Commercial lending Texas is all based on a risk assessment. So investing some time to learn what your lender is looking for can provide a great return on your investment.
Knowing that commercial lending Texas is all about the risk that your company represents to a lender can make it easier to understand why the application process is so daunting. No one is going to walk into a lenders office and admit that they never pay their bills or that they are a poor business manager. So the lenders need to run businesses and their owners through a lengthy process to determine creditworthiness. But each lender might have different criteria and different motivation for making their decision. So taking the time to talk to each lender can afford you some very important information about the process and how you need to present yourself and your business during the application process.
Getting a copy of the application is a critical first step. This will tell you what information the lender wants. Read all of the questions and make a list of any issues or questions that you have about the application so that you can discuss them in person with a representative. Understand that some commercial lending Texas criteria will be fairly common but other criteria could be more obscure. All of the lenders will want to see financial reports, taxes and credit information. But some lenders might also be very interested in your industry, mentorships that you work with or other work experiences that you might have had. Providing that information can greatly improve your chances for approval.
Another key for some lenders is the length of time that you have been in business. If your company is new then providing a well-documented business plan can demonstrate your dedication to planning and growing your business. Other lenders might only be focusing on your Dunn & Bradstreet score. Know your number and understand that a score of 75 will almost certainly get you a loan.
Have Supporting Documents
Applying for commercial lending Texas is a long process and one that will require some effort and work on your part. Have documents to support the claims that you are making about your business. Show your long term profitability with several years of P & L sheets. Demonstrate your cash flow with years of monthly statements showing deposits. And have documents to show that you have gotten loans before and paid them off with no issues.
Tell Your Story
Some lenders are going to want to know more about you than just what the numbers can tell. If this is the case then be ready to tell the story of your business. Explain your motivation for starting the company and how you have grown it to the current point. Also give credit to all of the supporting members of your team. A well balanced management team will be less risky than a one man show. Take the time to get to know the lender and what they want to know to grant your request for a loan.
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.