People who own their own businesses nearly always face financial hurdles. It takes plenty of money to buy inventory, pay employees, and meet other important expenses. When your own cash flow is lagging, you may find it necessary to apply for financing through one of the Atlanta private commercial lenders near you. You can boost your chances of approval by knowing the lending criteria in place.
With the economy still rebounding, credit still plays a large role in whether or not people get approved for loans. When you fill out an application, you will be asked for your Social Security number so that you can undergo a credit check. The credit check may determine in large part whether you get the loan and if so, for how much money you will be approved.
Another consideration for finance companies involves how long people have been in business. Businesses that have been in operation for years fare better than those that have only been open for a few months. Financiers want to know you maintain a client base that will keep you afloat financially until you pay off the balance of the loan.
It also translates into plenty of invoices and accounts receivable that can be put up against a loan balance. This lending process is known as factoring. Factoring involves a lender buying your accounts receivable and forwarding you the money. It is one of the more common lending options for people who have less than ideal credit.
A lender may also investigate if you possess other assets that can be used to back up a lien. The building in which your business is located, as well as the equipment or inventory that you have on hand might need to be put up as collateral. The financier will feel more secure in giving you money if it knows it can seize those assets and sell them if you default on payments.
You may find it difficult to get financed if you are already overextended on loans. Too many loans can be a threat to your approval because a company will think you will be unable to pay your balance on time without financial difficulty. It helps if you pay off your balances to other creditors first before applying for a new loan.
When you knowing these details first, you can better your chances of approval from one of the private commercial lenders near you in Atlanta. The process can be intimidating when you lack this information upfront. However, being aware of what is expected of you can allow you to apply in a responsible manner.
With the economy still rebounding, credit still plays a large role in whether or not people get approved for loans. When you fill out an application, you will be asked for your Social Security number so that you can undergo a credit check. The credit check may determine in large part whether you get the loan and if so, for how much money you will be approved.
Another consideration for finance companies involves how long people have been in business. Businesses that have been in operation for years fare better than those that have only been open for a few months. Financiers want to know you maintain a client base that will keep you afloat financially until you pay off the balance of the loan.
It also translates into plenty of invoices and accounts receivable that can be put up against a loan balance. This lending process is known as factoring. Factoring involves a lender buying your accounts receivable and forwarding you the money. It is one of the more common lending options for people who have less than ideal credit.
A lender may also investigate if you possess other assets that can be used to back up a lien. The building in which your business is located, as well as the equipment or inventory that you have on hand might need to be put up as collateral. The financier will feel more secure in giving you money if it knows it can seize those assets and sell them if you default on payments.
You may find it difficult to get financed if you are already overextended on loans. Too many loans can be a threat to your approval because a company will think you will be unable to pay your balance on time without financial difficulty. It helps if you pay off your balances to other creditors first before applying for a new loan.
When you knowing these details first, you can better your chances of approval from one of the private commercial lenders near you in Atlanta. The process can be intimidating when you lack this information upfront. However, being aware of what is expected of you can allow you to apply in a responsible manner.
About the Author:
Tom G. Honeycutt is a full-time real estate entrepreneur in Atlanta, GA. Tom helps readers by providing practical and useful knowledge to better understand lending choices. If you are looking for Instant Private Lenders Home Loans in Atlanta, Georgia he recommends you check out www.ifundinternational.com.
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