Competitve Business Loans

Much like you wouldn’t purchase a new car without doing a great deal of due diligence, you shouldn’t get a business loan without going through similar scrutiny. The first banker you speak with for a business loan is normally not a decision maker. This means you’re dealing with a sales guy. Be cautious to believe everything this banker may tell you about your loan request. Often they will give you a false sense of optimism toward funding your loan.

It is important to meet the decision makers if possible. When it is not possible to meet face to face with the decision maker at the bank, you must rely on the sales banker you met first. Make sure you explain the details of your request and ask many questions. It may seem silly, but it is a good idea to micro manage the sales guy. This will ensure your loan gets the right look from the decision makers.

Although there are many brokers that are crooks in the industry; you may also find great value in gaining a competitive offer from a lender by using a broker. Business loan brokers understand many lender credit policies and see several loans close across various lenders. This helps commercial loan brokers recognize a good deal when they see one. It also helps them protect the interest of borrowers against lenders who do not offer competitive terms.

If you choose not to use a broker you will want to visit a few lenders and try to get a pulse for their terms and rates available. Lenders will be very hesitant to give you anything because it is all subject to change and underwriting standards. Do your best to ask generalities about deals they have previously closed. This will give you the greatest pulse on what the lender will and wont do.

Commercial business loans are expensive. Give yourself some time to work through the process. If you don’t have time to do your due diligence, it would be wise to hire someone who can guide you through the process. This is an essential part of getting a competitive business loan in this credit market.

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