In today’s hyper-competitive and dynamic market, companies need to keep a sharp eye on cash flows and costs. Occasionally, companies need working capital and often look to debt financing as one of the primary means of providing the cash necessary to fund operations. In his Finance Monthly article, Jeff Pomerance, Head of SulmeyerKupetz’s Transactional Practice, shares his five tips for procuring the ideal secured business loan when faced with all of the options associated with analyzing hard money loans.
To evaluate secured debt financing and credit opportunities that fit your business, Pomerance suggests: (1) really know your company (and understand its cash flow needs); (2) establish effective internal coordination; (3) properly evaluate each loan; (4) prepare a plan for growth and develop meaningful projections; and (5) implement and monitor performance and results.
Pomerance comments, “Secured loans represent a vital source of working capital for today’s businesses, and come in a myriad of forms and types. Although a company’s collateral base will almost certainly have a significant impact on the choice of secured loan that works for that company, the ultimate choice of a secured loan that meets a company’s needs should be based on an intelligent and informed approach to secured lending. Simply looking at the lowest interest rate will not work!”
Read the full article here.