It isn’t always easy getting a loan. Luckily, recent reports from Pepperdine’s Graziadio School of Business and Management shows that it has been easier for small businesses to get a helping hand from banks. The increase in Texas Commercial Loans is not only boosting the economy, but also leading to job growth. That doesn’t mean though that there aren’t still plenty of denials out there.

Applying for Texas Commercial Loans is usually the easy part of the process, getting approved can be the difficult part. The main reason for loan denials is because the lack of cash flow a company sees. It really all boils down to revenue, and insufficient revenue isn’t going to cut it. A business needs to show that they have a successful cash flow or banks will not be impressed or feel confident that they are going to be getting the loan paid back.

Credibility and stability are factors that play even a larger role in being approved or denied. Without proving credibility or stability, especially with an excellent credit score, there is no reason for funding to be approved. Every small business applying for a loan needs to prove that the extra funding is going to provide extra revenue. Without a good reason for extra money, many banks will not see the need to lend you the extra funds.

With that being said, you should really consider why you are applying for the loan. If you really don’t need the extra money right now, it might be best to not apply. There needs to be a good reason to get the loan and a solid foundation for it, this will lessen your chance of being denied. It is not always beneficial to get a loan when it is not necessary.

Other Factors Can Play a Part in Texas Commercial Loans Denials

Banks take into consideration many other factors as well. They look at the equipment used or available to the small business, the location and also the quality of the inventory. Having an issue with any of these items might give your business fewer options, making it harder and less likely to qualify for any extra funding.

Rotten credit can really affect your chances of getting Texas Commercial Loans!

Of course, credit plays a large role in getting approved for Texas Commercial Loans. Most banks strongly encourage a credit score closer to the 700 mark. If your small business is struggling and you currently don’t have the best credit, consider starting out with a small loan. Your chances of getting a large loan is slim, but try to apply for loans with a smaller amount. That way, you can rack up your credit by making regular payments on time. If you start on building your credit by starting small, then you will have a better chance of getting a larger loan in the future, when your small business will really need it.

Dennis Dahlberg
Broker/RI/CEO/MLO
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.

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