You have succeeded in starting your business. But to get it to the next level you need more capital. But before you start perusing what commercial lending opportunities exist, make sure you keep these five considerations in mind.
You did it. You started your business. The doors are open, and you are making sales, generating revenue, and most importantly—making a profit. Not every business makes a profit so have done something special by just doing that. But now you want more. A market exists for your product, but you are not equipped to take the next step and seize a large piece of said market.
But then you turn on your television and see all these commercials advertising companies that say they are searching for the next great commercial lending opportunity—is it you?. Hmmm…maybe it is time to give one of these places a call and see what they have to offer.
However, before doing so, there are a few tips and considerations you should keep in mind.
Be Aware And Be Open To Any Commercial Lending Options
When you are making money at your business, it is easy to sit back and rationalize that you could be making so much more if only you were bigger. It is easy to think all you need to do is find the right commercial lending company, get approved for a loan, and then you can expand. Then you can start living the high life.
But are you really ready for that? You may think so because everything is going great on the surface but what about the big picture? Before talking to a potential lender make sure you know exactly what state your business finances are in. They are going to get a good picture of them, so you might as well get one first. That way, if things are not as rosy as you think you can avoid wasting your time and theirs.
Once you find your finances are in good order, don’t feel as if you must go to a bank. Traditional loans have their place, but there are other options out there. The interest rate may be lower, but banks may try to get you to take more than you want. They make money by lending more of it and may say they can’t help you with the amount you want, but will at a higher one.
While it may sound great to have more money, you will have to pay that money back.
Don’t Be Afraid To Go Online
In today’s world, just about anything and everything can be found or even done online. Chances are that you will head to the internet to research potential lenders. So why not utilize one of the many online options to fill your commercial lending needs?
The interest rate will often be higher, but the process is so much quicker. If you can’t be approved for a traditional loan, there are many online options available for budding entrepreneurs like yourself.
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.