Business owners often need to get financed to pay bills, order inventory, or take care of other financial needs. When you wonder what it takes to get approved, you can prepare yourself by knowing this criteria in advance. These standards are usually implemented by Atlanta private commercial lenders to ensure that applicants can pay back the balance of their loans.
The first step that you may be expected to take centers on passing the credit check. Banks and financiers are still antsy about lending money because of the recent economic downturn. They want to know you have stable credit and that you have not defaulted on previous loans. You might be put through a credit check and required to put your Social Security number on the application.
Another consideration for finance companies involves how long people have been in business. Businesses that have been in operation for years fare better than those that have only been open for a few months. Financiers want to know you maintain a client base that will keep you afloat financially until you pay off the balance of the loan.
Solid customer bases also mean that business owners like you collect on a steady stream of invoices. Accounts receivable tend to be popular assets considered by some financiers because the accounts receivable will be paid at some point in the future. They are guaranteed money. In a process known as factoring, your lender may buy those invoices and give you the money in return.
If you lack invoices, a company may still consider what assets you have free to put up against a loan. Assets that are free from liens can be appraised for their dollar value and used to secure the balance. If you default on the loan, the lender can then seize these possessions and sell them off to recoup the money that you owe it. Property, equipment, and inventory tend to be popular assets.
A company from which you apply for financing will likewise check out what other liens you took out in your name or your business' name. It will not want to add to your financial burden by giving you money that you may be unable to pay. You better your chances of approval if you have most of your outstanding balances to other creditors paid in full.
These criteria come into play when you seek financing through a private commercial lender in Atlanta. These details determine if you are credit worthy and capable of making payments. You can better your approval chances by keeping these details in mind.
The first step that you may be expected to take centers on passing the credit check. Banks and financiers are still antsy about lending money because of the recent economic downturn. They want to know you have stable credit and that you have not defaulted on previous loans. You might be put through a credit check and required to put your Social Security number on the application.
Another consideration for finance companies involves how long people have been in business. Businesses that have been in operation for years fare better than those that have only been open for a few months. Financiers want to know you maintain a client base that will keep you afloat financially until you pay off the balance of the loan.
Solid customer bases also mean that business owners like you collect on a steady stream of invoices. Accounts receivable tend to be popular assets considered by some financiers because the accounts receivable will be paid at some point in the future. They are guaranteed money. In a process known as factoring, your lender may buy those invoices and give you the money in return.
If you lack invoices, a company may still consider what assets you have free to put up against a loan. Assets that are free from liens can be appraised for their dollar value and used to secure the balance. If you default on the loan, the lender can then seize these possessions and sell them off to recoup the money that you owe it. Property, equipment, and inventory tend to be popular assets.
A company from which you apply for financing will likewise check out what other liens you took out in your name or your business' name. It will not want to add to your financial burden by giving you money that you may be unable to pay. You better your chances of approval if you have most of your outstanding balances to other creditors paid in full.
These criteria come into play when you seek financing through a private commercial lender in Atlanta. These details determine if you are credit worthy and capable of making payments. You can better your approval chances by keeping these details in mind.
About the Author:
Tom G. Honeycutt is a full-time real estate entrepreneur in Atlanta, GA. Tom helps readers by providing practical and useful knowledge to better understand lending choices. If you are looking for Commercial Real Estate Financing Lender in Atlanta, GA he recommends you check out www.ifundinternational.com.
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