It is not unanimity anymore about what the Federal Funds Rate experts have in store. In 2016 the conversation between many economists and other pundits was mainly about when a hike in rate was going to take place, and in the last quarter it inevitably happened. In an article on my blog titled, “The Most Important Commercial Real Estate Trends in Review 2016 and Expectation for 2017” there is a section about why rates will continue to rise in 2017. Not only rates rose at the end of fiscal year 2017 by 25 basis point than previous year, but the rise also continued to in 2018. In fact, many Fed officials advised that rates will rise to a range of 2.25 to 2.5 percent by the end of fiscal year 2018...Read More
Category Small Business
There are many moving parts in the process of obtaining a loan from inception, through application until the loan is closed. The focus of underwriting, credit analysis and risks management have become the cornerstone of the process. Banks and lenders are not only in a business of providing loans and other financial services, but also mitigating and managing risks with any associated assets, entity, sponsor or firm they plan to fund. This is why many ratios are used when performing credit analysis to determine if a borrower and the company can be funded and how much loan proceed will be disbursed. This short post is to quickly explain 3 of the 7 crucial steps banks and lenders use for sound credit analysis to fund business deals.
Step 1: Story About the Business and...Read More
Usually at certain events that particularly catered to real estate and small businesses I often will hear “The entrepreneur bug biting a few.” By this, I am referring to a select few individuals who wake up one day and decide to start a small business without a business plan or lack thereof any plan whatsoever. Now being an entrepreneur and small business owner can significantly impact local economies by creating jobs, empowering young adults at learning other crafts, help a community and much more...Read More