WOJTOWICZ: Lots to consider when weighing mortgage payoff
You certainly don’t want to keep paying a mortgage if it restricts your business in other areas. But you don’t want to cough up too much at once and have the same effect.
Jean Wojtowicz
Articles
WOJTOWICZ: Prepare, then apply for small-business loan
To write (or refresh) your mission statement, think about what you do, how you do it and why you want to do it.
WOJTOWICZ: Is small-business ownership for you?
The horror stories are sobering: Dun & Bradstreet reported earlier this year that businesses with fewer than 20 employees have only a 37 percent chance of surviving four years and just 9 percent will be around 10 years.
WOJTOWICZ: Lenders need financial statements to protect investment
The bank needs to know how your business is doing right now (usually the most recent 30 or 60 days), rather than rely on your current year’s tax return that may have aged several months.
WOJTOWICZ: It pays to know environmental requirements
Unexpected problems add to the headaches of opening or relocating a business, and we hear a lot about the hang-ups of required, but annoying, environmental investigations.
WOJTOWICZ: Temporary program helps refinance commercial mortgages
A recent study from Credit Suisse found that over $15 billion of small commercial mortgages (under $5 million) are coming due in the next few years.
WOJTOWICZ: Do homework before meeting business lender
Prepare to talk in detail about your business, the plans you are making and the reasons for expanding before you show the banker the facts and figures.
WOJTOWICZ: Character always counts—even in loan decisions
During these difficult times, small-business lenders are looking harder at intangibles—including a borrower’s character.
WOJTOWICZ: Missed tax payments could affect business loans
Property tax billing and collection were at their most confusing during the recession, when businesses were experiencing lost revenue, poor projections and, in general, toughing it out as best they could.
WOJTOWICZ: Relief available for firms with falling real estate values
New law allows banks to refinance existing real estate and equipment debt through the U.S. Small Business Administration 504 loan program.
WOJTOWICZ: How to lay your hands on working capital
Small-business owners looking for working capital would be well-served to do their research in advance and can ask their bankers about several approaches, including financing based on assets.
WOJTOWICZ: Be careful when locking in low loan rate
This may be a golden opportunity for small-business owners to lock in a low rate to finance expansion. But make sure you understand
the loan agreement.
WOJTOWICZ: Is it time to buy rather than lease space?
Buying a building for your business is still possible in a tight lending market, but bankers will review real estate purchases
carefully.
WOJTOWICZ: Stimulus is expanding small-biz lending
The economic stimulus package allocated $375 million to the U.S. Small
Business Administration so it could offer more generous terms to small-business borrowers.
Avoid temptation to delay property tax payments
If you are late in making property tax payments, begin to chip away at your bill by making weekly payments.
Lean companies have best chance to survive
Make your business look as attractive as possible to your banker because you are competing for financing with other small
businesses.
FINANCE: How will higher interest rates affect my loan?
Every time the Q: Fe d e ra l Reserve raises rates, I expect to pay my bank more for financing. I guess I understand the reason for this-the government says it wants to guard against inflation-but the Fed’s actions still make it hard for the small-business owner who needs to borrow money. How can I get the lowest possible rates? And what will my bank require of me that they don’t now? Or is there any way around this…