When you decided to start a small business, you may not have been thinking about all the financial requirements. The idea and process of getting a commercial loan may seem overwhelming, but once you know what to expect, it’s not too bad. Let’s talk about how to navigate the commercial loan process.
- Get pre-qualified. To start off, the commercial loan process can be extensive and tedious. One way you can make it easier is by getting prequalified. Getting pre-qualified allows you to see how much lenders are willing to let you borrow, gives your lender the chance to see what programs would be best for you, and allows you to compile all the documents you need.
- Don’t rush the process. Next, it is important not to rush the process. Once the application is received, your loan officer will start reviewing all of your information. They will review your credit reports, your collateral, and your income. They will also decide if you need to give them additional documentation. Unfortunately, this step is a waiting game, so don’t worry if it takes a while to get a response.
- Work with a lending company you trust. Finally, because the commercial loan process is so intimate to your business, it is important for you to work with a lending company that you trust. You will be giving them vital information, including your bank statements, income reports, and access to your credit history. If you do not have a good relationship with the lender you are working with, it can make the commercial loan process even more stressful.
If you have never applied for a loan before, the commercial loan process may feel overwhelming. The good news is it doesn’t have to be. Your first step is to get prequalified. Once you are prequalified, you should be careful not to rush the process, and you should partner with a lender you trust. If you are looking for a commercial lender in the Denver area, Aspen Commercial Lending can help make the commercial loan process a breeze.