A small business owner, an entrepreneur planning a startup or even a larger established business may all need a commercial real estate loan. These loans can be used to purchase property and buildings to set up a business or to expand an existing business.
In Helena, MT, as well as throughout the state, it is more difficult to obtain a commercial loan than it is to get a loan for a residential property. There are several factors that contribute to this, but the risk of the lender is the primary reason.
There are several ways that an existing business owner or a startup company can present information to a lender in a way that is clear, accurate and reflects the potential for the company to succeed. Taking the time to prepare prior to the application for a commercial real estate loan will increase your chances of being approved.
Develop a Business Plan
A detailed business plan will be a priority for any lender in Helena, MT. This should include information on the existing business and where the business is earning a profit. The next part of the business plan should include the intended use of the loan and how it will impact the business in a positive and measurable way.
Finally, the business plan should also detail how the loan will be repaid as well as how other bills and ongoing expenses, such as equipment, materials, employee payroll and other expenses will be kept current.
Talk to the Lender
Doing business with a local lender, such as a credit union, is often a very good option for a small business or a startup company. As they are located within the community and are non-profits, they tend to be more accommodating for commercial loans. They often provide lower interest rates than and faster approvals than banks or other commercial real estate loan providers, including the Small Business Association.
