Whether you are trying to obtain a multifamily loan, a vacant land loan, a construction loan, commercial aircraft financing, or any other type of commercial lending product, it helps to know what considerations are important to lenders before you apply. Following are some of the criteria you should be aware of.
- One of the prime considerations is going to be your cash flow, both presently, and what you project for the future. When your expenses are subtracted from your profits, you need to have a high enough cash flow not only to stay afloat, but also to pay off the loan and cover unexpected expenses over the years ahead.
- As with applying for a residential loan, your credit score will be considered along with that of your business. Both the financial profile of your business as well as your own and that of any co-owners will be subjected to scrutiny. If there are any foreclosures or bankruptcies in your past, be prepared to explain them, along with court judgments, defaults, or other black marks.
- You will need an up-to-date business plan to present along with your financial information. If you are purchasing vacant land for a construction project, your chances of obtaining financing improve if you have architectural plans and estimates prepared as well.
- How you plan to use the property as well as the nature of the property in question may also impact your qualification for a commercial loan. The property value will also be a prime consideration.
- The more collateral you have available, the more likely you are to qualify for a loan with competitive terms.
- You will need the relevant documentation ready to prove everything that you have stated about your business and personal financial situation.
You will give yourself the best chance of being approved for a commercial loan if you do two things:
1-Walk into your loan appointment well prepared with everything you need to make your case that you are a good investment.
2-Work with a commercial mortgage broker in South Florida which partners with a large network of reputable banks, hedge funds and private lenders. This will maximize the opportunities available to you.
At Lending Bankers Mortgage, we partner with over 130 lending companies throughout the region and have been specializing in commercial financing for over 15 years. We work hard to get you approved fast for the ideal lending product for your venture.
If you are ready to apply, please give us a call at (786) 220-1100 or email info@lendingbankers.com, and we will schedule you for a free consultation. We can’t wait to help you finance your commercial real estate purchase or construction project in South Florida.
