Being Approved From Atlanta Private Commercial Lenders

By Tom G. Honeycutt


As a business owner, you have bills that must be paid, inventory that must be purchased, and other expenses that will need to be addressed soon. If you lack the cash flow, you might consider applying for financing through Atlanta private commercial lenders. These finance companies may have strict criteria that you must meet first to be approved. You can fill out an application and better your chances by knowing what those standards are.

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 might also consider what other assets you have on hand. Your building, equipment, and inventory can all be sold if you fail to make payments and default on the loan. To be approved, the company might ask that you put up your assets as collateral to secure the balance of the loan.

A company from which you apply for financing will likewise check out what other liens you took out in your name or your business' name. It will not want to add to your financial burden by giving you money that you may be unable to pay. You better your chances of approval if you have most of your outstanding balances to other creditors paid in full.

These standards are common when it comes to being financed through private commercial lenders in Atlanta. You can better your chances of approval by knowing these criteria upfront. You likewise could meet the standards by paying off balances and securing assets.




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