Business Loans - Be Ready For These Lender Questions

Business Loans - Be Ready For These Lender Questions

Given this, it should be no surprise that lenders have more than a few questions they want to hear answers to before they will loan significant amounts of money to your business.

Basic Questions

Let's start with the basic questions you can expect. These are simple, but you will be surprised how many people are unprepared to answer them. Hesitation is death when speaking with a lender. You need to convey that you have an ironclad plan and that means having answers ready for the following questions:

What do you plan to do with the loan amount?

How will you repay the loan on time?

What loan amount are you seeking and why do you need that specific amount?

Can you offer collateral and, if so, what is it and the value?

Will you personally guarantee your business? This is a tricky question. Ideally, your answer should be no as you should keep business and personal credit separate. However, if your business is in desperate need of money, you might not have an option and might have to personally guarantee your business. Think this one over very thoughtfully.

These questions may seem simple, but you need to think out concise, direct answers. Sadly, the lender isn't just going to take your word for it. Even the best verbal answers aren't worth anything if they are not supported by documentation.

Every answer you give needs to be supported with documentation. How will you repay the loan on time? You should tell the lender you can do it because the property revenues provide more than enough to meet the obligation. Then you should show them. Pull the information you have supporting the income being produced, the expenses and the profit. Show how the said revenues more than satisfy the payment on the loan that you are asking for.

This should be a trend for every answer you give. Words are cheap unless they are supported. If you can't support them with documentation, then you better be one heck of a salesperson because the lender is going to be a hard sale.

Thomas Ajava writes about commercial financing loan topics for CommercialFinancingLoan.com

POST COMMENT

1000 Cash Loans-Get Cash Right Into Your Bank Account Money loans bad credit-Just cash, no credit checks Live Chat May Not be Good for Your Business Why Businesses Need Data Center Services? Small Business SEO - Vital Facts You Have To Be Aware Of Local Mobile Monopoly Review – Business Tool of the Future? Impact on Outsourcing business process and customer Support Services Invest In Effective Banners & Display Stands to Promote Your Business! Why Article Marketing Is An Integral Part of Your Business Online Marketing And Advertising And The Cash Cookbook Same Day Payday Loans No Credit Checks-Generate Cash On The Same Day Of Application 1000 cash loans-Life savers at emergent times 3 Month Payday Loans: Easy cash for any unseen and unexpected financial emergency