How to Know If Your Business Qualifies For Private Commercial Loans

Private commercial loans are a lot more accessible than credit provided through a bank or other type of traditional lender. Even better, there’s a good chance your business won’t have to do much to qualify.

When it comes to running a business, sometimes it pays to prepare for the worst. You never know when an major accident or sudden problem with a lease might upend your business, forcing you to find a new location or close your doors for good. This scenario demonstrates why it’s so important to assess your company’s ability to qualify for a business-saving commercial loan. Even in cases where banks or other traditional lenders are less than willing to extend credit, private lenders can still make capital for real estate investments available to your business.

What minimum qualifications will your company be expected to meet in order to work with a private lender? That’s actually one of the major advantages of working with a private lender. These terms are defined by the lender, who can offer a great amount of flexibility to businesses when it comes to taking out a loan. That being said, the more of these following qualifications you can check off your list, the easier it will be to get a private lender to agree to loan terms that work for your business.

Get Your Documents Organized – Even if private lenders are more flexible about how they do business than a bank, these lenders still want to see proof that your business will be able to keep up with its payments. That’s why it makes sense to gather any income statements, bank statements, copies of your current lease and financial projections your business may have access to in one place. Having this information on hand will make it even easier to work with a private commercial lender.

Invest In Appraisal – The old adage says that businesses have to spend money to make money. In some cases, businesses are also required to spend money to borrow money. This can be the case when applying for real estate financing. The process will go even smoother if your company is willing to pay for an appraisal of the property. This analysis eases many lender concerns about ]financing and can help your company better understand the value of their potential new assets.

Create Detailed Development Plans – The more developed the strategy is for your commercial real estate project, the easier it is to sell a financial firm on the feasibility of lending you the money. Your company should already have an detailed plan for real estate investments, so sharing that information with a private lender should be no issue.

Why Select A Private Lender To Finance Your Company’s Commercial Real Estate Investment?

Banks and other traditional lenders have extremely strict policies and guidelines when it comes to selecting who they loan money to and under what terms. Even if you are able to qualify for a loan, it may very well be under terms that are actually detrimental to the success of your business. That’s why private lenders and the flexibilities they offer are such a valuable resource.

Don’t delay in finding out where you can get access to the commercial loans your company may need in the future
It pays to know who to reach out to when your business is in a bind. The faster you can find a solution to a cash flow or a real estate problem, the faster you can get back to serving your customers.

Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:     (512) 516-1177 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. 

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