Dennis Dahlberg - It Can't Get Better Than This!: Arizona bridge loan

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Tuesday, May 22, 2018

Tips to Secure a Business Loan Arizona

Securing a business loan Arizona can be challenging. But following a few tips can greatly improve your chances for a fast approval.

Securing any type of loan can be a very stressful process. But the application process for a business loan Arizona can appear extremely overwhelming. Unlike a personal loan application which is fairly simple and straightforward, a business loan application requires a great deal of information about the business and even the personal finances of the owners or principles of the company. To ensure that you are investing your time in a successful loan application, you will want to be sure to follow a few simple tips that have been found to produce successful results.

The business finances are critical to any loan approval as you might expect. The company should have been profitable for at least two years to have a good chance at securing funding. Having financial statements and credit reports in good order before requesting a loan is very important and will save you a great deal of time when completing application. Also having the owner’s information readily available will make the process less stressful.

In addition to financial information, lenders want to have a good understanding of the company, its history and the experience level of the owners and senior management team. This means detailing the birth and growth of the company as well as explaining the business plan and reason for the loan request. Simply stating that it is for growth or expansion is too vague. Explain what the funds will be used for, how they will benefit the company and the expected return on the investment. Details about how the loan will help the company achieve goals in the five and ten year plan will demonstrate strong and experienced leadership and increase the lenders confidence in your business.

Think Local

Unless you have a very large and well established business, a local lender might be a better option for a business loan Arizona. Local lenders tend to place more value on business history, involvement in the community and the local economy. Large national lenders work more from a very strict formula for loan approvals where a local lender has the ability to “bend” the criteria slightly to process loans that are less favorable. Knowing this though, be certain to have a very well prepared and detailed loan application for local lenders. They will be even more motivated to learn about your business and the professional history of the management team.

Be Well Prepared

When seeking any business loan Arizona, detailed preparation is your best tool for success. Detailed financial information and history about the business will help to establish the creditworthiness of the business. This information presented to a local lender in a professional format is going to create a good first impression for you and for your business. And though the process might take some time, you will find that you stand a much better chance of getting your application approved.

Sunday, April 29, 2018

How to find the right hard money lender for your next project

Just because you cant secure a traditional bank loan doesn't mean you don't have other options, you may have considered a hard money lender but where do you start? What should you expect from a potential lender, and what will a lender expect from you?

A quick google search for private lenders should turn up an endless array of financing options. Because you might need a specific type of lender to match your particular project an online search can prove to be a little overwhelming. You could always try to be more exact with your search terms, trying things like ‘private rehab loans,' or ‘private construction loans.' Being specific with your online searches may help you find the lender that is right for you, but this isn't always the case.

Consider using one numerous lender databases available online to narrow down your financing options. The ideal database would allow you to aim your search for lenders based on the amount of financing you need or will enable you to search for lenders based on your specific project, (i.e., Renovation, construction, commercial, etc).

If you'd rather avoid the hassle of searching for a lender on your own, you could seek out a referral from a licensed mortgage broker. Local real estate investment groups could also put you in touch with lenders they have worked with in the past.

If you find the right lender, the question then becomes what should expect from them and how do you know you're getting the best possible deal.

What should you expect from a potential hard money lender during the application process?

Search relevant government databases to ensure your lender is licensed. Your lender should also be transparent throughout the process. Ensure that they meet their published guidelines related to fees and closing costs. You should also be wary of teaser rates offered by unscrupulous lenders.

Know that every private lender is different and will have their criteria when it comes what they expect from you as a borrower.Ask your lender to be transparent about any documentation you might need throughout the loan application process.

Know what your hard money lender expects from you to get the best deal possible

This type of loan is often used to finance rehabilitation and construction projects.If your seeking financing for renovation or construction, a lender will want to ensure that you are competent and knowledgeable about your project. In these cases, before approaching any lender, have details about the property you wish to purchase, a budget for your renovations and thorough projections about the future profitability of your project. You build up your lenders confidence and gain room to negotiate by demonstrating your understanding of a project's potential.

