Commercial loans – The way to go

Many people fail to get business funding not because they were not worthy of loans but only owing to the kind of representation that they made before the lenders. Lenders and their underwriters do have time to go deeply into the project reports submitted by borrowers and try to understand what the borrowers want to convey. In other words, if the representations made in the project report are not crystal clear and supported by facts and figures, there is no point in making castles in the air.

Try to find the answers to these questions before you take any commercial loan. Do you know the ‘right funding source’ or are you groping in the dark without anything concrete in your hands? Have you checked before applying for loan that you satisfy the ‘eligibility’ criterion? Have you presented your case effectively before the lender? Do you know that ‘shot gunning’ will kill your chances of getting a loan?

Well, take all these questions into consideration before venturing out for business finance. I will tell you what ‘short gunning’ means. The basic concept is not to send your business proposal to multiple lenders at the same time without making sure that qualify for the deal. Lenders may reject your loan application on grounds that might well have been avoided had you known the conditions beforehand. The others may say ‘NO’ because they don’t want to be approvers of an application that already been rejected by so many. So, don’t fire shots in lots but tread cautiously.