Making a commercial loan request is easy. All you have to do is go to a bank or a lending company and fill out their application form for a loan. The hard part is getting your financing request approved. Even with the recent recovery of the United States from the economic meltdown that occurred just a few years ago, the lending market, particularly the lenders, are still reeling from the heavy financial losses and are wary of investing money in a business start up or expansion. The only time they would cash in on a budding enterprise or venture is when bankers can safely say the investment proposes good yields.
But there is no really saying whether a an investment will pan out as expected or fizzle into nothing. As many business experts put it, every move you make in the business always carry a significant amount of risk. When applying for a commercial loan, the trick lies in convincing your banker that your project is worth investing. Doing that, however, is harder than it sounds.
Never for a moment think that just because you and some people you know think your idea will fly, a banker will also have the same view. If you want your commercial loan application approved, make your lending officers think your business IS going to fly. Here are some effective tips on how you can do just that.
Put yourself in the banker's shoes. Always instill in your mind that commercial loans are crafted to increase a bank's profitability. Simply put, it is all about the money for the banker and they are more than willing to throw money to a deal that will bring them even more money. Thus it is important that your business plans and designs will show bankers how much money THEY will be making if they do invest in your endeavor, which brings us to the next tip...
... prepare your financial documents. It is not easy to persuade a lending officer to grant you a commercial loan, even with your finances intact. They would want you to provide tangible documents that they can check and recheck to see if whether your financial standing can really handle the weight of handling a business. You also need to provide a business plan as well as income projections for the next 2 to 10 years, depending on how short or long the terms of the loan will be.
Shop for lenders until you find a good deal. Talk to, at the very least, five different banks and see what they can offer. Check out their financing solutions and see how clients rate their customer service. Never be too shy when you discuss your business projects with a banker. And also, never settle for what they say. ALWAYS negotiate until you are satisfied with the terms. Another thing, ALWAYS read the fine print, before you sign that dotted line.
Steve Sanchez is an author Commercial Loan. To learn more about Business Finance visit www.lendio.com
/20525.html
No comments:
Post a Comment