You need to have a detailed understanding of what your property is worth to qualify for the best possible loan. A private lender usually bases the amount of financing offered on the market value of the property you are purchasing. You won't qualify the largest possible loan if you don't have a good sense of what your property is worth.

Thursday, April 26, 2018

Which type of Hard money loan is right for you?

The "hard "asset being financed secures a typical hard money loan. But there are different types of asset-based loans, so how can you figure out which one is right for given your specific circumstances?

Asset- based lenders consider the value of the property which secures the loan rather than a borrowers credit score, so this type of loan can be more accessible for some borrowers.

The application process is easier than a traditional bank loan as borrowers don't need to provide extensive financial documentation in most cases.

Typical types of asset-based loans include commercial, renovation and cash-out refinance loans. Businesses rather than individuals take out commercial loans.This type of loan is short term, and it is not typically used to purchase real estate or to make long-term investments. Instead commercial loans should be used to cover short-term costs like equipment or inventory.

Borrowers use renovation loans to improve a property and then resell it for a profit. Refinance loans allow borrowers to quickly purchase a property and then later refinance to a traditional mortgage.

So what are some specific situations and how do they relate to these particular types of asset-based loans?

Evaluate your situation to determine which type of hard money loan is right for you

An asset-based loan could be a good solution if your business has sufficient collateral and you cant secure financing from a regular bank. If you want to renovate a distressed property, an asset-based lender is your best bet. Few banks are willing to issue renovation loans because raising the required capital is made difficult by government regulations. Traditional lenders also deem such projects too risky because there is a high risk of default if the borrower's project doesn't go according to plan.

A cash-out refinance loan can be ideal if you want to purchase an investment property quickly. A traditional mortgage can take several months to close. A cash-out refinance loan allows you to make the initial purchase while giving you the option to refinance to a long-term mortgage at a later date.

Whatever circumstances asset-based loans provide you with flexibility, but any lender you approach should be transparent and willing to offer advice.

Beware of hard money lenders that cant offer you specific advice about which loan is right for you

There are other types of asset-based loans of course, but a good lender will carefully consider your situation to find the option that can best meet your needs. You should look elsewhere if a lender isn't transparent or is unable to give you insight into your specific situation.

A commercial loan can be great for businesses owners with a lot of collateral, but who are ineligible for regular financing. A renovation loan can allows you to improve and resell a distressed property, and a cash out-refinance loan allows you to complete time-sensitive transactions. In short, asset-based loans are easier to qualify for, can be used to make speculative investments and can close quickly to complete time-sensitive purchases. Carefully consider your specific situation to find the type of loan to meet your financing needs.

About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Friday, March 30, 2018

Why Understanding the Basics Helps to Avoid Red Flags on Commercial Loans

Applying for commercial loans is normally a long process. It is important to avoid raising red flags to keep the process as stream lined as possible.

Understanding the basics of commercial loans is critical to completing a loan application correctly and not raising unnecessary red flags which will slow down or stop the application evaluation process. Most commercial loans are offered for between 5 and 10 years but the amortization period is up to 25 years. Requesting a loan for a longer period of time is not normally an option but can indicate to lenders that you might be concerned about your ability to pay the loan in full in the allotted time frame. A standard down payment of 20% to 25% is expected on commercial loans. Again, this is a fairly non-negotiable fact as is a loan to value ratio of 80% or less.

One of the first red flags that a borrower can trigger is by demanding an unreasonably fast loan approval process. Some loans and lenders require 90 days or more to process and fund a loan. In a best case, it will require at least 6 weeks to process a loan application even if you have previously worked with the lender and been successfully awarded funds. An experienced and confident borrower knows the timeframe involved and has planned accordingly. Trying to rush the process indicates either inexperience which could jeopardize your approval or that your financial situation is about to change and you want to get approved before your creditworthiness drops.

