It may come as a surprise to some but there are factors beyond a company’s cash flow and credit history that can help you obtain secure commercial financing. Here are some tips to help borrowers when applying for credit:
1. Presentation counts. Lenders say they often look to factors beyond cash flow and credit ratings. These can include having a relationship with the business leaders, being impressed by a business plan and strategic goals, and working with applicants who are well organized and able to quickly provide requested documentation.
2. Start early. Reach out to lenders before you need a major cash infusion. That gives you time to educate a lender on your business and goals.
3. Understand the lender’s perspective. The financing has to make sense in terms of a return to the lender, not just the growth or strategic goals of your business.
4. Look for a lender who knows your industry. If a lender is looking to invest in your field, odds are it already has done basic research and understands how your strategic goals make sense for your company.
5. Tell the truth. Sounds obvious but discrepancies or hidden information can not only sink an existing loan application, it can permanently sour a relationship with a lender.
Loan officer and mortgage professional Andraya Coulter can help you navigate the mortgage approval process and buy a new home. To learn more about her services for the Bay Area and Northern California, contact Andraya.