Commercial lending is a much different landscape than consumer lending. Knowing a few tips about the lenders and the process can greatly improve your chances of getting a loan.
Appling for commercial lending is a long and often arduous process. The dollar amounts involved are rather substantial and that makes the approval criteria and process much more challenging. Lenders are interested in finding borrowers who will successfully repay their loan and the interest associated with it so that they are making their money. Understanding the lenders point of view and working toward that goal with them can make your loan application process much less stressful and difficult.
It is never a bad idea to keep your options open. Having a rapport with a few lenders is always a great plan. Investing the time to meet with lenders, understand their criteria for lending and just chatting with them about your potential needs will lay the ground work for the day that you do submit a loan application.
It is also wise to think of the lenders that you have relationships with as you would any other vendor. In this case the vendor is supplying you with money but that is after all what a service provider does. It is not dishonest or disrespectful to speak to several lenders for the same loan. You are shopping for the best deal and that is simply smart business.
The only way that you can make a mistake when creating commercial lending relationships is if you are not completely honest with the lenders. You are wasting your time if you are not honest in the information that you are providing about your business and yourself. The information and advice that you are getting will be tailored to the information that you give the lender. And if that information is false then most likely they will not be providing you will accurate or useful tips, information or processes.
Make the Right Impression
Commercial lending is a numbers game and the best credit score and credit history will get you the lowest interest rate. But there can also be a little grey area. This is where the lenders opinion of you and your business comes into play. You want to be honest but also paint the most impressive picture that you can when telling your story. Promote your strengths and successes as well as your goals and how you plan to attain them. Another way to impress a lender is to submit a completed loan application package that looks professionally prepared. Be certain that all of the needed documentation is included and that the format is easy to understand and follow.
Focus on Collaboration
Both you and your lender have a great impact on the outcome of your loan application. By investing your time and effort in the process and application preparation you can greatly improve the outcome. Honesty and professionalism will get the attention of your lender and could be that small difference that convinces your lender to approve your loan application.
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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