This presentation shows how you can get a Commercial loan even if your credit is less than perfect. You will learn the best tips of various sources of funding and what to avoid to do so.

1. 9 Steps to Apply for a
Commercial Loan

2. The credit market is getting tighter and tighter

3. It’s becoming ever harder to obtain funding

4. It’s becoming ever harder to obtain funding
Especially with the dwindling home equity
values which is traditionally the main source of
personal funding for loans

5. So what options are left for obtaining commercial loans?

6. Step 1: Check Credit Report
• Your credit rating is a leading influential factor in the
loan qualification process
• Even if you have the best borrowing, repaying, and
money management habits, your credit report may have
a few surprises
• Check your personal credit report as the owner of the
business and the business credit report for errors
• Report errors and try to correct them before
approaching lenders for new loans

7. Step 2: Evaluate Long Term And
Short Term Financial Position
• How is your business doing financially at the
moment?
• How has your business financial health been in
the past?
• What are your financial short term expectations
for your business?
• What are your financial long term expectations for
your business?

8. When evaluating your financial position, you
have to ask yourself the following:
• What equipment do you need?
• How long do you intend to run the equipment?
• Are there tax benefits you can take advantage
of?
• How will the new purchases affect your
business cash flow?

9. Step 3: Get Advice
• Before you think of getting a loan, get qualified
advice from business experts
• Talk to a financial consultant, a management
consultant, a qualified accountant, or your banker
• Talk to the Small Business Administration (SBA) on
ways to get loans and how to manage business
loans
• Get expert business counseling from groups such
as the Service Corps of Retired Executives (SCORE)

10. The qualified advice you should seek
include:
• Advice on how to source business loans
• Advice on how to manage business loans
• Advice on how to make a comprehensive business
plan
• Advice on how to implement business strategies
• Advice on how to avoid taxation problems
• Advice on how to take advantage of tax breaks

11. Step 4: Prepare A Business Plan
• Before talking to your lenders you need to have a
plan on how the commercial loan will benefit your
company
• You need a comprehensive business plan that
outlines how your company will benefit
• Your business plan should clearly spell out what
additional gains you expect
• The business plan should include a workable and
sustainable loan repayment plan

12. If you need help with making your
business plan you may:
• Consult the SBA
• Consult SCORE
• Consult Women’s Business Centers (WBC’s)
• Hire a small business consultant
• Check for free and paid templates online

13. Step 5: Determine Your Financing Needs
Once you have a complete business plan, you
need to determine how much you need
• What does your business need to start, grow, or operate at a
profit?
• Do you need any new equipment?
• Do you need new staff?
• Do you need new premises?
• Do you need new advertising, marketing, or sales
campaigns?

14. As you analyze your financial needs, ask
yourself the following:
• Will the loan meet those needs?
• Will the business benefit from these financial
needs?
• Exactly how much do you need in terms of
new financing?
• How long will it take to meet the goals set to
be achieved by borrowing the loan?

15. Step 6: Explore Lending Options
• Who is in a position to lend your business the funds
it needs?
• Which lenders give the best terms when financing
businesses such as yours?
• Which lenders do you already have a working
relationship with?
• Which lenders can afford to finance your kind of
business at the scale you are seeking?

16. As you explore lending options, these are
some of the lenders you need to look at:
• Commercial banks
• Credit unions
• Mortgage companies
• Credit card companies
• Peer to Peer lenders
• Friends and family

17. Step 7: Research Loan Parameters
Your next step is to find out the terms and
conditions of the lenders
• How much is the maximum and minimum amount you can expect from
each lender?
• What are the minimum requirements to qualify for a commercial loan?
• Do you need to come from a certain geographical location?
• Do you need collateral?
• Do you need to have been in operation for a particular amount of time?
• Do you have minimum and maximum repayment periods?
• Do you need other signatories or guarantors?

18. Step 8: Send In Your Application
• Finally you are prepared and everything is in place
• Fill in all the necessary forms
• Attach all relevant documents
• Get all necessary signatures e.g. from business
partners
• Include copies of any business licenses that may be
needed

19. Step 9: Make An Appointment And
Plan Your Presentation
• Loan officers get lots of financing requests every day
• Make a professional package with compelling content
• Include a great executive summary that is brief, concise, and
conclusive
• Make an appointment so you can do a short face to face
presentation
• Include visual aids to make your presentation interesting
• Do not overlook necessary documents. Include bank
statements, business projections, graphs, charts, and accurate
financial statements.

20. To make a good impression with the loan officer
and increase your chances of obtaining a
commercial loan remember to:
• Be honest
• Be organized
• Be confident
• Be direct
• Be interesting
• Be formal
• Be knowledgeable

21. Take Advantage of Competition
• Even though the recession is still on, lenders are still
willing to give money to businesses
• As a commercial borrower, you need loans that come
with easy terms and conditions
• Show each loan officer a comparison of what other
lenders are willing to offer you
• This may lead the loan officer to approve better
terms for your business financing
• Do not make a final decision before reviewing what
different lenders are offering

22. Customize The Loan To Fit Your Business
• If your business has low and high seasons seek out a
loan with a seasonal payment plan
• This means you can pay full installments when
business is good, partial installments when business is
fair, and get payment holidays when you get to pay
nothing at all
• Ask for a step-down payment program where you get
to pay higher rates when your revenues rise

23. Things To Avoid
•
Do not procrastinate: Business opportunities are time
sensitive. Apply for your loan now when the opportunity for growth
still exists
•
Do not under-estimate: Taking on a small loan for a big project
will result in an incomplete project that cost you money but cannot
earn revenue
•
Do not over estimate: Taking on a big loan for a small project
will result in huge installments that cannot be serviced by the
project’s small earnings
•
Do not fail to plan: This will very likely result in lots of wastage
•
Do not fail to implement: Changing your business plan on a
whim will result in many of your goals and targets not getting
achieved

24. Prepared by
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