People who own their own businesses nearly always face financial hurdles. It takes plenty of money to buy inventory, pay employees, and meet other important expenses. When your own cash flow is lagging, you may find it necessary to apply for financing through one of the Atlanta private commercial lenders near you. You can boost your chances of approval by knowing the lending criteria in place.
With the economy still rebounding, credit still plays a large role in whether or not people get approved for loans. When you fill out an application, you will be asked for your Social Security number so that you can undergo a credit check. The credit check may determine in large part whether you get the loan and if so, for how much money you will be approved.
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.
When you have a steady client base, a lender will assume that you have plenty of accounts receivable. Your invoices can be used as collateral against a lien. The lender might purchase some of the invoices and then give you money based on those invoices' value. This lending process is known as factoring.
A lender might also consider what other assets you have on hand. Your building, equipment, and inventory can all be sold if you fail to make payments and default on the loan. To be approved, the company might ask that you put up your assets as collateral to secure the balance of the loan.
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 criteria come into play when you seek financing through a private commercial lender in Atlanta. These details determine if you are credit worthy and capable of making payments. You can better your approval chances by keeping these details in mind.
With the economy still rebounding, credit still plays a large role in whether or not people get approved for loans. When you fill out an application, you will be asked for your Social Security number so that you can undergo a credit check. The credit check may determine in large part whether you get the loan and if so, for how much money you will be approved.
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.
When you have a steady client base, a lender will assume that you have plenty of accounts receivable. Your invoices can be used as collateral against a lien. The lender might purchase some of the invoices and then give you money based on those invoices' value. This lending process is known as factoring.
A lender might also consider what other assets you have on hand. Your building, equipment, and inventory can all be sold if you fail to make payments and default on the loan. To be approved, the company might ask that you put up your assets as collateral to secure the balance of the loan.
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 criteria come into play when you seek financing through a private commercial lender in Atlanta. These details determine if you are credit worthy and capable of making payments. You can better your approval chances by keeping these details in mind.
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 Verified Hard money brokers in Atlanta, GA he recommends you check out www.ifundinternational.com.
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