Commercial lending is the process
of loaning money to established entities, like businesses and corporations. Commercial lending is different from that of other loans, as in many cases a
bank or other financial institution are more focused on the actual cash flow of
the business first and then any assets that can be used as collateral as a
secondary basis.
The process for applying for a
commercial business loan is actually very long and will require several
different documents to present to the lender. These documents, when put
together, are known as the loan package. A loan package gives the lender all
the information that is need to gauge the viability of the loan request and
enables them to provide the proper loan.
All commercial lenders are
different, so it’s important that when preparing for a commercial lender and
thus putting together the loan package that it is custom made to that of the
lender the business is going to. This will help you secure the working capital
and financial security needed to effectively run your business. When preparing
the loan package, organization is an important key, especially as there is a
lot of paperwork involved.
Include a table of contents, along with
including tabs or other visuals that can help the lender find the information
that they are searching for. This will make the process go much smoother, as
well as taking less time than if the loan package was unorganized, explains Carlos Hank Rhon. The loan package
should of course be in paper form, but it also depends on the preference of the
lender, hence why it is important to make sure that the loan package is
customized.
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