10 Things I Know About...Commercial Loans
10. BANKS ARE LENDING
Contrary to popular belief, commercial loans are available to qualified borrowers, especially from your local community banks.
9. SWEAT THE DETAILS
A well-defined loan request should detail how much you want to borrow and for how long, the purpose of the loan and how it will be paid back.
8. THE GOLDILOCKS PRINCIPLE
Don’t request either too large or too small a loan; the amount you are seeking to borrow should be realistic for your needs.
7. GET PERSONAL
It is helpful to develop a relationship with a specific branch officer at your bank, so that person gets to know all about you and your business.
6. BUILD A RELATIONSHIP
Offer to have a full banking relationship with the bank, including both business and personal accounts. Refer your family, friends and neighbors.
5. SECURING THE LOAN
Be sure to have adequate collateral available to secure the loan.
4. BE RESOURCEFUL
Use the resources that are available from agencies serving small businesses, such as the SBA, SBDC, SCORE, etc.
3. THEY ARE KEEPING SCORE
It is important to maintain your personal credit scores at a high level, as these are taken into consideration by commercial loan officers.
2. COVER YOUR BASES
Have alternate sources of funding available as a cushion to tide you over during the uncertain times; it rarely goes as planned.
1. HAVE A PLAN
Have a well-developed, detailed, written business plan to give to your bank when you apply; this is the key to getting a loan.
John McKenna is the senior vice president and director of commercial lending at Commerce Bank in Worcester.
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