If you are looking for a commercial loan to fund your business, it may help to know what lenders are looking for. Are you prepared to apply- and more importantly, qualified for approval? Here is what you need to know:
As with any type of loan, there are documents and requirements involved before funding happens. The types of things that the lender will require may also extend to information about your finances, as well as your company’s financials.
Business Credit Rating
Any credit lines or credit cards used for your company will also be assessed by a lender. Additionally, they look at credit and FICO scores, which is common.
You can expect lenders to look at the owner’s personal financial information when it comes to small business loans. They may want to know your credit score and credit history- in addition to information about the business financials. Defaults and liens on your personal credit history can impact eligibility and interest rates for your business.
Borrowing money to purchase a property? The lender will want to know all the details as this property likely is the collateral that guarantees your loan. If you want to borrow for a commercial real estate loan, remember that your company or business needs to occupy over half that is 51%- of the building.
Treat the loan application process seriously and prepare for it accordingly. The wheels can move slowly so it helps to have your ducks in a row when it comes to documentation, communication, and accuracy of the information that you provide.
If you want to improve your chances of being approved for a commercial loan, there are some things that you can do that may help. For example, go ahead and pay off any of your current debts to raise your credit score, if applicable. You can also offer the lender additional collateral, such as property if you happen to own any. Additionally, you may be able to negotiate a higher interest rate contingent on approval. Better yet, get a cosigner or investor.
Do you need money for your business? Learn more about your commercial loan and funding options. Talk to the team at DAL Commercial Capital today.