If you are like many borrowers, by the time you get to the point of being accepted for a Texas Commercial Loans, you are tired. It has undoubtedly been a long process, but your job is not yet done!
Once you have an offer letter, the hard part of the process is over. However, there is still work to do. Now you need to make sure that the terms and rates are what you want them to be. The important thing here is to be realistic. No one will take you seriously if you are asking for outlandish rates and terms. Get a competitive offer or two so that you have a baseline when you begin negotiating with your bank of choice. When seeking out the best scenario for your Texas Commercial Loans, having more information is always a good thing.
Another tactic that has been proven over centuries of negotiation, but is often forgotten, especially by small business owners, is to never take the first offer. There are a variety of reasons why people forget this tactic, including being fatigued by the process or being in such a crunch on their timeline, but it is critical. Banks often add in a small cushion to their proposed pricing. This gives them some room for negotiation. If you are too eager to sign on the dotted line for your Texas Commercial Loans, there is no reason for the bank to reduce this cushion.
If you prove to your lender that you are not only savvy by having other offers on the table and show them that you are not too eager by immediately jumping at their first offer, you will have a tremendous amount of leverage in your negotiations with them. Another trick that will assist you in getting the best terms and rates for your loan is to work on a banking relationship with your lender that will include many different financial accounts.
By reinforcing to the bank that you are considering either keeping your existing accounts there or opening up new ones, it will not only signal to them that you are serious about fulfilling your payments of the loan, but they also might be able to come up with a better offer for you if it is packaged with other accounts. This is most often the case with small banks and credit unions, ironically. To a smaller, local bank, the revenue that is possible various loans to local small businesses is incredibly appealing. If you couple this with business accounts, credit card offerings and investing opportunities, this presents plenty of opportunities for a small local bank to get their cut while still offering you excellent terms.
In fact, it is often a good idea to let lenders know at the outset that you are considering moving your entire financial suite to the institution that houses your Texas Commercial Loans. You might even get favorable terms at the beginning and be able to negotiate them down even further.
How can I best convince a local bank that my other accounts are worth working with me for an appealing Texas Commercial Loans rate?
Bring documentation! Do you process a lot of credit cards? Bring the statements. Do you already have a business checking account or business credit card? Bring statements showing the level of activity. Local banks will see the profit potential for them and will most likely be easier to negotiate with when it comes to your loan rates.
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.