4 Tips for Getting Commercial Loans

cat1Applying for commercial loans can be intimidating to say the least. But using these four tips can help to ensure the success of your loan application.

The process of securing commercial loans can be daunting. And for that reason it is critical that you be well prepared when you are getting ready to submit an application. The credit history of your business and possibly your personal credit history will be under scrutiny during the application process so be sure that you have everything in order on both credit reports. Verify that both credit reports are accurate and that you have no issues that appear on either the personal or business report. Also be sure that you have copies of your business and personal taxes for the past 3-5 years, your current bank statements, a current asset and liability statement and any lease or rental agreements ready to submit.

When you are preparing your request you will want to be sure to provide information to the lender about your business, the industry and the reason you are requesting the loan. In many cases your business plan will have outlines the projected growth of your business and this can help to explain your current position and how the loan is going to help your business grow. Think of your loan application as an introduction to you and your business. Be sure to make a good first impression on the lender.

Local banks are a great place to start your search for commercial loans. If your business is small or has not been profitable for the past three years then you are far less likely to be approved by a national lender. But a local bank will be more willing to learn about your business and consider taking a risk on you. Also speak to the local Small Business Administration office to learn which lenders might best suit your needs. The process of working through the SBA and a local lender might take longer but it could greatly improve your chances for a loan if you are willing to invest the time.

Look for Alternative Financing Options

Many small businesses are turning to alternative lenders to provide their commercial loans. These lenders have less strict requirements and that makes it much easier for a smaller or newer business to get approved. But be aware that along with the lower requirements comes greater risk for the lender. As a result, you might be faced with a higher interest rate or higher fee structure for your loan.

Have a Well Thought Out Plan

When you are requesting a loan you need to be ready to provide all of the information and documentation that the lender requests. Having the material ready shows the lender that you have invested your time and effort into planning and preparing for the process. It also demonstrates the responsibility that the lender wants to see when thinking about how you run your business and how you will make the payments on the loan. Making a strong and professional first impression will be a great way to start the relationship with your new lender.


Dennis Dahlberg
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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