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Thursday, January 18, 2018

Reviewing Your Commercial Lending Options

search-smallThere are countless options and decisions to make when it comes to obtaining commercial lending. It may seem overwhelming and challenging, but if you take a step back and review all your options, it gets easier.

Starting a business or expanding your current company can be an exciting and sometimes difficult time. So making decisions towards your commercial lending options should not add to that stress. After all, lenders are here to help you get the best loan for your needs, with the best terms. It can be a win-win situation for you both so it’s always a good idea to work with a professional that you trust. First, here are some things you should review.

Your credit score – both personal and in business – matter. Regardless of some people that say it’s not important, it is to some degree. For example, for traditional lending institutions like banks, credit score and history are taken into serious consideration. For more alternative style lenders, such as a hard money loan or private lender, credit score might not be as crucial. However, it’s important to get your current credit score, know where you stand and be prepared to explain any “dings” of unfavorable marks on your history.

Another thing to consider or review is how long you have been in business. Many conventional lenders may be hesitant to work with a first-time borrower or a brand new start up. They are less likely to take big risks, so they are going to want you to be able to prove your business success strategies via past experience. Proof of revenue is also a factor you should review and be prepared to prove to your commercial lending professional. However, once again, alternative lenders may be more lenient when it comes to these factors and may not require you to have proof or an extended business history.

If you don't have any of these things, there is still one more thing that can ensure successful loan approval.

Having the collateral to back up the loan is like an “insurance policy” for the commercial lending outlet. Regardless of whether you have a super high credit score, extended business history or proof of revenue, collateral such as your home or personal vehicle can be just the thing a lender needs to review before your loan can be approved.

Be open to alternative options.

Not everyone has a perfect credit score – in fact most people don’t. So there is no need to stress about a 700+ score or a squeaky-clean history. You can still obtain a loan but you have to be open to non-traditional lending options. If you want to get your business up and running or to expand it to the next level, review all your options and have an open mid when it comes to non-conventional options. Seek out some various choices and then review them all to see which you think will be right for you and your business. Only you can decide what is ultimately right for you and what time of loan will be best 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
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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.

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