Caution…You are entering the “ding” zone

As an advocate for small to mid-size businesses (I am one) I give a word of caution when shopping for a loan. DO NOT shop 2 or 3 lending or credit institutions at once, every time you go they pull your credit and you get a “ding”.

  • Do your homework, Google can save you time and energy and money, shop on line for lenders who favor your type of business, i.e. best lenders for restaurants, machine shop, start up, poor credit etc.
  • Go to credit agencies where you can get a full and free credit report without “a ding”-like Credit karma (free).
  • Once you obtain your report see what you need to correct or challenge on any information in the report.
  • Have a game plan, why you need the money, how it will help grow your business, or start your business.
  • Correct BEFORE you apply, or at least have a reasonable explanation.
  • Find a lender who will initially accept the credit report you have provided to see if you can qualify with that lender.
  • Many lenders will have an on-line see if you qualify without affecting your credit (we do), it helps give you the direction for your next steps.

Simple steps to help you obtain the financing necessary for your business…oh, and read the fine print before you sign.

Be Prepared-Be Informed- Be Pro Active

www.lendingcapital.net

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Commercial Lending

Commercial lending made easy

It’s that time of year, holiday shopping, excitement for the holidays and….

Next years budget, marketing plan, and where do I get the money from? Party pooper huh? Well a word of caution to businesses shopping for money this holiday season-or anytime for that matter.

  1. Check your credit-credit karma is good because you do  not get any “dings” on your credit report.
  2. Correct anything that is not accurate NOW
  3. Do NOT apply at multiple lending institutions, select one and focus on that.
  4. Once you apply you get a ding, and every time you apply you get a ding-after about 3 dings the banks will give you a “dong”.
  5. Make sure you read all the terms and conditions BEFORE you sign.
  6. Make sure you can actually pay back the money.
  7. Create a marketing plan that makes sense and how you will achieve it and pay for it

Be informed, most banks do not like to lend to companies under 5 years,  2 years and under is very difficult same with start ups, there are factoring companies that can help, make sure you understand all the terms and rates in these type of companies!

Hope you all have a great holiday season and a very prosperous new year

http://www.lendingcapital.net