People who own their own businesses nearly always face financial hurdles. It takes plenty of money to buy inventory, pay employees, and meet other important expenses. When your own cash flow is lagging, you may find it necessary to apply for financing through one of the Atlanta private commercial lenders near you. You can boost your chances of approval by knowing the lending criteria in place.
The first step that you may be expected to take centers on passing the credit check. Banks and financiers are still antsy about lending money because of the recent economic downturn. They want to know you have stable credit and that you have not defaulted on previous loans. You might be put through a credit check and required to put your Social Security number on the application.
Another consideration for finance companies involves how long people have been in business. Businesses that have been in operation for years fare better than those that have only been open for a few months. Financiers want to know you maintain a client base that will keep you afloat financially until you pay off the balance of the loan.
Solid customer bases also mean that business owners like you collect on a steady stream of invoices. Accounts receivable tend to be popular assets considered by some financiers because the accounts receivable will be paid at some point in the future. They are guaranteed money. In a process known as factoring, your lender may buy those invoices and give you the money in return.
If you lack invoices, a company may still consider what assets you have free to put up against a loan. Assets that are free from liens can be appraised for their dollar value and used to secure the balance. If you default on the loan, the lender can then seize these possessions and sell them off to recoup the money that you owe it. Property, equipment, and inventory tend to be popular assets.
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.
When you knowing these details first, you can better your chances of approval from one of the private commercial lenders near you in Atlanta. The process can be intimidating when you lack this information upfront. However, being aware of what is expected of you can allow you to apply in a responsible manner.
The first step that you may be expected to take centers on passing the credit check. Banks and financiers are still antsy about lending money because of the recent economic downturn. They want to know you have stable credit and that you have not defaulted on previous loans. You might be put through a credit check and required to put your Social Security number on the application.
Another consideration for finance companies involves how long people have been in business. Businesses that have been in operation for years fare better than those that have only been open for a few months. Financiers want to know you maintain a client base that will keep you afloat financially until you pay off the balance of the loan.
Solid customer bases also mean that business owners like you collect on a steady stream of invoices. Accounts receivable tend to be popular assets considered by some financiers because the accounts receivable will be paid at some point in the future. They are guaranteed money. In a process known as factoring, your lender may buy those invoices and give you the money in return.
If you lack invoices, a company may still consider what assets you have free to put up against a loan. Assets that are free from liens can be appraised for their dollar value and used to secure the balance. If you default on the loan, the lender can then seize these possessions and sell them off to recoup the money that you owe it. Property, equipment, and inventory tend to be popular assets.
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.
When you knowing these details first, you can better your chances of approval from one of the private commercial lenders near you in Atlanta. The process can be intimidating when you lack this information upfront. However, being aware of what is expected of you can allow you to apply in a responsible manner.
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 Funding in Atlanta, GA he recommends you check out www.ifundinternational.com.
