Building lifelong relationships with our members to help them achieve their financial goals.
Spring 2012 - Vol. 6, No. 2
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Business Matters –
During the past few years smart consumers have "deleveraged" by delaying big purchases, reducing discretionary spending and paying down debt. Business owners have felt the pain from this pull-back in consumer spending. One result is the pent-up demand for many products and services, from big-ticket items such as cars and appliances to basic services such as carpet cleaning and car maintenance. Some of this increased demand will be seen in 2012 as employment and job stability improve modestly.
The current economic situation presents three significant saving opportunities for business owners. Interest rates are at all-time lows, making it much easier than a few years ago for a successful business to service its debt, as interest payments now take up a smaller portion of your cash flow. Most analysts expect long-term rates to begin to increase by the end of the year.
At the same time commercial property prices appear to be at or near the bottom of this long decline in property values. Borrowing now to buy a business or expand your company or to buy a building for your business instead of leasing could result in big savings, compared to borrowing a few years ago or in the future.
Purchasing a business property at a lower price, of course, means lower property taxes. Barring a legislative reversal of Proposition 13, buying commercial property now could mean lower property taxes for as long as you own the property.
The economy is showing modest improvement, but 2012 probably won't be a breakout year, so business owners need to remain very cautious. Still, this may be the time for successful businesses to expand and be ready to handle the business that will come when consumers have more confidence and before interest rates, property values, and property taxes begin to climb.
Despite uncertainties, economists predict growth in business revenue in 2012, as fears of job losses decline and consumers gain confidence. Travis Credit Union is ready to do business loans of all types and save you money with competitive rates, lower fees and business-friendly policies such as no pre-payment penalty on business loans. Other lenders use pre-payment penalties to prevent refinancing and keep interest rates high. Because we don't charge a pre-payment penalty, small businesses with loans from Travis are able to save money by taking advantage of lower interest rates or by making principal pay downs when they have periods of higher profits.
If you're tired of paying high fees and putting up with bad service, switch to Travis Credit Union and save with our Free Business Checking or Free Non-profit Business Checking accounts. We also offer Business Bill Pay, ACH payments, tax payments, merchant card services and all types of small business and SBA loans at competitive rates.
Isn't it time to grow your business with a business loan from Travis Credit Union?
SBA preferred lender
Are you looking for a loan to start-up or expand your business? Do you need a business line-of-credit? Are you wanting to buy commercial real estate or just refinance your existing commercial property?
The myths of SBA loans:
Myth: The SBA is the last resort.
Myth: SBA funds loans with government money.
Credit unions and banks make the loans according to SBA guidelines. The SBA provides a guaranty to partially reimburse the lender if the borrower defaults.
Myth: SBA loans take forever to get.
It is typically a six-week process if the borrower has their financial information and business plans in order.
Myth: You'll get buried in paperwork.
The paperwork is pretty much consistent with what any business lender would ask for.
Myth: You need a Ph.D. to put together a business loan application.
We can quickly tell you what is needed.
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