral--they will lose their value more quickly than fixed assets but still be worth something.

Can you get a business loan?
The criteria for business loans varies much more widely than for consumer loans and often varies quite a bit from one banker to the next at even the same bank! However here are some rules of thumbs to give you an idea of your chances of getting a loan.
Getting a loan for a new business is tough
Fixed assets such as machinery or buildings can almost always be financed
Current assets such as inventory or goods in process increase your loan chances
2+ years of profitable operation greatly increases your loan chances
The larger the owner's investment in the business the better your chances of getting a loan
Loans to small corporations will often have to be personally guaranteed by a shareholder
It is difficult to get loans to offset operating losses
It is usually possible to get a loan to modestly expand a profitable business

How to get the bank's money, even when the bank says `no!`
Banks have much more lenient standards for lending to consumers than to businesses. So what you can do is borrow the money from the bank as a consumer and then turn around and personally invest the funds in your business. Just make sure that you never lie how about you are going to use the proceeds on a loan application. For example you could apply for a home equity loan to tap any available equity in your house. Then take the funds and invest them in your business. The bank feels safer because their statistics show that home equity loans or much more likely to be repaid than loans for brand new businesses. No equity in your home? Maybe you can get a car loan?

Getting an appointment with a bank
Don't just show up in person--first make an appointment by phone. Ask the receptionist in the bank or the loan department for the name of the appropriate person who would handle your loan request. Of course it would be better, but not necessary, to get a referral from a friend or advisor such as your lawyer or accountant. When you get the name of the appropriate loan officer simply ask for an appointment. Don't offer any more details over the phone, unless the loan officer requests them. The more details you offer over the phone, the greater the chances you won't get the appointment at all. Sound confident. Sound matter of fact. Sound like you don't even need the money... that's the kind of person that loan officers like to lend to.

Country wide

Why Countrywide

Countrywide was founded in 1969 with a commitment to break down the barriers to owning a home. Today Countrywide, America’s #1 Home Loan Lender, has helped millions of families find ways to accomplish their home ownership needs, whether buying a first home or refinancing their current loan. We say it, believe it and set out to prove it everyday: No one can do what Countrywide Can.SM Learn more about what our home loan customers are saying.Countrywide has a long standing commitment to lowering the barriers to home ownership and to educating consumers. H.O.M.E. (Home Ownership Mortgage Education) is Countrywide's financial education program designed to provide the knowledge you need to help achieve and retain home ownership.

Loan Products

Refinance
Countrywide has refinance mortgage solutions you could be able to use for debt consolidation or accessing cash from equity that may have built up in your home. Refinance loans can be used to help with many personal financial situations such as reducing monthly payments, home improvements, college tuition and more. Call Countrywide today or learn more in our Refinance section on countrywide.com.
Home Equity
Home Equity Loans and Home Equity Line of Credits (also known as HELOCs) are fixed or variable interest rate solutions for getting cash out of available equity in your home. This equity could be used for any purpose such as making home improvements, consolidate debt, vacations, or unexpected expenses. Call today for a free consultation from a Countrywide home loan expert or visit our Home Equity section online to utilize mortgage calculators and home loan rate tools.
Purchase
Whether you are a first time home buyer or trading up to a larger home, Countrywide works to find the best home loan solution for you. With products for new home purchases as well as, second, vacation, and investment homes, we can help. Learn more online or call now and ask about our no down payment options.
Reverse Mortgages
Countrywide Bank, FSB and Countrywide Home Loans, Inc. - have teamed together to offer reverse mortgage products through Countrywide Bank. Education is critical and Countrywide is committed to helping seniors make informed decisions and understand their home loan choices.

Multi-Family and Commercial Loans
Fixed and floating rate commercial loans from $500,000 to $1 billion.

Insurence policy

What Is Life Insurance?

Life insurance is a contract that pledges payment of an amount to the person assured (or his nominee) on the happening of the event insured against.The contract is valid for payment of the insured amount during:

• The date of maturity, or


• Specified dates at periodic intervals, or


• Unfortunate death, if it occurs earlier.