Another red flag jumps out if you appear to be withholding information or are intentionally providing vague answers. A lag in response time might not be because you are trying to hide information but even if it is because you are not well prepared or are disorganized, the result is still a negative mark against you. Requiring continued requests for the same information is not going to make the lender bored and cause them to stop asking. It is going to make them worried or more curious and they are going to dig even deeper to find the reason for your secrecy.

Be Realistic

Finally, requesting a loan which is in excess of the 80% loan to value standard is going to create unneeded issues. The first thought is that you have not completed you due diligence and you are unaware of the actual property value. This makes you look ill prepared and unprofessional. The other thought is that you are simply disregarding the standards set by the industry. This makes you appear to be unrealistic and also self-absorbed as if the rules do not apply to you. Neither of these will create a positive image for you with the lender.

Avoid Any Unnecessary Issues

Most commercial lenders adhere fairly closely to the industry standards for loan terms. Understanding these terms and being realistic with your request will keep the process moving at or ahead of the average pace. But trying to rush or refusing to honestly answer legitimate questions posed by the lender will only cause unnecessary questioning of your business and financial stability which could eliminate your chance of securing a loan.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Friday, March 23, 2018

What it takes to get a Commercial Real Estate Lenders Approval

Knowing what commercial real estate lenders are looking for on an application will be very helpful when you are ready to seek a loan. Some of the information could surprise you.

Getting your loan application approved by commercial real estate lenders requires more information and effort than most first time buyers expect. But the key to understanding this request and the amount of information which is requested comes from taking a look at the loan from a lenders perspective. Commercial real estate loans are often quite large and hold some inherent risk. The lender is simply trying to eliminate as much risk as possible by being restrictive and stringent about their lending policy. This allows them to make their money and well qualified businesses to make their real estate purchases. They use a system which is sometimes called the three C’s to evaluate loan applications.

Collateral is a big factor in commercial lending. All loans are secured by a lien on the commercial property being purchased. This allows the lender the right to take the property and sell it to pay off a loan in the event that the borrowers default on the loan. If you are requesting a loan which exceeds 80% of the value of the property being purchased, the lender might also request that you offer other property or items as additional collateral for the loan. In most cases the lender would like the loan to only be 80% or less of the property value but in some cases they will accept cross-collateralization.

Cash flow is also an important factor to commercial real estate lenders. They need to see that either the property itself generates enough income to cover the cost of the loan payments or they need to see that the business purchasing the property has sufficient cash flow to pay the loan. In addition, commercial real estate lenders like to know that there are cash reserves or other assets which can be easily liquidated should the economy change and cause a decrease in the cash flow needed to make the loan payments.

Your Personal Promise

There are some occasions when the business does not have enough credit to merit a commercial loan or it has questionable credit. In this case, a commercial real estate lender will require the borrower to personally guarantee the loan. To qualify for this you must have a 660 personal credit score or better, no bankruptcy in the last 7 years, no foreclosures or short sales in the past 3 year and no open tax liens or judgements. If you meet these criteria then your credit history and creditworthiness will be considered during the loan application.

Know What Lenders are Looking For

Commercial lenders are looking for a business which is in stable financial condition and has been for at least three years. The lender is also looking for the ability to repay the loan and to have a cash reserve in place if needed. Before you begin a loan application, you should carefully consider how well your business will fare when they are judged on the three C system.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Thursday, March 22, 2018

Defining Working Capital Commercial Loans and Their Good and Bad

Do you wish you could obtain working capital commercial loans to help your business? Level 4 Funding shares the pros and cons of these loans.

The amount of cash a company has to cover standard business operational needs like employee payroll, rent, monthly utilities, paying vendor and more is called “working capital.” Working capital can really come in handy if a new or growing business hits a slow patch or is having growing pains while expanding. Without an extra cushion of working capital to cover these everyday expenses, a company could go out of business or have to file bankruptcy or foreclose on their property. So working capital commercial loans really can be the difference between your company’s success and its downfall.

