There are many requirements for commercial lending that are helpful to know when you are seeking a loan. Level 4 Funding breaks down the ins and outs of these requirements for you.
Getting commercial lending for your business can be an extremely helpful boost to starting your new business or growing your existing company. You can use additional funding for improvements, marketing needs or even a second location. This is a huge advantage to get ahead of your competition or become desirable to a new customer base. However, as you prepare to grow you need to be prepared to get the loan first.
One of the biggest requirements from a traditional lender is your business credit score and history. Credit should be in the 700s, but if you don’t have perfect credit, all hope is not lost. You may need to think outside the box when it comes to the type of lender you seek out, however. For example, private lenders, hard money lenders and short-term lenders may be your best bet. If you have some time before you need the loan, you can work on improving your credit score to try your hand at getting a traditional loan from a bank.
Not only your business credit, but your personal credit will be investigated so its important that it is up to snuff as well. You will need to share personal financial information such as annual income, credit score, loan history and more. You will need to have documentation of a lot of information such as past bank statements. The larger the loan, the more important this information becomes, so it’s a good idea to have all your ducks in a row prior to applying for a loan. If you have both stellar business credit and personal credit – congratulations! You are ahead of the game and your loan process with commercial lending should be smooth sailing.
How to avoid the disadvantages and pitfalls of getting a loan.
One of the pitfalls in obtaining a loan is more business or personal credit. Beyond taking the lengthy process of improving it over time, you can also secure a loan in other ways such as using collateral like your home or personal vehicle. There is a risk when you use collateral to secure a loan, however, so be prepared to take that risk.
The benefits of commercial lending for your business.
When you seek a loan, you can propel your business to the next level or get your new business off the ground. Having the boost of additional funding can make all the difference. Working with a professional loan officer can be very advantageous because they are well versed in all the requirements you will need – all the documentation, business plan information and more that will make the application process much smoother and simpler, ultimately leading to the success of your business growth and development. So make sure you find the right professional lender for you to ensure you have the best advantages.
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.