There are many factors to think about when you are contemplating applying for a Arizona commercial loan – from what type of loan you need to the best financial institution or lender to help you get that loan. Before sitting down with an expert, there are a few things you should have prepared.
A business plan is an important element that banks and lenders look to when reviewing a commercial loan application. Ultimately, there money is going to be backing this plan, so they want to make sure it’s indeed a solid one that has legs. Spend some time putting together a well researched and detailed business plan that outlines your past successful approaches, and exactly how to plan to take the business to the next level – with the help of this loan, of course.
Proof of a steady cash stream is also key to be able to show the lender – how do you plan on making a return on the investment… so that then the lender will see their return on investing in you. Being able to showcase how you plan to make revenue for your business will go a long way to ensuring you can repay the commercial loan. Most organizations will want to see you up and operating within a year.
Last but certainly credit score is of course a big one. Banks want to see your history and feel confident that you will be able to wisely and properly manage the finance that they will in essence be entrusting you with. If you are just starting out and don’t have much of a credit history established, don’t be afraid to build a little credit in order to start establishing a base of good credit – ensuring you don’t go too far into your limit.
If you’re credit score if not where you would like it to be, you can actually improve it fairly quickly so you can show lenders in good faith that you are working to repair it. This can go a long way when it comes to how lenders feel about taking on your loan application.
It’s important to maintain the credit card balances (you should aim to get your balance to 30 percent or lower), always pay on time or early and pay in excess of the monthly payment amount due, if at all possible. If you have old debt that you have paid off, resist the urge to have it removed from your report – it actually shows you have the ability to pay off what you owe, which is a good thing in the eye of the lender.
When it’s time to consider a commercial loan for your business, ensuring you have your affairs in order is important.
Before applying for a loan, put together a solid business plan, ensure your credit is as up to date as possible with the big three credit bureaus — Equifax, Experian and TransUnion — and be prepared to prove how and when you will be able to pay back your loan. Preparing documentation is no place to skimp on time even if some tasks seem daunting or tedious – your efforts will be rewarded once you receive loan approval!
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.
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