Working capital loans have lots of benefits. They generally have a very quick approval process, which means you can receive the money you need often inside of a week after the loan is approved. Unlike other types of conventional loans from traditional lenders, there are no stipulations on how the funds from the loan are used. The application process is not as complex as others can be and even if companies don’t have perfect credit or are still establishing credit history, they can still have a chance of getting approved for these types of commercial loans.

There are some drawbacks to these loans, as well, that lendees should know about. For example, due to the fact that they are bit more lenient in some ways, such as credit check and application process approval, these loans typically require that borrowers to put up a specific amount of collateral to obtain the loan. Because they have shorter terms, working capital commercial loans also have higher interest rates than longer-term loans from conventional banks’ repayment schedules.

These loans are ideal for businesses that aren’t “typical” and therefore don’t usually have an easy time getting loan approval from other lenders.

Sometimes lenders require the funding to be used in a certain way (such as for equipment like machinery or computers). But because working capital loans don't, this can be beneficial for companies that don’t need equipment or small or new businesses that could really use the cash to get up and running or through a difficult patch when cash flow is tight. This is also great for niche companies that need supplies or equipment that doesn’t fall in the typical range of what traditional lenders recognize.

If you need cash and you need it now, this is the type of loan for you — and there are lots of lenders that specialize in this exact type of loan.

It’s important to work with a trusted and experienced lender — regardless of the type of loan you need.

Regardless of your business status, credit history or any other factor, it’s important to deal with a lender that you trust to get you the best loan for your needs with the best terms. Do some research on local lenders in your area that specialize in these loans and don’t assume the first lender you meet with will be the right one. Be patient and don’t jump into this important decision too quickly.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Wednesday, March 21, 2018

The Requirements for Securing Commercial Real Estate Loans

Due to the dollar amount of most commercial real estate loans, the criteria to qualify is more stringent. It’s important to understand these requirements before you apply for a loan.

Not only are commercial real estate loans substantially larger than most other loans, they are also inherently more risky. This increased risk is due to the fact that most businesses financial health is very closely tied to the overall economy unlike the financial health of a consumer which is more insulated. To offset this risk as much as possible, lenders are much stricter about the qualifications for commercial real estate loans.

The first step in securing a commercial mortgage is to have the property appraised. Legally, the lender will need to have this process completed but it is not a bad idea for the borrower to also have an appraisal completed. It is critical that the property value be equal to or exceed the amount of the loan being requested. This is simply because the property will be the collateral for the loan. Most lenders want to see the property value at least 20% greater than the loan amount to ensure that the collateral is always greater than the outstanding balance of the loan.

When a business entity is making the purchase, the lender is going to want to verify that the business is financially stable and has the ability to make the loan payments. The lender will request documentation to verify the cash flow of the business as well as the debt that the business is carrying. Lenders prefer to see a steady net income 20% greater than the debt. It is also important that the business have some type of savings or other assets which are very liquid in the event that the business slows and cannot make the loan payments from the months’ income.

If the business entity does not have a strong credit history or is relatively new, the lender will require the owner of the business or owners to become personal guarantors. This basically means that the business credit history does not merit the loan and the owners are willing to use their personal credit history and scores to obtain the loan. This also means that the owners are willing to use their own personal funds and property as collateral for the loan.

Understand What Lenders are requiring

In many cases there are nonrefundable fees which must be paid to apply for commercial real estate loans. Knowing that your business or your personal credit is strong enough to secure a loan is very important before you begin the long process of a loan application and pay the fees to have the application processed. If you have any questions about the qualifications, you should invest your time in more research.

