Not all of us are looking to become professional lenders and may not ever need to know anything about commercial lending, but if you are in the market for extra funding for your business, it is important to know the basics.
Obtaining extra funds for your business through a loan isn’t always easy. That is why the more you know about the foundation and the process of commercial lending, the better. Working with lenders can be a struggle and the more confident you are, the easier the whole process will be, from beginning to end.
There is a lot of evaluating that takes places when it comes to commercial lending. Credit is extremely important and your personal credit score along with any business credit score will be looked at heavily. Your credit scores say a lot about you and your business, especially your ability to paying back debt.
Your character is also often times looked at closely under a microscope. Just like with most things, especially in the business world, your character is going to weigh heavily on your loan offer. This is shown by how you have performed in the past with regards to your business and decision making. This is also where your personal credit score and business credit score will be looked at.
Commercial lending isn’t taken lightly and you will get more with an impressive credit score and background.
Along with your personal credit score and your business credit score, your other personal and business financial statements are evaluated. And it is important to include as much information as possible as it is will come in handy when commercial lending is needed. The more financial information you can supply, the better and the higher chances of approval. This is why being prepared at the very beginning of the process can help you avoid any denials.
The terms and conditions of commercial lending can play a role in approving or denying your extra funding request.
When applying for a loan, you want to make sure that you are strong in your request, but also flexible. Specific conditions might be brought up and the more you can come to terms with your lender and meet them in the middle to make all parties hapy, the better the entire situation will be. This is another way of proving your character to your lender. All lenders are looking for is proof that you will be able to repay back your loan in a timely manner. The more you can prove your ability to do so by providing excellent credit scores, detailed financial statements and a reputable character to go along with it, the better the outcome will be.
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
No comments:
Post a Comment