Among other things, the contract also provides for the payment of premium periodically to the Corporation by the policyholder. Life insurance is universally acknowledged to be an institution, which eliminates 'risk', substituting certainty for uncertainty and comes to the timely aid of the family in the unfortunate event of death of the breadwinner. By and large, life insurance is civilisation's partial solution to the problems caused by death. Life insurance, in short, is concerned with two hazards that stand across the life-path of every person:

• That of dying prematurely leaving a dependent family to fend for itself.


• That of living till old age without visible means of support.

Life Insurance Vs. Other Savings

Contract Of Insurance:

A contract of insurance is a contract of utmost good faith technically known as uberrima fides. The doctrine of disclosing all material facts is embodied in this important principle, which applies to all forms of insurance.At the time of taking a policy, policyholder should ensure that all questions in the proposal form are correctly answered. Any misrepresentation, non-disclosure or fraud in any document leading to the acceptance of the risk would render the insurance contract null and void.

Protection:

Savings through life insurance guarantee full protection against risk of death of the saver. Also, in case of demise, life insurance assures payment of the entire amount assured (with bonuses wherever applicable) whereas in other savings schemes, only the amount saved (with interest) is payable.

Aid To Thrift:

Life insurance encourages 'thrift'. It allows long-term savings since payments can be made effortlessly because of the 'easy instalment' facility built into the scheme. (Premium payment for insurance is either monthly, quarterly, half yearly or yearly). For example: The Salary Saving Scheme popularly known as SSS, provides a convenient method of paying premium each month by deduction from one's salary. In this case the employer directly pays the deducted premium to LIC. The Salary Saving Scheme is ideal for any institution or establishment subject to specified terms and conditions.

Liquidity:

In case of insurance, it is easy to acquire loans on the sole security of any policy that has acquired loan value. Besides, a life insurance policy is also generally accepted as security, even for a commercial loan.

Tax Relief:

Life Insurance is the best way to enjoy tax deductions on income tax and wealth tax. This is available for amounts paid by way of premium for life insurance subject to income tax rates in force. Assessees can also avail of provisions in the law for tax relief. In such cases the assured in effect pays a lower premium for insurance than otherwise.

Money When You Need It:

A policy that has a suitable insurance plan or a combination of different plans can be effectively used to meet certain monetary needs that may arise from time-to-time. Children's education, start-in-life or marriage provision or even periodical needs for cash over a stretch of time can be less stressful with the help of these policies. Alternatively, policy money can be made available at the time of one's retirement from service and used for any specific purpose, such as, purchase of a house or for other investments. Also, loans are granted to policyholders for house building or for purchase of flats (subject to certain conditions).

Who Can Buy A Policy?

Any person who has attained majority and is eligible to enter into a valid contract can insure himself/herself and those in whom he/she has insurable interest. Policies can also be taken, subject to certain conditions, on the life of one's spouse or children. While underwriting proposals, certain factors such as the policyholder’s state of health, the proponent's income and other relevant factors are considered by the Corporation.

Insurance For Women

Prior to nationalisation (1956), many private insurance companies would offer insurance to female lives with some extra premium or on restrictive conditions. However, after nationalisation of life insurance, the terms under which life insurance is granted to female lives have been reviewed from time-to-time. At present, women who work and earn an income are treated at par with men. In other cases, a restrictive clause is imposed, only if the age of the female is up to 30 years and if she does not have an income attracting Income Tax.

Medical And Non-Medical

SchemesLife insurance is normally offered after a medical examination of the life to be assured. However, to facilitate greater spread of insurance and also to avoid inconvenience, LIC has been extending insurance cover without any medical examination, subject to certain conditions.

With Profit And Without

Profit PlansAn insurance policy can be 'with' or 'without' profit. In the former, bonuses disclosed, if any, after periodical valuations are allotted to the policy and are payable along with the contracted amount.In 'without' profit plan the contracted amount is paid without any addition. The premium rate charged for a 'with' profit policy is therefore higher than for a 'without' profit policy.