Due Diligence

There is a lot to understand when seeking a commercial loan and researching the process, the potential lenders and the criteria for securing a loan is a very smart choice. Speaking to a local bank or a mortgage lender is a good way to gather information and learn about the process to help you avoid wasting both time and money if you are not prepared to meet the loan application qualifications.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Understanding the Logic behind the Process of Commercial Real Estate Loans

Getting approved for your first commercial mortgage can be a challenge. The best way to ensure a successful loan application is to have a good knowledge of commercial real estate loans.

There is a lot more to obtaining commercial real estate loans than you might first think. The process is more complicated and lengthy than even the most difficult residential home purchase. But because of the significant amount of money involved and the added risks, lenders are much more selective when it comes to approving an application.

Technically, commercial real estate loans are secured by liens on the property which is being purchased. That property is the lenders security and ability to recover their money if you default on the loan. But there are additional factors which make commercial real estate loans much more risky than a residential loan. First, commercial real estate values can fluctuate very rapidly. This can leave a lender repossessing a property which is worth far less than the remaining balance on the loan. In addition, the business which is purchasing the property has a greater chance than a consumer of suffering financial hardship as a result of a sudden change in the economy.

Because of the increased risk that the lender is facing, interest rates are higher and loan terms are shorter on a commercial loan than they would be on a consumer loan. Most commercial loans are for a ten year period or less as opposed to a residential mortgage which can range from 15 years to 40 years in some cases. And even with these shorter terms the interest rate for a commercial loan is about 1% higher. Commercial lenders also require a 20% down payment in most cases. This gives the added security that the property will always remain greater in value than the amount of the outstanding balance of the loan.

The Application Process

When applying for a home mortgage, borrowers must be able to demonstrate that they have the ability to afford the monthly payments and that they have steady income. Commercial borrowers much also prove that there is a means of making the loan payments. But because a business is more reliant on the overall economy, they must show that the business is in good financial health, that it is being managed well and that it has sufficient cash reserves to weather a financial down turn or hardship. In some cases, the owners must also include their personal financial documentation if the business has poor credit, no credit or has not been in operating for more than 5 years.

Understanding the Lending Process

All lenders are in business to make money. Understanding that fact makes it easier to understand why commercial lending can be difficult to secure. The increased risk that the lender faces needs to be rewarded with higher interest and shorter repayment terms. In addition, the lenders are more careful about the creditworthiness and the financial health of the borrowers. With the economy having a bigger impact on businesses, lenders want to verify that a business is stable enough to survive a short economic crunch or down turn in business. Know this information and creating a loan application package that demonstrates your financial stability will greatly increase your opportunities for commercial financing.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Tuesday, March 20, 2018

Criteria for Selecting Commercial Lenders

Evaluating commercial lenders can be a difficult task. But preparing a list of criteria to use for selecting the best lender to meet your needs can be a great time saver.

As a business professional, both your time and your money hold a great deal of value. So it is important to find a lender who will meet all of your needs. Ideally, you will be able to evaluate enough commercial lenders to select a few to forge long term relationships with to ensure continued financial prosperity. The process will undoubtedly take some time but the long term benefit will be a good working relationship with a primary lender as well as other secondary reputable lenders.

Commercial lenders are all about money. You would not be seeking a commercial lender if you did not need money. But you should look at these relationships as you would any other vendor who is supplying a good or service to your business. You need to compare the merits or the service each lender is willing to provide to you. This means what type of fee structure are they offering, what is the interest rate and how quickly can they deliver on their product; your loan funding.

You will also want to evaluate the core qualities of the lenders existing clients. Do they cater to a certain industry or type of loan? Do they have a specific loan size that they tend to service? Are they familiar with your business and the type of loan that you are looking for? All of this information will help you to determine the level of responsiveness and the quality of the service that you will receive if you do business with the lender. Customer service might not jump out as an important factor when securing the loan but if you ever have an issue or want to restructure your loan, then customer service could be one of the most important features the lender offers. Think long term for customer service and product lines available. Meeting your long term needs with a single lender will save you a great deal of time in the long run.

