Whether you’re planning to expand your investment portfolio or acquire your very first commercial real estate, chances are you’ll need extra financing. Just like a home mortgage, commercial loans can help buy commercial properties outright or fund required improvements in the existing commercial space. But, it’s important to consider that the commercial lending process is somewhat fraught with uncertainty. This guide will offer you tips on dealing with all the uncertainties associated with the commercial lending process.
#1 Be Clear About the Amount You’ll Need
Always predetermine the right amount you’ll need to finance the commercial space. For instance, don’t ask for a $300,000 loan and later realize that $600,000 was what you actually needed. This is because the lender might not be able to approve a second loan quickly. This means you’d either be stuck with insufficient finances or you’ll need to find another lender, which can sometimes be a much more tedious and complicated process. On the other hand, if you overestimate the financing amount, the lender might question your assumptions and credibility.
#2 Keep Your Business Records Updated
Experts atK.N Horton Financials recommend staying transparent about your current financial state. This is because the process of applying for finances becomes much smoother if your taxation, accounting, and other financial records are up-to-date and accurate.
#3 Maintain Good Credit
Besides precise and up-to-date documents, all the financial obligations must be always addressed within time. Avoid charge-offs, late payments, bankruptcies, and foreclosures if you want to meet the credit criterion of most commercial lenders.
#4 Identify A Reliable Lender
All lenders are different in terms of attention, terms, and stringent requirements, especially for large-scale project loans. While banks might be more focused on bigger clients, alternative lenders like K.N Horton Financials are much more accommodating and flexible to the client’s unique needs. You need to schedule a consultation to determine whether the lender is suitable for the kind of commercial real estate loan you need in terms of product, terms, size, level of know-how, and more.
Submit Your Application
Getting quick access to finances can become problematic if the particular paperwork isn’t turned in on time. Whether it’s insurance, appraisal, or environmental reports, keep them all ready before approaching the potential lenders.
If you have more questions about the commercial lending process or are looking for a reliable non-recourse loan provider, reach out to professionals at K. N. Horton Financials. They work with major stock markets worldwide to ensure quick, high-net-worth loans for yacht financing, private jet loans, commercial funding, and more in the Philippines, Malaysia, Singapore, New Zealand, Japan, Australia, South Africa, and Indonesia, among others.
