Self Storage Financing
In our current economy, with unemployment rates being low, there is no better time to attempt to go into business on your own. If you sift through the seemingly never-ending stream of work from home and other small business opportunities all looking to make money off of you, there is the proven self-storage business, and storage business financing is more readily available than you might think.
Creating Wealth Through Self-Storage
According to the Self Storage Association, more than 95% of current storage business owners are happy in their business and would recommend the SSA to other storage business owners. There they have a wealth of information and links to even more information to give you all of the information that is necessary to get your storage business going. It is a solid and lucrative field to get started in owning a business, and there is financing available to help you get started regardless of what your credit situation may be.
Good Debt vs. Bad Debt
A great mentor once told me: “If you are born without a lot of money, and you do not borrow money and go in debt. Odds are, you will die without a lot of money.” However, he was quick to clarify the difference between good debt and bad debt.
Though it may sound like an oxymoron to some; there is good debt! In my world, good debt is when someone else is paying off your debt, and each month as you pay off your debt, your net worth increases!
In the self-storage business, debt is good. The tenants pay off your debt. A loan can be used to open your storage business, or with proper leverage, it can be used to accelerate the growth of your business.
Types of Loans
The storage business is a reliable and lucrative field to get started in owning a business, and there is ready help available regarding getting the necessary finances regardless of what your credit situation may be. For existing business owners and start-ups, there are several business funding sources available to offer cash. The loans for current business owners will include running a credit report in some cases; however, this is not the main focus over their approval process. They will be more concerned about how consistent and reliable your business.
SBA Loans
A Small Business Administration Loan, or SBA Loan, is a valid option. With an SBA Loan, investors can purchase a self-storage business with as little as a 10% deposit and can be amortized for as long as 25 years in some cases.
Unlike most commercial loans that will require refinancing every 3-10 years, SBA Loans can be taken to as long as the amortization period goes. Lenders also love these types of loans because the federal government has given them a guarantee on a certain percentage.
However, there are some downsides of these types of loans. SBA Loans tend to have higher closing costs (around 1.5%), but most the time, they can be rolled into the financing. The interest rates also tend to be a little higher than your typical bank loan.
Qualifying for an SBA Loan can come with hoops to jump through, and in comparison to other loan options, they can take a little longer. There is more documentation required, and approval has to not only come from the lender. The loan, the facility, and the borrower have to qualify for the SBA program.
Merchant Cash Advance
The repayment of this type of loan is made through a portion of your businesses merchant card activity. For this reason, companies offering these types of loans require a certain level of merchant sales per month verified before approval. This is one of the ways the focus can come off of your credit report.
If you are looking to start up a new business, there are loans available from 500 dollars going up to tens of thousands of dollars to start up a new business, purchase a franchise or expand your current company. These loans will require more credit rating focus than the investment for an existing business mainly because it will require more traditional repayment terms than the previously referenced loans that do not so much require repayment as they purchase against your future receivables. If your credit is less than perfect and you can provide a co-signer and stable income there are loan options available for you as well.
Whether you own a storage business that you require more financing to grow or you are looking for start-up financing for a new storage business the funding is available for you if you do your research. Regardless of your credit status, there is help available to expand your business to upgrade. The funds you receive from these loans can be used to develop, improve computers or workspaces. There are several approved uses for the funding, but it must relate to your business. The help is out there for you to get started; all you have to do is get out there and seek it out. In as little as a week, you can secure storage business financing and build a secure future for your family
What you need to do is simple
Based on your eligibility you can be approved for a cash advance against your future credit card sales. Visit any or all of the sites mentioned above and click on the links provided to “Apply Now” which will take you to a secure application. Just fill out the form and a representative will contact you within 24 hours to discuss your application.
Fast pre-approval and release of funds
Although a personal credit check is standard procedure, this alone will not determine if you get approved or denied. The overall health of your business and the volume of business conducted holds more weight than your credit score. Pre-approval takes only 24 hours, and you can have your funds in approximately ten days. Anywhere from $3,000 up to $1,000,000 depending on the lender and your business volume.
The criteria for eligibility is accommodating for small businesses Typically most lenders require that you be in operation for at least one full year and have monthly sales volume of $2,500 or more on their credit card machines.
Flexible repayment and zero hidden costs
A merchant cash advance is not a traditional loan that has a set repayment schedule–this is a cash advance against your future credit card sales. Therefore, you pay when your customers pay. The repayment is a fixed percentage of all future credit card sales and automatically deducted from your credit card transactions. Many lenders don’t require any upfront fees, closing costs, or additional collateral.
Use the funds the way you like
Cash advance monies can be used for anything including rent, supplies, wages, furniture, computers, medicine, or new surgical equipment.
There are many benefits to choosing a cash advance against your credit card sales as opposed to obtaining a traditional small business loan. Such uses include:
- A more straightforward, shorter application and approval process
- No need for collateral
- Approval with or without perfect credit
- You only pay when your customers pay, so if you are having a slow month, there is no
- Need to worry about making a monthly payment
- No exorbitant loan fees or closing costs
- Easy to fulfill requirements
Cash advances against your impending credit card sales are the wave of the future. It provides flexibility and peace of mind to anyone seeking veterinarian financing.