You’ll find plenty of opportunities to get funds for your business endeavors no matter what state you are in within the United States. But you must ensure that you have the proper tools before seeking any assistance with a commercial lender.
COMMERCIAL LENDER GUIDELINES:
Most banks and commercial lenders around the United States have certain guidelines that you need to follow. There are a few things that you must present when acquiring a loan:
- Provide your tax returns from at least the last three years. You must show your financial responsibility. It may assume that your personal finances may be a part of how well you’re capable of handling a future loan.
- Any financial statements from your business should be provided. You’ll need documents from the last five years or since your business started. You should also include leasing information and other forms of financing that aren’t on your balance sheet. Any forms of income you receive must also be incorporated into the review.
- You must also list the cash flows in your business. The flows include reviews of how much money is coming into the business.
- A projection of your future cash flows should also be illustrated to the commercial lender. These include the projected flows you’ll have during the life of the loan.
- You should offer credit reports of all owners and partners. These include people who will have direct input in the financing and funding aspects of your business. These entities may be considered people who could financially support your business.
- Any credit reports for your business should also be provided. Such reports include details on how well your business has handled financial investments in the past.
- A business plan is necessary for a commercial lender to determine eligibility. The plan lists how you’re going to use your assets or property. You must also explain your management plans and your commitment.
- An appraisal will also help. A third party can appraise your commercial entity to review its value. All assets and other intangibles will be factored into the analysis. The work gives you a better idea of what your business is worth.
- You should also provide proof of citizenship or residency in the area you plan on doing business in. The proof lets the commercial lender know that you’re in an area where you can afford to handle any taxes or other state-specific expenses that might come your way.
All these items are necessary when applying for it. You’ll need to ensure you have a complete profile of yourself and your business. It will be much easier to find real estate funding and be able to get your hands on the best rates when you provide the proper documentation.
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