Introduction to commercial lending
From startups in the earliest planning stages to established companies looking to expand, all kinds of businesses take out loans. Commercial lending can be used for initial expenses, financing ongoing operations, or major investments in equipment. After qualifying for a loan, businesses make monthly payments that include a portion of the original amount borrowed - the principal - plus interest to the bank or other lender.
If you're looking for a business loan, there are some important steps to take before you apply. Lenders will expect you to prove your commitment to the business and demonstrate that you'll have the ability to pay them back: they're in the commercial lending business to make money, not to provide a service to struggling businesspeople.
It's also important to know that every commercial lending application you submit will be listed on your credit record - if you're turned down by one lender, the next will see that you were declined already, which further reduces your chances. For this reason, you should make sure to do everything you can to get it right the first time.
Getting approved is a major hurdle, but BuyerZone can help. This BuyerZone Buyer's Guide provides tips on ways you can try to improve your chances of securing a loan, whether you need $10,000 or $1,000,000, so you can take your business to the next level.