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TL;DR: What is the core characteristic of a term loan? It offers structured repayment over a fixed period, ideal for planned investments.

What are term loans and how do they benefit businesses? Term loans are business loans characterized by a fixed repayment schedule and a predetermined end date. Unlike revolving credit, these tend to be long-term business loans, making them best suited for projects where you have clear financial projections and confidence in your ability to meet consistent monthly payments. How can I learn more about long-term business loans and their suitability for my venture? Contact-Us for detailed information.

TL;DR: What is the primary purpose of short-term business loans? They address immediate financial needs with quick funding and shorter repayment periods, usually under a year.

What distinguishes short-term business loans from other financing? As you would expect, short-term business loans are designed for immediate needs. ‘Short term’ in this scenario means they have a term of a year or less and are quick to fund. Unlike long-term financing, one important thing to consider is that interest rates for short-term business loans will usually be higher, as you’re likely to pay more for the speed and flexibility of the product. What are the benefits of short-term business loans for urgent cash flow? Get-in-touch-with-our-team-via-phone-or-email-for-tailored-support to discuss your options.

TL;DR: Bridge loans provide short-term, rapid financing to secure a care home acquisition quickly, often used before long-term financing is finalized. Unlike a commercial mortgage, which is a long-term solution, bridge loans offer immediate capital, making them ideal for time-sensitive purchases or to bridge gaps in funding. They are typically secured against the property and have higher interest rates due to their short duration and speed. This financing allows you to acquire the property and then arrange more permanent funding, such as a traditional commercial mortgage or sale and leaseback, at a later date. Need guidance on this fast-paced option? Contact-Us to discuss if a bridge loan suits your strategy, or Get-in-touch-with-our-team-via-phone-or-email-for-tailored-support.

TL;DR: Mezzanine finance combines debt and equity, filling the gap between senior debt (like a traditional mortgage) and the equity contribution, useful for larger care home acquisitions. Unlike a commercial mortgage, which provides senior secured debt, mezzanine finance is a subordinated debt that often includes an equity kicker, such as warrants or options. This hybrid structure is particularly useful when significant capital is needed beyond what a primary lender is willing to provide, allowing for a higher loan-to-value ratio without diluting immediate ownership significantly. It’s an effective way to leverage an acquisition, though it typically comes with higher costs reflecting its higher risk profile. Explore this complex financing solution by getting in touch. Contact-Us for expert advice on structuring mezzanine finance for your care home acquisition needs, or Get-in-touch-with-our-team-via-phone-or-email-for-tailored-support.

TL;DR: A sale and leaseback involves selling the care home property to an investor and then leasing it back, freeing up capital while maintaining operational control. Unlike a commercial mortgage where you retain ownership and repay debt, this option allows you to unlock 100% of the property's value as working capital for acquisition, expansion, or refurbishment. The care home business continues to operate without interruption, paying rent instead of mortgage payments. This can be an attractive alternative for businesses seeking to reduce their balance sheet debt and reallocate capital towards core operations or further strategic investments within the care sector. Considering this capital-efficient strategy? Contact-Us for a detailed consultation, or Get-in-touch-with-our-team-via-phone-or-email-for-tailored-support.

TL;DR: Private equity or venture capital involves investors taking an ownership stake in the care home business, providing significant capital for acquisition and growth in exchange for equity. Unlike a commercial mortgage, which is a debt instrument with fixed repayments, this approach means investors become co-owners, sharing in profits and losses. It’s often considered for larger acquisitions or when there’s a clear strategy for growth and value creation, where investors bring not just capital but also strategic expertise. This alternative can provide substantial funding without increasing debt, but it does mean giving up a portion of ownership and control. Interested in exploring equity investment for your care home venture? Contact-Us to connect with specialists in M&A financing for the care sector, or Get-in-touch-with-our-team-via-phone-or-email-for-tailored-support.

TL;DR: Contigo small business loan costs vary by loan type, amount, and term, with competitive interest rates starting from a low monthly percentage. The specific costs and interest rates for a Contigo small business loan depend on several factors, including the loan type, the amount you borrow, and the repayment term. We are committed to transparency, ensuring you clearly understand all fees and charges upfront. Our loans are designed to be competitive, with rates starting from as low as 0.8% per month. For a detailed breakdown tailored to your specific business needs, get in touch with our team via phone or email for tailored support.

TL;DR: Secured Contigo loans require collateral for potentially better terms, while unsecured loans do not but often require a personal guarantee. The primary distinction between secured and unsecured Contigo small business loans lies in the requirement for collateral. Secured loans are backed by specific assets, such as property or equipment, which the lender can claim if the loan is not repaid. This collateral typically allows for lower interest rates and potentially higher loan amounts due to reduced risk for the lender. In contrast, unsecured loans do not require collateral but often involve a personal guarantee from the business owner. To determine which loan type is best suited for your business's financial situation and risk profile, please get in touch with our team via phone or email for tailored support.

TL;DR: While a strong credit profile is beneficial, Contigo evaluates a range of financial and business performance factors beyond just your credit score. A strong credit profile generally indicates lower risk and is beneficial for loan applications, though the exact definition varies by rating agency. However, at Contigo, your credit score is just one piece of the puzzle; it is usually insufficient on its own to determine eligibility for a small business loan. We conduct a comprehensive assessment that includes your overall financial history, business performance, and stability. Lenders, including Contigo, primarily look for a healthy business with no defaults, outstanding County Court Judgments (CCJs), and evidence of steady revenue from a solid customer base. For a personalized assessment of your business's loan eligibility, please get in touch with our team via phone or email for tailored support.

The main thing lenders want to know is if your business is healthy. This includes checking if it has defaulted on debt, has any outstanding County Court Judgments (CCJ), and has a solid customer base with steady revenue.

TL;DR: Even with a less-than-perfect credit history, Contigo offers options for securing a small business loan by focusing on financial health, collateral, or exploring co-signer possibilities. Securing a small business loan with a less-than-perfect credit history can be challenging, but Contigo aims to provide viable solutions. Here are some strategies to help improve your chances:

• Review and improve your credit score: Before applying, carefully check your business and personal credit scores to identify specific areas that can be enhanced.
• Strengthen your business finances: Demonstrate to lenders that your business is profitable, stable, and has a strong financial foundation with consistent revenue.
• Explore secured loan options: If you have valuable assets, offering them as collateral for a secured loan can significantly increase your approval prospects.
• Consider a co-signer: Bringing in a co-signer with excellent credit can make lenders more willing to approve your application, though remember they share equal repayment responsibility.
• Engage with Contigo's experts: For personalized guidance, get in touch with our team via phone or email for tailored support.

Keep in mind that acquiring a loan with a less-than-perfect credit history may involve higher interest rates. It's essential to weigh your options carefully to avoid further financial strain. You can find more general information in our FAQ section or the Contigo Support Center.