Enable Java Script

Either your browser does not support JavaScript, or you have JavaScript disabled.
You must have a JavaScript-enabled browser to use this site.

Microsoft Internet Explorer

To turn on JavaScript in Internet Explorer, follow these steps:

  1. On the Tools menu, click Internet Options, and then click the Security tab.
  2. Click the Web content zone that you are using (for example, click Local Intranet),
    and then click Custom Level button.
  3. Locate Active scripting under Scripting settings. Click to select the Enable radio button.
  4. Click OK button on Security Settings and Internet Options windows to save your changes.

To download Internet Explorer 7, click here.

Firefox

To turn on JavaScript in Firefox, follow these steps:

  1. On the Tools menu, click Options.., and then click the Content tab.
  2. Click to select the Enable JavaScript check box.
  3. Click OK button to save the setting.

To download Firefox 2, click here.

Safari

To turn on JavaScript in Safari, follow these steps:

  1. Open Safari
  2. On the Safari menu, click on Preferences.
  3. Click the Security icon.
  4. Click on Enable JavaScript next to the Web Content section if it is not checked
  5. Close the Preferences window
  6. Close and restart Safari.

Opera 9.xx series

To turn on JavaScript in Opera 9.xx series, follow these steps:

  1. Open Opera.
  2. On the Tools menu, click Preferences.
  3. Click Content in the Preferences list.
  4. Check the box next to Enable JavaScript.
  5. Click the JavaScript Options button to open the JavaScript Options box.
  6. Check the boxes that you want to allow.
  7. Click OK.
  8. Click OK.

Google Chrome(v0.4.154.23)

To turn on JavaScript in Google Chrome(v0.4.154.23), follow these steps:

  1. First close any open Chrome windows.
  2. Right click on a blank area of your Desktop.
  3. Select New.
  4. Create a new Shortcut with the following in the "Type the location of the item:" text box:
    • For Windows Vista:
      %userprofile%\Local\Google\Chrome\Application\chrome.exe -enable-javascript
    • For Windows XP:
      "%userprofile%\Local Settings\Application Data\Google\chrome.exe" -enable-javascript
      Note: You'll have to enclose the file path for Windows XP in quotes due to there being spaces in it.

 

 

 

 

Structuring Commercial Loans

​Determine the structure of your commercial loan by considering a few simple factors.

_

 

 

Structuring your commercial loan can be easy.

Structuring a commercial loan need not be a daunting task. In simple terms, the structure is generally determined by the purpose of the loan, the borrower's ability to repay, and the useful life of the assets purchased with the loan. Commercial loans have many different forms and names, but generally can be categorized into three types: those with a short, medium, or long-term purpose.

Lines of Credit

Perhaps your business is seasonal and you're in need of working capital. A line of credit is extended for short-term purposes requiring that you repay the loan from the revenues generated by that capital.

For example, credit is extended to a farmer who buys seed and chemicals, raises a crop, and repays the lender from sale of the crop at year's end. Another example would be financing the purchase of inventory or the fabrication of products that are seasonal in demand.

The lender is, in effect, betting that the anticipated sales will occur and that accounts receivable will be collected to repay the lender. Lines of credit also might be used to advance the cost of labor and materials to a borrower who is contractually reimbursed at specific stages during the building or fabrication process.

Lines of credit can be used as permanent capital loans; a substitute for equity. Such loans constitute revolving credit - the loan is never fully paid, but continually has advances and repayments. These loans are typically secured by accounts receivable and inventory. They are generally used if a business has little or no seasonality, and has the continual need to meet short-term expenses while collecting accounts receivable or maintaining a certain inventory level.

Bridge loans are similar to lines of credit in that they are short-term. The credit serves as a bridge until a certain specified event occurs that creates the ability to repay. The event triggering repayment could be the sale of an asset, an infusion of equity or pre-arranged refinancing of the debt, as when an interim construction loan is replaced with permanent financing.

Term Loans

If the purpose of the loan is to purchase assets that decrease in value over time, such as machinery or equipment, you should repay the loan before the asset has to be replaced (e.g.if the asset will be obsolete seven years from now, the term of the loan will typically be less than seven years).

At a minimum, the asset being purchased is used as collateral so the lender will also be concerned with whether the liquidation value of the asset (the likely price of an asset when it is allowed insufficient time to sell on the open market) will exceed the outstanding balance of the loan at any given time.

Term loans may be given for other purposes, such as providing long-term working capital to expand, hire additional employees, or do additional marketing. The lender, like the borrower, is betting that such expenditures ultimately will result in additional revenue that can be used to repay the loan. However, the return from such expenditures may take years to materialize, so low monthly payments provide cash flow relief while the revenue builds.

Loans of this type typically are amortized over seven years or less. Since term loans are repaid from cash flow from operations, the lender will evaluate the borrower's long-term profit potential.

Mortgage Loans

If you're looking to purchase land or buildings, or to finance construction of a facility or to improve existing facilities, the loan repayment period is usually 20 years and the loan is secured by the asset being purchased or existing assets.

If the asset is being built, you may generally pay interest only until construction is completed. Alternatively, you may also establish a shorter-term bridge loan, and pay it off with a permanent mortgage loan when construction is completed.

Work with your lender.

A sensible loan should be profitable for both the borrower and lender. Work with your lender to structure financing that takes into account your ability to repay, cash flow, and asset values. Your lender should be as motivated as you are to structure loans that are prudent, while maximizing the profitability of your business.

​DIS-400*-DIS