What to Know Before You Go for a Commercial Loan

 

 

They really do. Making loans is how they make money. They want to make a deal, and you have to make them want to make a deal with you. This can be difficult however, because they want to have their cake and eat it, too. They want to make a deal with as little risk as possible.

 

 

 

No one really likes risk, but often time the riskiest plans come with the biggest payoff. It is a fine balance and lenders risk their livelihood trying to find that balance. They need to make loans, but if the loan doesn’t pay they have less than they had before. No loan is better than a bad loan, but neither are good. They need to make loans, and they need to be good loans. Simple, obvious, but a good thing to keep in mind. 

 

 

Bring to light all the reasons you are a low risk. Do you have stellar credit, awesome collateral, or a virtually fail safe idea? Convince them. Do whatever you can to show risk mitigation on your end. If you do not have much to bargain with, there is still hope, but be prepared to pay some hefty commercial loan interest rates in the name of high risk.