How Do I Qualify for a Commercial Loan?
A commercial loan is similar to a business loan. In some ways, a commercial loan finances larger projects such as purchasing real estate and large equipment. To qualify for a commercial loan, applicants will need to fulfill a few requirements.
Lenders take into account how long the company has existed. They want to ensure that the business will still exist so that they can repay their debt. The bulk of companies that fail in the first two years fail because they lacked financing. However, that statistic doesn’t bode well for those seeking debt as a last-minute resort. Instead, lenders aim to fund companies that need it to continue improving their operations.
Applicants must show proof of their revenue for the last three years. Some lenders request $100,000 in turnover annually.
Sometimes lenders take into account the owner’s finances. It helps when the owner has a solid credit score and no bankruptcies on their record.
Business owners must attach business financial documentation to the application too. Lenders need to see the flow of revenue over the last three months. They also want to take a look at business tax returns. The goal is to judge the company’s financial viability.
Mortgage House clients in the Australian housing market receive access to our business loans and competitive rates. Plus, they receive introductory rates that make commercial finance more cost-effective.
Commercial Loan Qualification Conclusion
Those who need more information about qualifying for a Mortgage House commercial loan can speak with our lending specialists. Contact our team today.