After years of tight-fisted banks saying “no” to your requests for commercial loans, it looks like the dam may finally be breaking. Lenders seem to be more willing of late to share some of their liquidity with you, the entrepreneur. This is a funding source that has been largely absent since early 2008, but with its resurgence, you might consider it a viable option for growing your business. Here are a few tips to consider:
- Cash flow is king. One of the fundamentals of loan underwriting is an assessment of the borrower’s ability to repay. If you have strong cash flows, you are a good risk.
- What is your net worth? Banks like deals that can be collateralized by real estate, a company’s receivables, or other assets. If you (or your business) can show a strong balance sheet, your chances of getting a loan go up dramatically.
- Different institutions like different deals. It may take a few tries to find the right lender for your loan. Some will be interested in working with you and your business and others won’t. Don’t get discouraged if you have to kiss a few frogs.
- Be patient. The process of loan origination, underwriting and funding can be tedious and protracted, but it can also be well worth your time and effort.
Get Competing Quotes on Business Loans Save Time & Money! The Superior Mortgage Lending Team is your premiere mortgage professionals team in Las Vegas, NV and licensed to do business in California and Arizona.