Applying for a commercial loan can be intimidating. Knowing how to prepare a winning business loan proposal can be as easy as knowing a few simple key rules and understanding what a loan officer is looking for when approving a business loan. We’ll go over a few strategies for creating a commercial loan proposal that will almost guarantee approval.
Develop a solid business plan first
Without a solid business plan, it is almost assumed that your commercial loan won’t be approved. Before even applying for a commercial loan, make sure that you have a thorough and fleshed out business plan. Make sure that your plan involves an executive summary (an overview of your business), a company description (describing the history and current status), your management’s experience (every member that will be part of the team), your financial data (to show your business’s strength), your marketing plan, your production plan and your human resource’s experience (for every member of that team as well). Failure to include any part of that in your business plan will make your commercial mortgage far less likely to be approved or set you back significantly time wise. Don’t create unnecessary delays.
Include all necessary supporting documentation
In order to make your commercial loan go through without any delays, make sure to include all necessary supporting documentation. Not only does this include financial documentation but also supporting documents that prove that you are prepared and researched – market studies, testimonials from both current and former clients, any positive media reports, etc. This will make your application for your commercial mortgage loan as complete as possible before you apply. Compile them all in one place to reduce your hassle and make it easier on both yourself and your commercial loan officer. Show the commercial mortgage people that you are prepared and ready to succeed in business by having everything ready ahead of time. He or she will be both impressed and ready to approve your commercial loan in no time flat!
A few more tips
A few other tips for a successful commercial loan application include : using simple language (don’t try to use big words just because you can. Your loan officer is looking for a safe bet that is straight to the point.), selling yourself (make your loan officer personally want to invest in the company!), prove that you’ll succeed (and how you plan to succeed – not if!) and make sure the loan officer can read through your commercial loan application clearly and quickly. Use images if it enhances the data, make your application pop and prove that you have what it takes to run a successful company!
Commercial loan applications can be overwhelming but they don’t have to be! Make sure to think through your business plan, lay out your application is a clear and concise way and include any and all necessary supporting documentation to ensure a quick and easy commercial mortgage loan application process… and good luck!
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