Comfort and Compatibility

Think of your lender as a strategic partner. You will need to discuss confidential financial information as well as other proprietary information about your business. It is important that you are working with a lender with whom you have a certain comfort level. The more honest and up front you can be with your lender the more benefits they can provide to you.

Invest Time to Evaluate for Long Term Success

Creating a list of criteria to evaluate commercial lenders will require an investment of your time today. But the benefits will continue to reward you each time you complete a new loan from your lender or seek advice. Carefully consider the fees and interest rates associated with the different lenders, but also recognize the added value that customer service and fast response time can add to your relationship. Knowing that you have a lender who will meet all of your needs for the long term is worth the time involved in a careful selection process.

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Key Differences between Commercial Loans and Residential Loans

Knowing the differences between commercial loans and residential loans will help you to understand the lengthy process when applying for a commercial loan.

Most consumers think that the process to apply for a residential loan is fairly in-depth and thorough. But if they were ever to apply for a commercial loan they would begin to look more favorably on the residential loan application and approval process. Because of the larger sum of money involved and the greater risk and volatility in the commercial real estate market, commercial loans and the application process can be very intense.

When a consumer applies for a mortgage, the lenders first concern is their income and its stability as well as their debt load. Consumer’s debt should be no more than 45% of their income. But commercial lenders are more interested in the ability of the property to generate income to pay the loan. This is called a Debt Coverage Ratio and lenders prefer to see the ratio at 1:1.25 at the least. This means that the income to cover the loan payments is relatively secure.

A down payment on a home is somewhat negotiable and in some cases is very, very small. But due to the increased risk associated with commercial loans, these down payments are normally 20%. This gives the lender the added security of knowing that the property is valued at 20% more than the initial loan amount. Even in the event that the borrower defaults early in the loan, chances are good that the property is still valued at the full payoff on the loan.

Time Is Critical for Commercial Loans

A normal residential mortgage loan can range from 15 years to 30 and some even stretch as far as 40 years. But a commercial mortgage loan rarely exceeds 10 years. This is because lenders want to decrease the risk of the loan by getting their money back faster. In addition, consumers can pay a mortgage loan off early and save some of the interest that they would have paid over the term of the loan. This is not the case for a commercial mortgage. And in fact, there can be penalties which must be paid called prepayment penalties. In more cases the penalty decreases the further into the loan you progress. But the lender wants to be sure that they make their desired profit, or earning, on each commercial loan they write.

Not Really Even Similar

A consumer mortgage and a commercial property loan are only similar in the fact that it is a loan to purchase property. The dollar amount of most commercial loans is substantially larger than the average home loan. In addition, commercial real estate values are very volatile and can change drastically and very quickly. This is an added risk for the lender. Due to these increased risks, lenders are much more particular about the loan applications which they approve and the terms for which they will offer the loan. Having a good understanding of the lenders approval criteria can save a borrower a great deal of time in completing lengthy commercial loan applications if they don’t meet the lenders criteria.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Sunday, March 18, 2018

Tips to Obtaining Hard Money Loans Fast

Hard money loans are used for short-term projects, usually ranging from as little as 30 days to 5 years. But these loans also come with higher interest rates. But if you need to get extra finances quickly, this type of funding is the right choice for you.

Fast approvals are usually quite easy when it comes to hard money loans. On top of quick approvals, these loans also come with high flexibility and less documentation is required for approval. Usually they are used as a last resort when unable to get a mortgage, but it can be well worth it.

If you are looking to finance a real estate investment, this type of funding is very beneficial in its own ways. The application process is much shorter compared to other loans. Financial history of course does play a role, but other factors come into play as well. Many lenders aren’t concerned with the present value. Their main concern is to see that in a short time, they will be able to make their money back on the investment, including interest.

Since lenders are looking more at the final project, making plans for the property plays a big part and can help you get hard money loans even faster. Most of the time, funding is provided in just a couple of weeks. But if need be, you sometimes can get the funds as little as just a few days, all depending on the lender and certain circumstances.

