Commercial Real Estate Financing

Loan Evaluation Factors For small business entrepreneurs seeking financing

Before going to a bank or mortgage broker, you need to be sure that you have passed their ideal requirement standards . These standards are set out from the beginning of the application process to ensure that applicants will follow through on loan repayment. Special circumstances may apply if an applicant is weak in some of the requirements yet strong in others.

Applicant Factors

Superb credit ratings and no personal or business bankruptcy.

No prior arrests for theft, embezzlement, fraud, or drug/alcohol abuse.

Applicant has to have at least 20%, more often a higher percentage, of cash needed for the project.

Applicant has to have over 100% of Net Worth of the requested loan amount.

Have three years of tax returns to show income and standard of living. Although requirements of income may vary, you should at least be able to show that you a good share of inflowing income into the household.

3+ years of general management experience is highly recommended.