Commercial Loan Quote

A quote for a commercial loan is much different than a letter of intent (LOI). A letter of intent is simply a lender expressing interest in reviewing a complete loan package. This does not indicate an approval. No underwriting has been completed or due diligence. In most cases your credit reports have not even been reviewed. When you receive an LOI it means that lenders are interested in reviewing your loan request in further detail.

A quote or commitment letter is issued once the loan has been underwritten. This can be provided in about two weeks from the time a lender begins reviewing a completed loan package from you. This letter will still have a few “outs” for the lender in case something comes up prior to closing that weakens your credit request. However, the commitment letter is something a business owner can take action with.

Make sure you know what letter you have when pursuing a commercial loan request. This will help you make better decisions. Don’t spend too much money or time on a deal until you know you have the resources to make it happen. A commitment letter will help you do just that.

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