The first thing to do to obtain a loan quickly is to gather all of the important documentation.

Gathering all of the important documentation and information needed for lenders is one of the most basic factors for a speedy process. Things that lenders are looking for include: what kind of property you are looking to invest in (residential, commercial, industrial or land), the estimated value of the property, the requested loan amount and how the loan with be paid back (this includes the terms of loan, the length and monthly payments).

Not only is the process of getting funds quick, so is the application.

Unlike other loans, hard money loans come with much easier applications. In fact, the application is only 5 pages long. The entire process will even go quicker if you are able to present all of the information that the lender needs sooner rather than later. This is why organization of all of your documents and plans come in handy.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Saturday, March 17, 2018

Why There are Mixed Signals for Commercial Loans in 2018

Many are optimistic for 2018 to be a great year when it comes to commercial loans, but others are also preparing for some bad financial scenarios to hit this year.

The multifamily market on the west coast could be a cause for some concern. Rental rates have increased, causing the market to be unsustainable. Also, there is stiff competition among lenders, which leads to many dealing with commercial loans to expect an intense 2018 among lenders.

Because of this tough competition, lenders are starting to take more risks by approving higher-risk commercial loans. And if the market takes a turn for the worse, this could put many lenders in a bind. Even though signs do point to a stable 2018, lenders should be prepared in case of a sharp turn.

But the majority in the industry think that momentum from 2017 will carry over into 2018. They also this that not only will there be stability, but that the commercial industry could even see a 5 percent increase.

Many are optimistic for 2018, but some of the issues could be the start of a downfall in the market.

The issues with stiff lender completion and increase in rental rates could be the start of the marketing taking a turn for the worse. It might take a couple of years, but the impact could start in 2018. Especially if the issues continue or if new issues come up.

Some bad signs are also hitting office properties and retail stores.

More people are starting to work from home, which is becoming a bad sign for office properties. With people using their home as their office, there is no need for office spaces, which is leading to a higher vacancy. Retail stores are also starting to lay off more employees, which is another bad sign. That means that they could be on their way to going out of business, leading to the vacancy of even more spaces.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

How to Raise Your Business Credit Score for Commercial Loans

Your business credit score will play a role in approval for commercial loans. If your business is just starting out, you might not have an impressive credit score, but there are things you can do to boost your credit score to avoid denial.

Credit score is reflection of your financial history and that means you want it to be great because it says a lot about your business’ credibility and stability. It also plays a part in getting approved for extra funding and is a good way to avoid having to pay higher interest rates or higher fees.

There are things you should do to boost your credit score. One of the easiest ways to do this is to always make payments on time to creditors. Making payments early will boost your credit score even more. Those with perfect credit scores are known for having a track record of making payment early. Start doing this sooner rather than later, the longer you do this, the better your score. You want to use your credit cards, this can help increase your credit score, but avoid hitting the maximum limit.

Keep in mind that public records will also play a role in your credit score on top of getting approved for commercial loans. Things filed like judgements, liens and bankruptcies are public record and could have a negative impact on your credit score. That means all of the hard work you have put in boosting your score could go down the drain. You want to avoid having anything financially wrong on your financial record.

Borrow from the right lenders, ones that actually report to credit bureaus.

It is okay to be picky when it comes to choosing the right lender. Commercial loans can boost your credit score but making payments on time, but they need to be reported to the credit bureaus. That is why you should always ask your lender beforehand if they report. Banks usually always report, but it is not a requirement for lenders to do so.

Building a better credit score has its many benefits.

Having a good credit score will help with many things like lower interest rates on commercial loans or credit cards. Plus, you will usually be able to come to better terms with supplies, attract new customers and establish a good reputation with existing customers. Of course, credit scores can be calculated in a variety of ways and can vary, but always try to keep as up to date as you can on your current credit score.

Technorati Tags: commercial loans,commercial lending,commercial mortgage