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Dear
Business Owner:
Do you want to get the best interest rates available right now, at possibly no additional
cost to you over and above the Bank's one percent (1%) origination fee which is
charged in one form or another? Did you know that if the Bank has no origination
fee or only one quarter of one percent is charged, a higher than normal interest
rate is probably being asked or some other hidden bank charges may be demanded
after the loan is closed? If you are interested in low rates and deciphering the
hidden costs of a loan, you should read on and see how I can assist you.
Interest rates may be going up in the near future. This is
still a good time to either refinance or obtain new financing for your new
project. To get the best interest rate and terms available you may need the
experience of a professional loan consultant. A financial loan consultant knows
how to analyze loans in the same way a bank does. Please do not accept the
statement that no other bank will offer you any better interest rates or terms.
Being able to present the right financial data to a bank is very important to
getting a good interest rate.
Knowing how a Bank is going to view your loan request and being able to see and
know what their analysis is going to tell you before you go to the Bank is
important to you. There is a very good possibility that I can put together the
right factors that will produce the best interest rates and other loan terms
that are important to your business. With over 35 years of experience I have
been able to obtain interest rates that are from ½ to 2% lower than what banks
currently offer to general customers. Banks will try to get the best rates
and best terms for themselves, and discourage you from going elsewhere to learn
how to find better rates and terms for yourself.
Consider
the following example as to the saving per year the interest rate can make on a
20-year loan of
$3,720,000.00 at 10% and also at 9 1/2 % interest rate. The total
payments for a 10% loan is $430,789.00 and the total payments for a 9 1/2 %
interest rate loan will be $416,107.00 per year. This is a savings of $14,682.00
per year and over 20 years the savings is $293,640.00. The cost of a one-point
origination fee charged only once for the entire term of the loan is $37,200.00.
This one percent origination fee will be paid in 2 1/2 years; however, the
saving of a 1/2% interest rate over 20 years, even after paying the 1%
origination fee is $256,440.00. The difference in the interest rate of 9 1/2%
and 10 1/2 % is 1 % and with a 20 year amortized loan the saving is $29,569.00
per year, which will pay off the one percent origination fee in only 15 months
and the total saving in this example is
$554,180.00 after paying off the one percent origination fee.
The
total saving in interest rates is so substantial that you cannot afford to
accept any interest rate that is even one half of a percent higher then is
possible to get from any bank.
Other
terms that banks will charge on a continuous monthly and annual basis can amount
to a half of one percent or more per year. Understanding these costs and
eliminating them is part of my services.
References :
Derek Alexander,
owner, Holiday Inn Express, Keystone, SD ph 574-4913
Reid Hans owner owner, Woodlake Athletic Club, Sioux Falls, SD ph 502-645-4245
Hal Vorachek owner, Subway, Sioux Falls, S. D. ph 605-333-4899
Roy and Susie Drake owner, Drake Equipment, Sioux Falls, SD, ph 605-336-1727
Loren Miller owner, Galaxy Computer Services, Inc. Sioux Falls, SD ph
605-366-8969
David Grover owner, Comfort Inn , Hill City, S.D. ph 605-574-2100
Paul Bradsky, owner, American Inn, Rapid City, SD ph 605-342-8970
Robert Knape owner, Grain Bin, Sioux Falls, SD, ph 605-339-1264
The
Prime Interest rate has come down this year and may now be going up steadily in
the near future, and tightening credit requirements could create some problems in trying to get
loans and refinancing. Banks will be looking for higher quality loans to hedge
against a slow down in sales, profits and cash flow for repayment of their
loans. As banks become more selective in their loans, because of the above and
become highly loaned up, you may need the knowledge and experience of a
professional loan consultant that works with loans that are sometimes difficult to place with a bank. Since I work
with most all the banks in South Dakota and some banks in other states, it’s
my business to know which banks are loaned up and now looking for a particular
type and quality of loan.
Keep in mind that when you go
shopping for loans and interest rates, each bank will be checking your credit
report that will tell them what banks you have already interviewed for the same
loan. This information may not be of real help to you, but rather a detriment.
With your cooperation I can avoid
unnecessary credit reports being obtained on you and your business. The more
banks that turn you down the more difficult it is get the right loan. A
professionally prepared loan application that includes a full bank credit
analysis will limit the banks you interview to just those banks that will make a
commitment for the loan you need.
The
size of the bank can be of real importance to you, as smaller banks may need to
go to correspondent banks for funding of a particular type and size of loan.
These correspondent banks may point out potential problems, which could delay
approval or get the loan declined. Knowing the right bank to go to is important
to getting the right loan for your business. All information and data received
is kept confidential.
Being able to get the best financing and interest rate takes time, knowledge and
experience. I will keep all financial data in strict confidence. My work
involves processing and analyzing the loan application to make sure that you
receive the best terms available from any bank. Since I work with all banks, I
have knowledge of each bank's loan limits, its interest rates and terms
available. This will be helpful in getting the loan placed with the right bank.
I also process SBA loans and Rural Development Business and Industry loans. The
cost of servicing and guarantee fees for these loans can be considered high.
However, a bank can make most of these loans without the high guarantee fees.
But you do need to know which banks are capable of approving these loans and
have experienced loan officers that can analyze the risk.
Call 605.338.9566 or e-mail me today for more information: services@bizloanapps.com
Sincerely,
Lyle B. Benson, Loan Consultant
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