If you have the need to purchase some commercial property, you will want to remember that there may be more than you will need to do in order to get an approval than you would have to do for a piece of residential zoned land. To help yourself through this process, you will want to review the following tips.
Have Your Business Plan Ready
Many lenders are starting to want to know about your business plan so they can have faith that your business venture will succeed. The reason they care about the success of your plan is because if your business goes under, you may have a hard time making the payments on the commercial loan that they gave you. If you have never written a properly formatted business plan, you will want to hire a professional to do it for you. Not only will it read well, but the skilled business plan writer will know the specific information many lenders are looking for.
Find Additional Sources Of Money
The less you need to borrow for the purchase of the commercial property, the easier it might be the lenders to approve your application. You could put down your own money, or money that you receive from government grants to get your business up and running. Take some time to search online for government grants that you may be able to qualify for. You may be able to apply for more than one. For example, there might be grants for first time female business owners or for businesses that will come to an impoverished area, as the business is going to help the local economy.
Consider Using Some Collateral
If you have some collateral that you can put down for the commercial property financing, you might want to consider using it. While you might not want to risk your primary residence, if you have a vacation or rental property, you could always use that. This will show the lenders that you are extremely serious about your obligation to repay the loan, as you have a lot more to lose than just your good credit score.
It would also be a good idea to take some time to check out a few different lenders. Do not just accept the first offer you come across, as it might not be the best deal for your business. Working with a commercial loan officer might help even more.