Choosing the right commercial lender can make a huge difference in the success or failure of your first commercial loan application. Implementing these tips can guide you to making the best choice for your business.
When you are preparing to purchase your first commercial property, you will invest a lot of time in learning about the process and about your options for a potential commercial lender. It is critical that you commit to this process and remember that one size fits all does not really apply to commercial loans. You need to select the commercial lender who will work best for the type of loan that you are seeking, the loan amount that you are seeking and one who works with businesses in your field.
It is important that you know what you are looking for in a commercial loan as far as the terms and size of the loan. If you are seeking a small first time loan then going to one of the larger national chain banks might not be wise. You are more likely to be approved for a loan from a smaller local or regional bank. Those lenders are more interested in smaller loans from local businesses. You will also find that a local commercial lender could be easier to work with as you traverse the path of your first commercial loan. You will have a much better opportunity to work one on one with a loan officer to complete the application process.
As you begin to speak to different lenders you will also want to inquire about their loan qualifications. In some cases you might find that a lender is only willing to work with a borrower who has been in business for more than 3 years. In other cases you might find that a lender will shy away from borrowers in a certain industry as they feel that their market is very volatile and that makes them a high risk. Knowing what each lender requires will save you time and money applying to a lender who really is not interested in your business.
Trust Your Gut Feeling
Understand that whichever lender you select, you will be working closely with them for quite some time and also providing them with a great deal of information about you and your business. For these reasons it is important that you feel as though you can establish a good working relationship with the lender. Think of the lender as you would any other business associate, service provider or colleague and find a lender that suits your style of business and that you feel comfortable working with long term.
Invest Your Time to Find Success
Getting a commercial loan is a long process and one that can have a great impact on the future of your business. Be sure that you are completing your due diligence. Not only do you need to understand the process and the qualification but you also need to understand the terms of the loan that you are signing. Investing time to gather this information will help you to be more successful in the loan process and in the future.
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.