Start a Restaurant

There are still viable options for restaurant financing in the market today. Borrowers however should realize and accept that the choices have become more limited, than they where just 6 months ago. For example, most conventional and or conduit type loans for restaurants are now gone.

Instead, borrowers should be focused on portfolio lenders, i.e. banks or lenders that hold the debt on their balance sheet. This is the opposite of what we have seen in the last decade as most restaurant lenders packaged and sold their loans off onto the secondary market and thus rid themselves of the loan in exchange for a split.

Portfolio lenders can be difficult to find though. And they don’t really advertise themselves as such. Borrowers should be prepared to call many banks to find sources that are set up as portfolio lenders and that are willing to consider a special purpose property like a restaurant. Many banks are shying away from this building type. We’re occasional are asked why.

The reason boils down to the difficulty in recollecting the bank’s capital in case of borrower default. When a borrower defaults on a loan, the bank has to go through the foreclosure process, than they have to sell the property on the open market to recoup their capital. Because the building itself was designed as a restaurant it cannot adequately be used for anything other than a restaurant – thus limiting their pool of potential buyers, making it harder to sell.

As far as terms, restaurant loans are almost all now quarterly adjustable. However rates are very strong due to Prime being as low as it is (currently at 4%). We are seeing most restaurant loans in the 6%’s now. Via government sponsored loan programs borrowers can still expect 85% financing on purchases and up to 85% on refinance transactions.

Author: Jeff Rauth
Article Source: EzineArticles.com
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People often ask what makes WebWarehouse different from a regular commercial agent.  The difference is customer satisfaction. 

So many people seem to encounter one problem after another when using a regular commercial agent, but what is it that WebWarehouse do differently?  The truth is simple – we give the customer the service that they want, individually tailored to their needs.

 The following case study was written by one of WebWarehouse’s many satisfied customers, and really highlights the contrast in the types of service he received.

 In late 2008 we were awarded a major contract that we had been tendering for.  The contract involved storage, a large pick and pack operation and distribution, and therefore we needed to rent commercial storage space and warehouse space.  Surely it couldn’t be that hard for us to find warehouse space for rent?Unfortunately, it seemed that nothing was straightforward.  We made initial web enquiries for storage in Bicester, but two of the three companies we contacted did not answer our request at all.  The third company asked our requirements, but took almost 48 hours to come back to us with suitable warehouses to rent.  Only one of the storage spaces seemed to meet our requirements, so we made an appointment to view the premises.The viewing was not what we had hoped it would be.  The building seemed to be what we were after, but the agent was not able to help us with any auxiliary requirements we had, and there was no flexibility with the price.  We were back to square one.

 The second time we went back to Google, we found WebWarehouse.  We made a phone call and spoke to Alan about our requirements, and he took the time to listen to what we wanted, and understand our needs.  Within fifteen minutes of our call ending, Alan had emailed me with his contact details and information on the different services that WebWarehouse had to offer.  In addition, he asked us to provide a “wish list” of any requirements we had, other than simply storage, such as racking, mezzanine flooring and material handling equipment.

 Within 24 hours, Alan had emailed me details of half a dozen suitable storage units in the area, and had arranged for us to view four of these premises on the same day, two days  later.  We were given a guided tour of each of the units, and shown the pros and cons of how each building would work with our list of requirements.  We shortlisted two warehouses, and the following day Alan provided us with a list of pricing options for each building.  The pricing options had easy to understand breakdowns, with an extra price list for each of our “wish list” items.  WebWarehouse  was even able to provide assistance with our move.

 Alan contacted us periodically, both before and after the move.  WebWarehouse now provides us with one invoice each month.  This invoice covers the rental of the warehouse, plus the maintenance, rates and utility bills. 

Article Source:http://www.articlesbase.com/customer-service-articles/the-pitfalls-of-using-a-regular-agent-1290997.html