With low interest rates and an abundance of available properties, renovation and improvement options, looking into a business loan for your commercial property is a benefit you just can’t pass up. But while it is a great time for you to look into growing your business by improving current properties or purchasing new, getting approved for a loan can be tricky and, sometimes, overwhelming. Follow these simple guidelines to find out how you can improve your chances of getting a commercial loan and revamping your business.
Look For a Fair Price
Low balling sellers for a property you are interested in for your business will sometimes set you up for a long drawn out process that won’t end as you expected. Instead, be fair and upfront regarding the price you are willing to put down for a property you are interested in. In addition, make sure the pricing you agree upon coincides with what the property has been appraised for offering a price that is below or well above what the property is worth is bound to draw out your endeavor and result in problems over the long haul of the journey.
Communicate
Communicating effectively with lenders, sellers and potential investors highlights your competency as an quality business person. Letting sellers know about your interest and financial abilities right from the start will establish you as a serious contender. Sellers who feel you are not serious about your offer, feel insulted by low balling or assumed you are disinterested because of poor communication will not be willing to work with you and progress through the buying process as quickly. Make sure you exhibit your interest with reasonable financial offers and convincing communication.
Make Sure Your Business Plan Remains Familiar
Changing up your business plan or reconstructing your business completely as you begin to shop for loans will do nothing to give lenders the confidence they require to give you a loan. Instead, stick to a quality, common sense plan that is similar to what you have done in the past with hard facts and data to back up its successes and support your expansion or improvement that requires a commercial loan.
Boast Past Success
Although your business may have struggled in the past, make sure you show potential lenders how your company made it out of difficult times, only to prosper and grow. While lenders like to hear about your past success, showing them you have overcome struggles previously is a good way to prove your legitimacy and provide confidence in your plan.
Caleb works for a financial services company that offers hotel loans and a variety of other commercial real estate loans. He enjoys travel, writing and spending time with his children.