How to Get a Business Loan

Although the process is not always easy, it is far from impossible to get a business loan. Understanding the process will help you to find success in your first application.

Getting a business loan is not as easy as it used to be but that does not mean that you will not be able to get a loan to help you reach your goals. Understanding the process and being prepared can offer you a great deal of peace of mind as you work your way through the process. The first step in being prepared is beginning to seek a loan before you actually need it. Start by building relationships with commercial lenders, learning about the commercial loan industry and educating yourself on the process that you will need to follow when you apply for a loan. During your planning stage, you should be determining how much money you will be asking for and learning which lenders are servicing loan requests of that size.

The preparation stage is also when you need to evaluate your current financial health and apply it to the criteria that lenders are looking for in a borrower. You will need to have a credit score of at least 650 but 700 would look more favorable. Having a score closer to 800 will all but guarantee your business loan approval. Your personal debt to income ration should also not exceed 33%. Also understand that time in business is important. Two years old is still considered a fledgling business and represents more risk than a more established company.

As you begin to pare down your list of potential lenders, evaluate them as you would any other service provider. Selecting a lender who specializes in loans of a similar size and type is always wise. You will also want to consider the lenders proximity to you. A local lender is often willing to assume a slightly higher risk that one that you have found online or are working with remotely.

Complete the Documentation

There is a substantial amount of documentation required for any commercial loan. You will need to present 3 to 5 years of financial statements, bank statements and taxes. In addition you should also be ready to submit your personal financial information if your business is less established or has very few assets. All lenders are going to need copies of this basic information and having it complied and ready to present will eliminate a lot of your stress when completing applications.

Submit and Be Attentive

It is not uncommon for lenders to need additional documents or clarification on the documents that you submit for a business loan. You can ensure that the process remains on track by maintaining communication with the lenders as they are reviewing your application. A call or email once each week to inquire about the status of your application is not being demanding or pushy. It also provides the lender with the opportunity to ask any questions that may have arisen. Being prepared and knowing that the process takes a month or more to complete will allow you to relax once your applications are submitted.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

How to Improve Your Chances for a Business Loan

Getting approved for a business loan is not as simple as many business owners think or wish it to be. But following a few tips can greatly increase your odds of getting the loan that you need.

The turbulent economic times of the past decade have made it more difficult for anyone to get a loan and especially businesses. Due to the fact that a business’s financial success or failure is more directly connected to the economy than the finances of a person, getting approved for a business loan has become more difficult. Changes in the economy and political climate can cause the business world to fluctuate quickly and drastically. So it is more important than ever that you make every effort to impress potential lenders in every phase of your application process.

Knowing that you are entering into a rather lengthy process, it is critical that you have a working knowledge of commercial loans and the processes and documents that you will be working with. Gathering information will allow you to prepare your documents as well as your frame of mind throughout the loan application and review. This is also a good time for you to check your credit score and address any issues that you might find. Having a score of at least 700 is pretty much a must and scoring closer to 800 will greatly improve your chances of getting the nod for a business loan.

Documentation and Detail

Understand that your lender is going to determine a lot about you and your business from reading your application and speaking to you for just a few minutes. Being able to use that precious time to create a professional image is critical for your loan approval. Having a detailed plan showing how you will use the money that you are borrowing, how it will help you to make money and how you plan to pay back the money are all important items to communicate to the lender. In addition, a professionally compiled packet of documents shows the lender that you have invested time and effort into creating the packet and that you are serious about your work and the loan that you are requesting.

Introduce Your Team

Growing any business takes time and a lot of work. Doing everything your self can feel efficient to you but others might not see it that way. Presenting your management team and professional advisors can also increase your chances of getting the business loan that you need. A truly wise person knows what they don’t know and is willing to surround himself with smart people who can help him in those areas. Having a mentor or advisor shows that you are smart enough to seek the advice of seasoned professionals. And including the experience of your management team in the loan application process allows the lenders to see that you have designated professionals to assist with all of the management aspects of your business. The strength of a team is always greater than that of an individual and will increase the odds of success for your business.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Searching Online for a Business Loan

When it comes to getting a business loan, there’s more than one way to secure one. In other words, gone are the days of traditional financing methods i.e. the next phase is all about getting loans online.

If this is your first looking into online loans, it is understandable that you may feel like a fish out of water. But, much like it is more convenient to open a checking or savings account online, versus going to a bank these days, applying for a business loan online often takes out a lot of the legwork. For instance, there are dozens of reputable lenders that offer quick solutions to a person commercial or business financing needs.

So, at this point, you may be wondering if it is simply out of convenience that online lending became available? Well, the truth is with the ever-changing economy traditional lenders or rather banking institutions have become increasing wary of lending to small business. Yet, what many larger banks seem to not realize is that any major corporation once started out small and in order to have our economy grow leaving small business to fend for themselves is simply bad business for everyone.

Thus, with that being said, if you own a small or smaller business and are looking for a business loan then it is your best interest to check online lending. Of course, online lending is not for every business, these particular lenders still look for specific requirements that generally newer small businesses, i.e. businesses that have been open for less than a year, simply are unable to meet. If your business has been up and running for more than a year, however, then there is really no reason not to explore all your lending options.

