Business Credit Application Made Simple

Laid eyes on a business credit application lately?

How did you feel as you flipped through pages of requests for your personal and business information?

Most would argue that completing the loan application is nothing short of intimidating. But it doesn’t have to be that way. Why not avoid the shock. How?

  • Educate yourself on what’s going to be requested.

  • Understand what lenders look for (aka underwriting).

  • Have a loan package together and available before you apply.

  • Strengthen each underwriting factor lenders are considering.

Here’s questions asked by business owners…

Your Questions

How do lenders underwrite? How do they determine if I qualify?

Loan Package - What’s that?

How can I improve my chances of getting approved for a secured business loan?

Real Answers

How do lenders underwrite?

Lenders underwrite 2 entities with 4 factors in mind.

The 2 entities are:

  • You as an individual and/or business

  • The proposed collateral

Each must able to stand alone since they will each be underwritten separately.

For example, you may have perfect credit but still not qualify for a loan secured by commercial property because the income from the property is poor or has not been established for a significant period of time.

How do they determine if I qualify?

The 4 primary factors they review are

FactorHow lender determines
Credit WorthinessPersonal credit, Business credit
IncomePositive income for at least 6 months to 3 years
ExperienceYears in business, Business plan(s), Years as an investor
StabilityYears in business, Years of consistent income in the black (not red)

How do they find out if you and your collateral can withstand the test? Drum roll please...

The Infamous Business Credit Application and Supporting Documentation.

Loan Package - What’s that?

Regretfully, the lender assumes that everything you write on your application is a lie. To confirm the information they request untold amounts of supporting documentation.

The compilation of all of these documents makes up your Loan package.

For example, the package on a business loan secured by commercial property would include things like…

  • Personal financial statements

  • Business financial statements

  • Subject Property financial statements aka historical income and expense statements

  • Rent rolls

  • Leases

  • Corporation documents

  • Personal tax returns

  • Business tax returns

  • Bank statements

  • Pay Stubs

  • Business Plan(s)

  • And more…

They basically want your entire financial life story!

How can I improve my chances of getting approved for a secured business loan?

Have your loan package already together and available. Yes, it impresses lenders so when you have your ducks in a row.

Easier said than done though right?

The secret lies in updating all of your financials at regular intervals. At least monthly but preferably weekly.

What are you using now to update your financials regularly? Could you benefit from changing your routine? How about starting a routine to begin with?

Need help with this? Most of us do.

So we hire professionals like accountants, bookkeepers, and brokers.

Or at least use professional software to help us keep up with our transactions on a weekly, even daily basis.

Also, be determined to strengthen each underwriting factor as mentioned in the table above.

When empowered with these skills and knowledge, the business credit application becomes simple stuff.

Return from Business Credit Application to Business Loans

Enjoy this page? Please pay it forward. Here's how...

Would you prefer to share this page with others by linking to it?

  1. Click on the HTML link code below.
  2. Copy and paste it, adding a note of your own, into your blog, a Web page, forums, a blog comment, your Facebook account, or anywhere that someone would find this page valuable.

(630) 755-6979

If you would like to learn...

How to get through the entire commercial loan process WITHOUT...

  • Waiting 6 months to close

  • Loosing $1,500 or more in non-refundable fees

  • And without the increasing chance of rejection

For $169 FREE...

Here's your chance.

When you finish this “7 Day Commercial Loan Process Mini E-Course!”

You'll understand how to do all of the above.

You'll also know how to quickly and easily qualify for a commercial loan.

When you get your copy, we're certain you be pleased with...

  • How much time, money, and energy you save

  • How much your cash flow increases

  • How your loan actually integrates with your goals and dreams and

  • How your bottom line skyrockets

Click here to get started.