Commercial Loan Application Process

A Company requires commercial loan to acquire lands, purchase more buildings for expansion or meet operating costs which vary during the year. By availing commercial loans, the company gets tax benefits also. You are running a business house and need commercial loan for expansion. You have to necessarily apply for the commercial loan.

You have to carefully plan, execute the process by correct follow through when applying for the commercial loan. The loan lender is obviously interested in knowing your purpose of applying for commercial loan. You have to meticulously calculate the approximate funds you require to meet successfully the planned action otherwise you will be paying more interest to the unnecessary excess money you have borrowed.

You have to be aware of depreciation of existing building cost, appreciation of raw material cost or that of the additional equipment periodically required. You have to seek guidance from a leading cost accountancy consultant in making the project report. Your application should be forwarded and processed sufficiently ahead of your planned proposal so that everything goes well in stipulated time.

It is better to approach a commercial loan lender whom you are familiar with or with another businessman who can influence the lender’s decision. Your candid expressions about your personality, your sphere of work, your customers, your five year plan etc. should be accurately presented to the commercial loan lender in a single file. You have to furnish details of collateral security, funds required, interest you envisage, requested repayment period in a presentable format. It is always good to consult friendly professionals and online advices about how these above requests are to be tabulated.

Standard commercial Loan application process needs the following details to be submitted by the loan applicant.

• First comes the amount requested.
• Terms of Credit Requested,
• Loan type i.e. Line of Credit, Equipment purchase, business expansion, Furniture or Fixtures,
• Refinance come next.
• Specification of intended purpose of loan proceeds is also important point to be presented.
• Details of unpaid taxes by the borrower
• Last but not the least the contingent liabilities.
• All other personal biodata regarding address and phone numbers are usual in nature.

If you are applying for individual credit relying on your own income or property and not relying on another person’s belongings, do not complete the section for marital status. If you are applying for individual credit with support from your relative or alimony, for repayment of credit requested, furnish all details about their assets and income also. If applying for joint credit with another applicant, complete all questions and the joint application should also be attached. If you are venturing to buy real estate with the intended commercial loan, submit data regarding area, maps, copies of title deeds, property valuation details and lease summaries.

With the application form, you have to submit last two year’s business returns, signed current financial statements for business, business plan, proforma for new business, Realtor’s market analysis of commercial property. With the commercial loan sanctioned, use the funds for the intended purpose of loan in a shrewd manner and achieve success in your new endeavor.