Make your banker say ‘yes’ to commercial loans

Won’t you like your banker to always say ‘yes’ to your loan application? Well, you are not alone; it’s the wish of every borrower I meet. If we go deep into the study and try to find out some of the common grounds on which lenders refuse to sanction a commercial loan application, then we will find that all those shortcomings are very much vincible.

Your business plans and previous years’ tax returns showing your net income are the two most important aspects that the lenders are concerned with. I bet you must have heard questions like “Can you send me your business plan?” and “Our bank needs tax returns of past five years.” It will be wonderful if you have all the answers to these questions?

You can do one thing to avoid preparing business plans and waste hundreds of pounds in the process – look for a commercial lender that does not require any business plan for processing your loan application. Simple as it is, you do not need to spend your valuable time and money in preparing business plans. This is very much desirable when you have only a small financial need.

Regarding the lenders demanding your previous years’ tax returns, you can avoid that too. You should apply to those lenders who are willing to entertain your loan application on the basis of ‘Stated Income’. Very few lenders use ‘Stated Income’ (no tax returns) method for processing a commercial loan application. So, you will have to find out such lenders to get rid of the requirement of submitting tax returns.