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.
One of the first hurdles you might have to overcome involves passing the required credit check. If a lender relies greatly on credit, you will be asked to give your Social Security number and submit to a check to determine your credit worthiness. If your score is high enough, you will be approved. If not, you might be denied.
The longevity of your company may also be taken into consideration. Companies that have been in business for years tend to fare better than those that are new to the market. Established companies tend to have solid customer bases that bring money into the business. This solid stream of customers means that you have a relatively stable cash flow.
When you have a steady client base, a lender will assume that you have plenty of accounts receivable. Your invoices can be used as collateral against a lien. The lender might purchase some of the invoices and then give you money based on those invoices' value. This lending process is known as factoring.
A lender may also investigate if you possess other assets that can be used to back up a lien. The building in which your business is located, as well as the equipment or inventory that you have on hand might need to be put up as collateral. The financier will feel more secure in giving you money if it knows it can seize those assets and sell them if you default on payments.
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.
One of the first hurdles you might have to overcome involves passing the required credit check. If a lender relies greatly on credit, you will be asked to give your Social Security number and submit to a check to determine your credit worthiness. If your score is high enough, you will be approved. If not, you might be denied.
The longevity of your company may also be taken into consideration. Companies that have been in business for years tend to fare better than those that are new to the market. Established companies tend to have solid customer bases that bring money into the business. This solid stream of customers means that you have a relatively stable cash flow.
When you have a steady client base, a lender will assume that you have plenty of accounts receivable. Your invoices can be used as collateral against a lien. The lender might purchase some of the invoices and then give you money based on those invoices' value. This lending process is known as factoring.
A lender may also investigate if you possess other assets that can be used to back up a lien. The building in which your business is located, as well as the equipment or inventory that you have on hand might need to be put up as collateral. The financier will feel more secure in giving you money if it knows it can seize those assets and sell them if you default on payments.
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 Instant Commercial Building Financing in Atlanta, GA he recommends you check out www.ifundinternational.com.
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