Three Things to Do if You’re Turned Down for a Commercial Loan
Business is tough and it is even tougher when you go to a bank and ask for a commercial loan, only to be turned down. To avoid the adage about doing the same thing over and over with the same result, do some investigation into the matter and do some basic sleuthing to discover the cause:
Find Out Why You Were Turned Down
This isn’t always easy, because commercial lenders are not held to the same requirements as residential lenders. If you are turned down for a home loan you will receive a notice of the denial with an explanation. If you are dealing with a commercial lender, first ask if they will offer you an explanation for the denial. If they say no, carefully check your application paperwork; there may be a process to request information about denied loans. Make sure all requests for information are in writing, and you normally have only 60 days to make any request or appeals.
Check Your Credit Rating
Once again, personal loan rules are different from a business loan. You will receive a notice of which credit bureau was used for your credit check on a personal basis. If an agency was used for a business credit check, you may not receive this notification. So, make the effort to check your business credit numbers, they may provide clues to your rejection.
Plan B Awaits You
There is a very good Plan B waiting for you at Shop Commercial Mortgage. We don’t use credit ratings to determine your loan approval. We look at the accumulated equity in your commercial property, as well as income and profit/loss information. Our terms are flexible from one year to several. We offer up to 55% LTV loans with minimal hassles and quick closing. You can have your money typically in 14 days or less.
So if you have been turned down for a commercial loan, don’t go back to the bank and do it over and over. Come to Shop Commercial Mortgage and get the money you need!