Читать книгу How to Get a Business Loan for Commercial Real Estate - Charles Ph.D Barthelemy - Страница 4

“FAILING TO PREPARE IS PREPARING TO FAIL” This quote applies to everything that you may do in life along with obtaining a business loan for your existing or start up business. There is an old saying, “You must learn how to crawl before you learn to walk.” LET’S CRAWL!

Knowledge and Experience

Just like any job that you would apply for, you need to create combined personal and business resume for the business you are seeking funding for.

These are some of the key points you should focus on:

A)How many years do I have in this industry?

B)What is my management experience? How many years?

C)Have I owned or co-owned a business of this caliber before, and if so how long?

D)Show numbers. Did I increase the profits of the company? Did I save the company money etc.

E)Make sure you know the depths of the business that you are seeking money for.

F)Know the history of that industry. You can GOOGLE for a more in-depth knowledge that will “wow” the funding source you are seeking money from.

Note: It is difficult to state you need money for a Daycare center and your experience is in repairing cars.

CASH INJECTION

You must show that you have some “skin in the game.” What I mean by this is how much money you have to put toward your project.

A)Your lending sources will generally want to see at least a 10 to 15 percent cash injection/ down payment. This percentage is based on the total amount that is being borrowed.

B)You can use your savings, 401k, IRA or borrow from relatives.

C)You may have established a relationship with a private investor that believes in your business, and willing take the risk of helping you financially.

Note: The funding source will not take a 100% of the risk. Why: If you don’t pay the loan back you have nothing to loose. YOU CAN WALK AWAY AT ANY TIME, SKIN IN THE GAME IS VERY IMPORTANT. This shows the funding source how committed you are to making the business work, the more money you are able to put down the stronger your chances are.

CREDIT

Today’s market is not what it used to be 5 years ago, you must have a good credit score.

A)Your credit score must be 650 or higher, this is all three credit bureaus (EquiFax, Trans Union and Experian)

B)No derogatory items on the credit report. This means no late payments, no bankruptcies, no tax liens, and no foreclosures.

C)If these items are on your credit report, you will want to have a very good explanation along with documentation to support your case.

D)Existing trade lines on your report should all have at least a three year payment history that displays no late payments.

E)Existing trade lines should consist of: Mortgage on a home, or lengthy rental history, credit cards that are 50% or below the limit (This can be but not limited to, department stores, American Express, Visa, Master Card etc.)

F)For credit restoration you can contact First Stone of Atlanta @ www.firststone.com