Keyman Insurance

Keyman insurance is taken by a business firm on the life of key employee(s) to protect the firm against financial losses, which may occur due to the premature demise of the Keyman.

Be Ready

No matter what your plans, they always seem to require money!

Buying a new car, truck or van, improving your home or buying a new one, sending a loved one off to college . . . regardless of your needs, your credit union has a loan program that fits.

Our lenders provide any type of Land Loans:

LAND LOANS:

Looking for a Land Loan through a Private Lender or Bank? Have bad credit? We arrange Land Loans for all types of properties and for all purposes: CONSTRUCTION LAND LOANS, Land for Commercial/Industrial uses - COMMERCIAL LAND LOANS, BAD CREDIT LAND LOANS, Subdivision Land Loans for builders, Special uses land, Mobile Home RV parks, Parking lots, Rural/Agriculture land, and many others. Several of the different types are listed below:
FARM LAND LOANS:

These Land Loans can be used to purchase land, livestock, equipment, feed, seed and supplies. They can also be used to construct buildings or to make improvements to your farm. These farm loans are often provided to beginning farmers who cannot qualify for conventional loans because they have insufficient financial resources. They can also help established farmers who have suffered financial setbacks from natural disasters, or whose resources are too limited to maintain profitable farming operations.
LAND DEVELOPMENT LOANS:

A Land Development Loan is an advance of funds, secured by a mortgage, to finance the making, installing or constructing of improvements necessary to convert raw land into a construction-ready building site. In other words, a Land Development Loan takes an unimproved parcel and breaks it up into a number of smaller, improved parcels upon which homes or commercial buildings can be constructed.
LAND EQUITY LOANS:

If you currently own the land on which your home will be built, you may be able to use the value of the land, instead of cash, as a down payment. Even if you do not own the land outright, (i.e., you still are making payments on it) it is often possible to use your equity instead of a cash down payment. Land Equity Loans typically have lower interest rates than home-only loans. Another advantage is that site improvements such as a well, septic system, garage, fence, deck, etc., can be financed in the loan amount. In some cases, you can also finance the closing costs.
LAND PURCHASE LOANS:

A Land Purchase Loan can provide the funding you need to purchase the ideal land to build your dream home! It can help you pay for land before you start building on it. Depending on your needs, you can choose to fully amortize your payments, or pay interest only for the majority of the term, to keep your payments lower.
LOT LAND LOANS:

Lot Land Loans are designed as purchase money loans for those borrowers who aren’t ready to begin construction at this time, and as such are not ready to obtain a construction loan, but will be ready in the near future. The lot must be normal for the area and at least one utility must be available from the street. (Septic tanks or propane tanks are acceptable if these features are normal for the neighborhood.)
MOBILE HOME LAND LOANS:

After you have bought your Mobile Home, you may need to decide where you want to live, in a mobile park or on land that you own. To get a Mobile Home Land Loan you do not need to have a house set up already.
RAW LAND LOANS:

Banks are very wary of lending on raw/undeveloped land because of the complexity involved in evaluating the project, geographical limitations and increased uncertainty and risk. Private Lenders have a better ability to evaluate these factors and can provide funding for Raw Land purchases, refinancing or equity cash-outs. Terms and availability of Raw Land Loans are property and project dependent, but Raw Land Loans are generally tied to the value of the property and not the borrower's personal credit.
VACANT LAND LOANS:

Vacant Land Loans are designed specifically for borrowers that want to purchase parcels of unimproved land or refinance existing loans secured by unimproved land. Such parcels may be located in a developed, platted subdivision, or may be stand-alone parcels.
VA LAND LOANS:

Since VA Loans require no down payment and have a high loan to value ratio, some banks or lending institutions are not willing to approve interim Land Loans directly to veterans. At Lending Universe, we have created an effective way for veteran land-buyers to be able to get the land they want.

Link here