Commercial lending or loans often face challenges of immediate approval. Imagine you are an artist who sells small sculptures online. Now your clientele is big enough that you might need a shop or commercial space to setup your business. For that you need to get a real estate commercial loan to buy or rent the space. Here are 5 questions you should expect from the lender when you are applying for commercial loans:
How much investment you require? If you thought figuring out the required investment was easy, think again. It’s not just a number but a thorough working is required. From the rent of space to cost of equipment; from furnishing to buying raw material, all details matter. So before you get stuck with the wrong loan amount do your research.
Why do you need it? Evaluate each and every detail. If you think you have enough equipment and you just need space, go for the exact amount. Identifying reason for the accurate amount allows controlling your capital and investing it in right direction.
At what time, money is needed and would it be feasible for you to work with a certain portion? Some businesses cannot work without certain amount of investment but others can be operational with a smaller percentage of it and afterwards you can cover them down the line. So ask yourself again before getting a loan.
Do you have clean credit history? Lenders always want to play safe when lending you money. They will dig into your credit history to investigate if you are good decision maker with finances and what you have been doing wrong.
Can your business gain profits? If they are lending you money, they need to be sure that you are going to win the market. They won’t prefer working with typically old ideas. You need to work on feasibility and viability of your business. Plus, you need to look confident about it, if not; you are going to lose your commercial loan.
Get your answers prepared and you won’t be disappointed. If you do your homework right, you will know what you need and how big it should 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.