Don T Believe The Hype When It Comes To Commercial Lenders

Category: Finance.

Most people are familiar with applying for loans, particularly home loans. The two subjects are simply different and handled differently.

The world of commercial lending, is like visiting, however another planet. One of the keys to successfully obtaining commercial financing is knowledge. Here are some tips that can get you over the hump. The more you have, the more likely you are to get the money you desire. Don t believe the hype when it comes to commercial lenders. If they promise a 30 day period to work your loan, realize it is going to take much longer. Simply put, they want your business and will do practically anything for it.

Apply early! The loan to value of most commercial loans is rarely more than 75 percent in the best of cases. Be prepared for the cost of the loan. This means you are required to come up with a down payment of 25 percent and the money for closing. Ask to see if the lender will require the original appraisal as well. If you are refinancing a property loan, make sure you have the critical documents the lender is going to want to see- the payoff amount, the survey and title.

When applying for a new loan, the sales contract for the property must be complete. This means you need to be as prepared as possible before submitting your docs. You cannot get" pre- approved" when it comes to most lenders. Understand prospective cash flow positions. This is a quick trip to bankruptcy and financial ruin. Many borrowers make the mistake of squeezing into a loan only to realize the property doesn t really support the financing. If this is your first financial investment, the small business administration should be a place you visit.

Definitely take a trip and talk to the reps there. This is one of those rare government agencies that actually helps small businesses. Unlike residential lending, there is a lot of wiggle room in commercial lending. As a result, shop your loan to many lenders. This means that a rejection with one lender does not mean another will come to the same conclusion. It is tempting to brush over the problems in your finances. Even if you get it by the lender, it can come back to haunt you.

Don t. If you later have financial problems, you can be the lender will be all over you trying to recover its financial output. The rule is simple. Appraisals are an area of confusion and unwarranted expense in commercial lending. The lender must order the appraisal. It will be worthless.

Don t let a broker or someone else talk you into paying for one not ordered by the bank. Just do it. What is the worst that can happen? Many potential commercial loans are not written because the borrower in question never applies for them! The lender can say no. Prepare correctly and have at it.

Oh, the agony.

Read more...

This Is One Of The Key Reasons That People Opt For Debt Consolidation Loans - Deanna Weary's Finance blog:

If you have a range of loans and credit that you have to repay each month, you re in good company.

Online Stock Trading Is All About Selecting The Best Stock Opportunities And Following Your Buy And Sell Signals - Finance:

There is no doubt about it, stock trading can be a risky business and one of your first steps must be to get acquainted with the various tools of the trade. You must be realistic and understand that becoming successful at stock trading can be a very tricky task, and is not for everyone.

There Are Banks That Will Customize Business Credit Cards To Fit The Pattern Of Your Cash Flows - Lawanda Sokolsky's Finance blog:

It may seem contradictory, but the use of business credit cards to pay everyday purchases of your business may actually help conserve cash or regulate cash outflows. The other benefit from good cash flow management is that it helps your maintain a surplus cash fund for your necessary capital investments for the future.