102 Loan applications go through commercial underwriting. That means banks use the same processes and formulas they do for residential loans. That’s where the errors may happen. For commercial loans, more banks employ commercial loan officers than residential loan officers. You can also hire Commercial Loan TrueRate Services. If you have a loan application that gets declined or denied, it’s usually a good sign your application went through a commercial loan. Typically, commercial loans go through commercial loan review, whereas loans that are given to your business or to families typically go through the financial institution that your loan is being drawn from. Here are some steps that you can take in order to increase your chances of being approved: 1. Understanding The Structure Of Your Loan Your lending agent needs to know you’re going through the commercial loan process. Commercial loan officers are much more involved in the transaction and a loan officer will ensure they understand your business model. Lending professionals will also make sure they understand the structure of your loan. 2. Have A Strong Financial Plan Always have a strong financial plan to address your short-term and long-term goals. Most loans are based on the business plan. Make sure it’s tight and concise since lenders tend to want to get as much information as they can about the owner and the company. 3. Don’t Forget To Put Your Company Finances In Place Make sure your company’s finances are in place. Lenders will want to see that the business has a credit line from a bank or lender and at the very least, you’ll need to produce a business bank statement. A business bank statement or a balance sheet from an auditor will also be required. 4. Do Everything Which Can Be Approved Make sure you’ve done everything you can to be approved. If your loan application gets declined, make sure you do everything you can to fix the problem. Lending institutions want to make sure that if they’re involved in a transaction, you’ll be able to repay the loan in the future. While some of the credit used in lending goes back to the consumer, a lot of the credit goes back to the lender. You’ll be required to pay it back. This is where you’ll be hit with a “loan principal balance,” or loan payment. This is typically a minimum of 40 percent of your business’s revenues and the loan will need to be paid off in full within five years. 5. Avoid Falling Into Default You need to avoid falling into default. It’s not a good idea to default on your loans since that will create a lot of red tapes and if you do fall in default, you’ll be flagged as a bad borrower. That means you may not get loans from the financial institution that lent you the money for a while. 6. Low Rates After the credit scoring system has been applied to your application, it’s based on the financial data the lender has to offer. That’s where the credit crunch will affect borrowers the most. Most lending institutions have very low rates, while loan products are being offered to consumers at extremely high rates. Higher rates will reduce your ability to get commercial loans in the future. And the lower rates being offered, are a complete nightmare for businesses. Those rates are so low that it’s very easy for borrowers to fall into severe debt. As long as you pay your bills on time, make sure that your credit is in good shape, and stay on top of your financial situation, you should be able to get approved for the loan. The best rates and credit lines will usually be for the businesses that are already paying in full every month. The low rates for borrowers with a poor credit history are very frustrating and it’s impossible to win that battle. Credit scores are determined by collecting information from the financial institution that you’re working with. This information will include credit scores, financial information, and information from the previous loans you’ve had. As long as your credit is in good shape and you’re making payments on your loans, it’s unlikely you’ll fall below a reasonable credit score. The credit risk is higher for borrowers with very low credit scores. 0 comment 0 FacebookTwitterPinterestEmail Uneeb Khan Uneeb Khan CEO at blogili.com. Have 4 years of experience in the websites field. Uneeb Khan is the premier and most trustworthy informer for technology, telecom, business, auto news, games review in World. previous post How To Download Twitter Videos For Free next post 6 Laptops for 3D Design Related Posts Expert iPhone Phone Repair Services in Putnam, CT December 3, 2024 Book Your Sunset Dinner Cruise in New London,... December 3, 2024 What Are the Best Car Services for Quick... 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