How Can Commercial Loans Boost Your Business
One has to learn more about commercial loans and know that this service can be utilized to purchase business premises like commercial building. Commercial loans can be used by any business minded person to finance new or an expansion of present business.
Be informed that these different commercial loans lender would process commercial loans in various ways. The first thing you have to do is to pre-qualify for commercial loans, for this is a determining stage to know how much you can afford to borrow and which program of commercial loan would suit your needs.
Considered as the biggest manner of financing business projects are commercial loans. To provide you with a commercial loan, your present income and debts will be reviewed by the loan lender, with the aid of a loan officer who will review your application.
Take note that a commercial loan lender will take into considerations some factors about you and your business, and these are credit history, reason of the loan, collateral, ability to pay and your investment in the business.
Documents like loan request, business plan and personal financial statements will be gathered as you prepare to apply for a commercial loan.
Any commercial loan lender will need to feel secure that the money you will borrow will be invested in a commercial plan, thus your loan request will need to state the amount of loan you are asking, how you will make use of the funds, and your amount of working capital on hand.
A business plan is very crucial point if the commercial loan will be used to start a new business. Thus the plan should include a projection of cash flow for the first 24 months, where information presented is clear and concise, since the feasibility study will be a basic factor if to approve your commercial loan.
If the purpose of the commercial loan is for an expansion of the present business, then your business profile or personal financial statements will be required. Among the requirements you should present under the personal financial statements are your present debts balances, payment schedules, maturity and collateral used to secure your loan, and this will hold to the person who owns 20% or more of the business.
Note that it would take around 1-5 days for a decision to come up regarding your commercial loan. Other information may be required during the processing of your loan, and you can ask the help of a commercial loan broker for your loan application in sending out to several lenders.