It’s not always easy to obtain commercial loans, especially if it’s your first time applying. However, with these tips you can easily and quickly get approved for your commercial loans in no time!
When it comes to securing commercial loans, there is a lot to understand and a lot of different options out there. You may be asking yourself how you can ensure you get approved for the loan you need — when you need it. Securing private money is one way to go about obtaining the funding you need. This is the route to take if you always have the funding you need or you can seek the assistance of a non-bank institution such as a personal investor for the funds you are requesting. Working with an investor can give you the flexibility to create your own terms when it comes to your financial documentation as well as your repayment schedule.
Another option is to seek funding from the seller – i.e. if you are looking to obtain a building or company, the seller of the company has the option to provide you with funding to make the purchase of the building or company, etc. This is another non-traditional bank option that will still requirement documentation of the agreement to protect both parties and also should spell out the repayment schedule for the commercial loans in no uncertain terms.
It’s also important to be aware of some of the risks of securing commercial seller financing. Sometimes an arrangement like this can results in very high interest rates that make paying back and off the loan quite difficult. Before agreeing to this type of loan agreement, it’s crucial to ensure you’re in agreement with the terms and that they are reasonable enough to make it a win-win situation for both parties. When it comes to seeking a private investor, it’s also a good ideas to do all your checks and balances to make sure the investor and you come to agreeable and reasonable terms and that all parties are held accountable for their end of the partnership.
Having your finances in order before seeking out lending options is a good idea.
The more prepared you are prior to searching for financing lenders, the easier time you will have going through the application and approval processes. Prepare your business plan, get your financial documents in order, have your credit score accessible and make sure you are prepared to share any collateral that you may need to put down to secure the loan.
Things to know when selecting to leverage a business line of credit as commercial loans options.
Leveraging a business line of credit is another option to consider when looking to secure financing for your business or company. This is a good way to establish creditability and secure funding. So before you seek a loan, remember that you have lots of options beyond the trying to get approval from a traditional or conventional financial lending outlet.
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.
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