As a business owner, you have bills that must be paid, inventory that must be purchased, and other expenses that will need to be addressed soon. If you lack the cash flow, you might consider applying for financing through Atlanta private commercial lenders. These finance companies may have strict criteria that you must meet first to be approved. You can fill out an application and better your chances by knowing what those standards are.
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.
You also may be required to give details about how long your business has been in operation. Most lending companies prefer businesses that have been in operation for years rather than months. Long-established companies translate into solid customer bases that help bring money into the businesses.
It also translates into plenty of invoices and accounts receivable that can be put up against a loan balance. This lending process is known as factoring. Factoring involves a lender buying your accounts receivable and forwarding you the money. It is one of the more common lending options for people who have less than ideal credit.
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.
Most lending companies will also ensure that you are not overextended on credit and that you will make it your top priority to pay off the loan that your financier extends to you. When you owe money to multiple creditors, it could mean you are unable to make payments on time. You might pay off what you owe to other companies first before applying for new financing.
These standards are common when it comes to being financed through private commercial lenders in Atlanta. You can better your chances of approval by knowing these criteria upfront. You likewise could meet the standards by paying off balances and securing assets.
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.
You also may be required to give details about how long your business has been in operation. Most lending companies prefer businesses that have been in operation for years rather than months. Long-established companies translate into solid customer bases that help bring money into the businesses.
It also translates into plenty of invoices and accounts receivable that can be put up against a loan balance. This lending process is known as factoring. Factoring involves a lender buying your accounts receivable and forwarding you the money. It is one of the more common lending options for people who have less than ideal credit.
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.
Most lending companies will also ensure that you are not overextended on credit and that you will make it your top priority to pay off the loan that your financier extends to you. When you owe money to multiple creditors, it could mean you are unable to make payments on time. You might pay off what you owe to other companies first before applying for new financing.
These standards are common when it comes to being financed through private commercial lenders in Atlanta. You can better your chances of approval by knowing these criteria upfront. You likewise could meet the standards by paying off balances and securing assets.
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 Real Estate loans in Atlanta he recommends you check out www.ifundinternational.com.
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