Online Lending and Traditional Lending—The Differences

Besides the online lenders being more flexible with small businesses, they typically require or rather factor in different things than traditional lenders do. For instance, online lenders will take into consideration a company’s social media presence, payments to vendor and so on. Clearly, traditional lenders do not factor these things into their final decision to approve a person for a loan. Moreover, online lenders tend to quickly approve loans, sometimes same day, in comparison to traditional lenders. Ultimately, these are just a few key differences, but, you can see how online lenders often appeal to small businesses.

How to stay Safe and Secure

Lastly, if you are still mulling over the idea of applying online for a commercial loan, it may be because you have safety and security concerns. Well, this is perfectly normal. In order to ensure that you are dealing with a reputable online lender, of course, it almost goes without saying that doing your research will save you a lot of trouble down the line as well as help you determine if online lenders are truly right for you. Thus, if you are looking for a commercial loan that ranges from $5000 to $500,000 over a 3-36 month period quickly and without a lot of hassle, do your research and get your commercial loan.

Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:     (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
 

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.









          

Technorati Tags: business loans,business loan

Is It Time for a Business Loan?

You probably know several successful business people who decide it was time for a business loan one day and the next day their business took off. You may also know people who decided it was time for a loan and absolutely regretted it down the line, so how do you really know when it’s time?

You would be surprised at how many people in your life will have an opinion on you securing a business loan. So who do you listen to? How do you know the time is right? Well, despite having probably dozens of people to discuss these things with, the real answer is you need to know when the time is right for you and your business, which is often easier said than done. Moreover, it is important to remember that the people you should be listening to are those with your and your business best interest in mind, which may or may not be other people in your industry.

Clearly, the best option is to speak with your potential lenders, your business attorney and your accountant since this is not an everyday kind of decision. But, nevertheless, you more than likely came here for some clear cut guidance so let’s get to it then. For starters, the best way to know if it is time for a business loan is to ask yourself, why you are even considering securing additional financing in the first place? Are you not sure? Well, then back away from the application.

Typically, there are at least six good reasons to get additional financing for your business and they include your company or business is ready to expand its physical location, you want to start actively building credit for the future, you are in need of additional equipment for your day-to-day operations, you are interested in purchasing more inventory, your business needs fresh talent or maybe you have stumbled upon a business venture that you simply cannot miss as the benefits will ultimately outweigh the incurred debt. Ultimately, this is when it is in your best interest to seek additional financing. Of course, that’s not to say these are the only reasons but rather the most beneficial reasons.

Staying Successful

Deciding it is time for a commercial loan or more financing is obviously a big step that if taken wrong can make or break a small company. Thus, it cannot be stressed enough that in order to stay successful as a small or larger business you need to take your time with this decision. Remember, the main and only goal of securing additional financing for your business should be improving your bottom line. If you can clearly see that this financing will help you achieve that goal then by all means full-steam ahead.

Reap the Benefits and Risk Less

With that being said, you still want to ensure that you will have the ability to pay back your secured additional financing when the time comes regardless of the outcome. So, be confident in your business decisions but remember to always be thinking long-term.

Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:     (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
 

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.









          

Technorati Tags: business loans,business loan

The Pitfalls of a Short-term Business Loan

Are you thinking about getting a short-term business loan in the near future? If the answer is yes then it’s important to know just you are getting into.

Practically, every business at some point or another needs additional financing or a business loan. But, what many business owners simply do not realize is the important differences between short-term loans, standard bridge loans, hard money loans, etc. In fact, many business owners often go into the situation relying solely on what their potential lenders tell them or have promised; this, of course, can lead to confusion down the line as lending, at the end of the day, is also a business.

Clearly, you do not want to be one of those business owners who secure additional financing without all the facts i.e. you will do the necessary research to find the most advantageous business loan you can. If you have already done your research then congrats, you are one step ahead of the game. But, ask yourself this— are you sure that you know everything you need to know about short-term financing for businesses? The truth is, obviously, you cannot know all there is to know about anything. But, that’s why the question asks if you know everything YOU need to know. In other words, do you have enough information to make an advantageous and informed decision that is right for you as well as your company? Do you understand the pitfalls of short-term financing? Well, these are things you absolutely need to know in order to move forward with this particularly kind of business financing.

Of course, if you need financing sooner rather than later and do not necessarily have loads of time to spend comparing offers, interest rates, and terms then the very least you can do is become clear on the potential pitfalls. Thus, without further ado, let’s go over the major pitfalls of short-term loans for businesses.

The Real Deal on Short-term Financing

The major pitfalls of short-term financing are unsurprisingly the over-the-top interest rates and ultimately how this extremely expensive financing will affect your company’s bottom line. For example, you will see fairly quickly how needing even an extra month or two can significantly impact the amount of interest you will end up owing i.e. a loan of $50,000 at a three percent interest rate not only will run about $1,500 in interest but with that extra month or two the number quickly increases. Moreover, many lenders often penalize or add additional fees for extensions. In regards to your company’s bottom line, if for whatever reason you are unable to meet the terms or obligations of your short-term loan you can very easily put your business and its future at risk.

