BizDK.com provides useful information on business site including business ethics, community development, environment, franchises, government & trade, management, self-employment, women's business.  
 
Home     |     Get Listed Here
 

Posts Tagged ‘Business’

Things You Need Know About Bridge Loans

Tuesday, March 27th, 2012

This type of business financing is very aptly described by its name, Bridge loans or Bridging loans. This type loan is not a permanent or even long term loan. It is exactly as stated, a bridge between now and when the long term financing is in place. In general, bridge loans are taken out for a maximum of 3 years awaiting long-term or larger financing. The loan’s purpose is only to cover the interim period until the more permanent financing can be arranged. Once the new financing is obtained, the money will be used to pay back the bridge loan.

Bridge loans have a higher interest rate than conventional loans. It is not uncommon for lenders to require cross-collateralization in addition to designating a low loan-to-value ratio in order to lower their risk. However, bridge loans are able to be arranged quickly and do not require a massive stack of paperwork.

Bridge loans are frequently used in real estate purchases to quickly close on property, take advantage of a short-term opportunity, or retrieve an estate from foreclosure. When the property is sold or refinanced, the loan is typically paid back.

Bridge loans are similar to hard money loans as both are not traditional and obtained for unusual circumstances or emergencies. The major difference is that hard money refers to the source whether an individual, private company, or investment company. Bridge loan references the duration of the loan.

The interest rate of a bridge loan is generally 12-15% for a maximum of 3 years. For commercial properties, the Loan-to-Value ratio does not exceed 65% and 80% for residential properties. Loans can be issued on a closed or open timeframe for payoff.

Banks do not typically offer real estate bridge loans because of the high risk and lack of documentation which does not meet the industry’s lending criteria. A bank would have difficulties justifying its lending practice to government regulators and investors if it issued bridge loans. Therefore, most bridge loans are generated from individuals, businesses, and investment pools.

Bridge loans are used in corporate finance and venture capital as well. They can infuse small amounts of cash to carry a company through consecutive major private equity financings. In addition, they can assist a distressed company while search of an acquirer or larger investor. If a company is being sold, a bridge loan can finance final debt before it is publicly offered.

Lone Oak Fund is a private mortgage fund larger than many banks that makes bridge loans typically ranging from $500K to $12.5M on commercial and residential properties located throughout Southern and Northern California. Founded and managed by experienced real estate developers, Lone Oak Fund is the preferred lender for professionals seeking fast, reliable bridge financing for their clients, while providing an additional profit center.Since its inception in 2002, Lone Oak Fund has become one of the largest and fastest growing private bridge lenders in California. The fund is supported by the financial strength of its 400 plus members, including high-net-worth individuals, institutions, and pension funds, with over a billion dollars in loans funded.

Searching For Precision Machining Companies

Friday, March 4th, 2011

Precision machining is a process that is used to produce a large number of both large as well as small objects that we make use of in our daily lives. Each intricate and detailed piece that makes up an object needs the touch of a machinist’s skills. Similarly, a machine or tool that is worn down will require the action of machine tool calibration quite frequently. There are also other facilities provided by precision machining apart from calibration. These would be detailed welding or grooving carried out by a precision machinist. Ranging from aircraft aluminum alloy production right till devices for surgically drilling of bones precision machining caters to almost every industry and technology. Put simply, if an object is made of parts, it would have needed precision machining.

In this day and age there are many different ways of searching for precision machining companies. Here is a look at some of those different methods and the advantages and disadvantages attached to each.

Probably one of the most popular ways of searching for a company today is to use the Internet. You can simply go to Google or Yahoo, or any search engine, and type in the search term ‘precision machining’ and a huge list of resulting websites will appear on screen. You can then visit each site in turn and read more about the company and contact them directly. The great aspect about this way of searching is that it can be done from the comfort of your own home or office and at any time you wish, the Internet never closes. A downside to this method is that it can be very time consuming visiting each site and it is hit and miss as to whether the company is of good quality.

A great way of knowing you will receive good service from your machining company is to go through a referral. Ask around work colleagues and acquaintances in your field if they can recommend a precision machining company to you. Using a referral gives you a head start as the company has already been tried and tested, and it saves time ploughing through the many precision companies available.

Located in Fort Wayne, Indiana, CNC Industries, Inc. is a world-class job shop specializing in high-speed CNC Machining, Rapid Product Development, Fabrication, and Assembly of component parts. Serving the Aerospace, Defense, Medical and Industrial markets, CNC Industries is committed to providing superior Pricing, Quality, On-Time Deliveries, and Customer Service.

Not only has CNC Industries applied proven Lean Manufacturing principles throughout the company, they have innovated numerous Lean initiatives specific to Job Shops. Every year CNC Industries, Inc. provides hundreds of thousands of precision machined and fabricated parts to companies of all sizes – many of whom single source their parts to them. Discover for yourself why CNC Industries has become the standard by which many of their customers judge their other suppliers.

Copyright © BizDK.com, Inc. All Rights Reserved.