If you need to buy some commercial space, whether to house your business or to rent to another entrepreneur, you’re likely going to need to get a commercial loan to help you afford this move. Just like with home loans, you’re going to want to get the best possible deal on your commercial loan. To help you accomplish this, here are three tips for getting a good commercial loan.
Prepare To Get The Best Rate
In order for you to be able to secure the best possible rate on your commercial loan, you have to be prepared for all that’s going to be looked into when applying for your loan. To qualify for a great rate, you have to be able to prove that you’re worth it. According to Joshua Mrozinski, a contributor to Go Banking Rates, you can prove that you’re a good investment risk by showing your lender that you have a good personal credit history and that you have a well thought out business plan. A lender isn’t going to want to give money to someone who doesn’t have a proven track record of being able to handle their debt well or who doesn’t know how to run a successful business enterprise. So if you’re able to show that you can do both of these things, you’ll be able to qualify for a much better loan.
Learn What They Want From The Application
To get approved for a good commercial loan, you’re going to want to give yourself the best chance of supplying your lender with the information and qualifications they need. But to best do this, you first have to know what they require. According to Mortgage101.com, you should try to get a copy of the loan application before you’re quite ready to fill one out for yourself. This will give you the chance to see what type of questions or qualifications are listed there. Once you have this information, you can do what it takes to ensure that your business can adequately answer what the lender is asking.
Showcase Your Track Record and Experience
When it comes time to apply for your commercial loan, one of the best things that’s going to give you a leg up on other businesses is showing that you have a good track record in your industry and that you have experience. Lenders are more apprehensive to bet on people with no track record, so make sure you showcase yours if it’s positive. If you don’t have the best track record or experience, Joshua Dorkin, a contributor to Bigger Pockets, advises that you put someone on your team that does so that you can use their experience to give your business investment a little more credibility.
If you’ll be looking for a commercial mortgage soon, consider using the tips mentioned above to help you find the best fit for your needs.