Need funds to startup or expand your business? Follow these steps:
A lender looks at a loan request in three sections known as the "three C's". They are:
Step one is:
1. Identify your strength and weaknesses in the "3 C's". Do this as would a lender - with a very critical eye. Identify your loan to value ratio and your debt service coverage ratio. If you have reason to believe that you credit is less than sterling, get a copy of your credit report including your credit score
Each lender has different criteria with the cost of the loan being higher as your strength in the "3 C's" is lower. Step two is:
2. Identify lenders who lend to your level of borrower and to your industry type. Call lenders to get their criteria. Learn about the SBA 504 program and 7A loan guarantees. Find who others in your industry have used for financing.
If there is a gap (not a canyon, just a gap) between your borrowing ability and lenders criteria, a loan broker may be able to help. They spend their working hours finding second and third tier (more aggressive and more expensive) lenders and establishing relationships with them. They can act as a salesperson for your project in ways that you as a principal cannot. Step three:
3. If you cannot find lenders on your own, consider hiring a commercial mortgage broker. Be careful - in many areas there is little or no protection under the law for commercial transactions. While a small upfront fee for out of pocket expenses is reasonable, shy away from any that want large upfront payments. If they can do the deal they will be paid very well at settlement. If they can't do the deal they shouldn't be taking your business at all.
Once you identify a list of potential lenders or hire a broker, get prepared. Do not think that the business loan process is merely a matter or forms and paperwork. While there is more paperwork than you'd ever want to see, it is more of an inquisition. Step four:
4. Be an expert salesperson for your project. Obviously, we think that your should use FundablePlans.com to build a written proposal. Whatever method you use, know your numbers and be able to defend them. Understand your market and be able to speak competently about it. Know your competition. Most importantly, (from step one) know your strengths and weaknesses as a borrower and be able to maximize the strengths and minimize the weaknesses.
If you are successful with steps one through four, you will expect to "hit a home run". You may, but most likely you won't. Step five:
5. Don't give up. Where one lender might have too many loans of your type in her portfolio, the next may need exactly your loan to meet his goals (loan officers are paid to lend). This is not to say that you should "beat a dead horse", but if you have a viable project, a good presentation and good "C's", you will be able to get financing.
Good luck with your project, if you have questions about funding feel free to use the e-mail link below.
About The Author
Dave Miller is a business consultant and the creator of FundablePlans.com, an online business plan builder at http://www.fundableplans.com, dave@fundableplans.xom
Bad credit loans UK can sometimes prove quite difficult to... Read More
Borrowing money has become more and more popular in the... Read More
Studying at college can be an expensive business and you... Read More
Applying for a payday loan online is a quick and... Read More
Online car loans enable you to get a good quote... Read More
A Brief Look At Loans "Innovative financial packaging" is how... Read More
A title loan is a loan of money secured by... Read More
Bad credit payday loans may seem like an oxymoron phrase,... Read More
A loan is money that you borrow and agree to... Read More
Listed below are some of the reasons for choosing a... Read More
Okay, so one day you wake up and realize that... Read More
Online lenders might be high quality, serious companies such as... Read More
"All work and no play makes jack a dull boy".The... Read More
In the full moon night, on a lovely morning you... Read More
Should you be in the market for a homeowner loan,... Read More
Secured loans are one of the most popular personal loans... Read More
Enervated by the hectic schedule at the work place, traveling... Read More
Regardless of your trading style; day trading, swing trading, or... Read More
Here is a useful beginner's guide to bad credit secured... Read More
Secured loans are becoming increasingly popular due to their flexibility.... Read More
Happiness is what they're selling. Relief from the crushing weight... Read More
What is man's greatest invention?Some of the latest gizmos would... Read More
Credit Unions have long been known as the place to... Read More
An unsecured loan is a personal loan where the lender... Read More
A Commercial Lender is Not a Commercial Lender When it... Read More
What is a Secured Loan?A secured loan is any loan... Read More
No one can say for certain where the history of... Read More
On average, homeowner households earn 95% more than renting households... Read More
A second mortgage is a loan that is secured by... Read More
Here is a useful guide to Bad Credit loans. Bad... Read More
Short term payday loans are now available online. After filling... Read More
Wedding loans because wedding may be made in heaven but... Read More
Whether your payday arrives every Friday or every other Friday,... Read More
Every year, misinformed homebuyers, often first-time purchasers or seniors, become... Read More
When trying to locate bad credit loans, many people find... Read More
Many people are confused by the different types of loans... Read More
What is a payday loan? This is a small short-term... Read More
Should you be in the market for a homeowner loan,... Read More
There are many benefits in choosing a business loan, some... Read More
If you're looking for an online loan, you might be... Read More
As the name implies, bridge loans fulfill a vital need... Read More
For those individuals who are looking for fast and inexpensive... Read More
Looking for low interest debt consolidation loans can sometimes seem... Read More
Online car loan shopping practically guarantees that you are getting... Read More
A Commercial Lender is Not a Commercial Lender When it... Read More
If you've been tossing around an idea for a small... Read More
When trying to discover the origins of lending you might... Read More
Have you been trying to find out what bad credit... Read More
Parent Loans or Student Loans ? what is going to... Read More
Bad credit payday loans may seem like an oxymoron phrase,... Read More
There is a huge market for homeowners who have credit... Read More
A car loans after a bankruptcy is one way to... Read More
If you need a fast way to get an emergency... Read More
Parents should begin saving money early for their children's college... Read More
If the statistics for the quarter ended April 2005 are... Read More
The average person some time in their adult lives will... Read More
Online payday loans seem to be popping up everywhere. A... Read More
In a time when everything seems expensive, it might seem... Read More
You were on your regular walk with your wife, and... Read More
Here is a useful beginner's guide to bad credit secured... Read More
The most important and difficult part in farm mortgage shopping... Read More
Here is a useful guide to bridging loans. This is... Read More
What is man's greatest invention?Some of the latest gizmos would... Read More
Online lenders might be high quality, serious companies such as... Read More
A Home loan is the generic term for a loan.... Read More
Personal loans are offered by lenders such as banks and... Read More
Loan |