A Little Business Advice

Ultimately, if you are the position to secure a short-term loan and you are fairly positive that you will be able to cover future terms or obligations in spite of very high-interest rates and you have explored all your options then this kind of financing may be, in fact, right for you.

Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:     (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
 

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.









          

Technorati Tags: business loans,business loan

When is a Business Loan Right for You?

Are you considering a business loan, but aren’t quite sure if the timing is right loan for your business? If so then you’ve come to the right place to help you figure it out.

The hard truth is that if you are a large business, in many ways, the world of lending is your oyster. However, if you are a small business not only do you have fewer lending options you probably do not have a clue of where to begin or in this case when to begin. Well, that’s okay. Statistically speaking, most small businesses (newer businesses) or rather more like only half of small/ newer businesses in the US apply for financing. So as you can see you are not alone in be wary or fully apprised when it comes to applying or securing a business loan.

Moreover, you are not alone in your uncertain quest for the right business loan because when asked most small business owners admitted to believing that financing was just too hard to find due to the mainstream or traditional lending options available. Well, the truth is they are not completely wrong. Small business owners do, in fact, have a harder time of securing financing generally if they do not explore non-traditional lending options or if they do not truly take the time to understand what’s required of them since they are small business borrowers.

In other words, if alternative lending options are not your thing per se and you are still looking for additional financing then it’s time to understand your eligibility as a small business. In general, you should also decide what are your top priorities are i.e. money today or better terms and a lower interest rate. By simply doing these two things, you can put your small business in the best position in the short-term as well as the long-term. With that being said, let’s go over what it means to be eligible for additional financing as a small business.

Understanding Your Eligibility

Unsurprisingly, most traditional lenders and alternative lenders look for specific factors when approving a business applicant such as your revenue, the age of the business, your personal FICO score, how you plan to use the additional financing as well as the amount you are requesting i.e. the size of the proposed loan. One factor, in particular, that many small business owners tend to not give too much weight to is the age of the business. But, in reality, this factor matters and it matters a lot. Generally, most lending institution will offer you better options if your business has been operational for more than two years.

Timing Is Everything

Thus, it almost goes without saying that the best for securing additional financing is when your business has been successfully operating for at least two years. Are you curious as to why two years is the lucky number? Well, you shouldn’t be. It is because a significant number of small/newer businesses fail in the first two years and even more fail in the first three. Thus, you can see not only is it your best interest, in general, to getting your footing as a business it is also advantageous when it comes to additional financing.

Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:     (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
 

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.









          

Technorati Tags: business loan,business loans

Common Issues that can keep you from securing a Business Loan

Are you interested in securing additional financing? If the answer is yes, then it is absolutely vital to make sure that you have all of your ducks in a row before you begin the application process.

Securing a business loan involves careful planning, to say the least. You need to be clear on things you need, things you want, what assets you have and how you are going to pay it all back regardless of whether or not your business, itself, survives. Thus, long story short, getting a business loan is more than filling out an application.

In fact, even before you start filling out applications, you should make sure that you’ve successfully avoided any serious missteps or common issues to ensure that you are denied down the line. For instance, many business owners, much like regular people have a few skeletons in their closets. If your business has a dark past for some reason like say you had trouble paying past debt, you better believe that, in many ways, securing your business loan just became a pipe dream.

Similarly, having a lack of cash flow is also another non-starter for most lenders. Unsurprisingly, your cash flow tells your potential lenders how much cash you have available to, wait for it, pay back a loan. Of course, if you have tons of cash on hand, you may be asking yourself, why apply for a loan in the first place? Well, as you very well know, loans help businesses of all sizes accomplish a variety of projects, ventures, and business upgrades. Nevertheless, you should always ask yourself if you and your business are actually able to afford additional financing.

Other Issues that scream Danger beware Danger

Having bad credit and a lack of cash flow aren’t your only concerns, you also need to make sure that you have a clear plan for the future and that your head is not in the business clouds sort of speak. For instance, if you approach a lender will a careless or hopelessly romantic attitude about your business plans or your plan for additional financing you better believe you are going to turn off some reputable lenders. So, again be clear about your projected earnings, your plan for business and be organized—nothing is worse than not having the right documentation on hand or appearing unprepared i.e. being disorganized. Other common issues that can easily derail your additional financing plans for your business include being too picky or reserved when it comes to your lending options as well as letting a rejection impact your plans ( at least one of your loan applications will be denied that is the nature of business; remember you cannot be everyone’s cup of tea).

Make Your Dreams come true

At the end of the day, you can easily address these above-mentioned issues with just a little elbow grease and once you do remember it is still important to have a strong pitch prepared for your potential lenders and to be passionate about your future plans when dealing with lenders. Lastly, if you are a small business or a newer company take your time making this decision as it is everyone’s interest to not bite off more than you can chew.

Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:     (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
 

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.









          

Technorati Tags: business loan,business loans