At Smartline Mortgage Brokers Rockingham, our mortgage brokers handle both home loans and business loans in the Kwinana, Rockingham and Baldivis areas. While many think business loans are like home loans but bigger, the truth is that the requirements are more stringent because there is more risk involved.
Unfortunately, this means that many would-be borrowers disqualify themselves by failing to fill out their application properly, often embellishing in the mistaken perception that it will make them “look better” to lenders. Others simply fail to prepare, which is just like preparing to fail.
Here are some tips for submitting a successful business loan application.
When lenders see risk, the interest goes up and the chances of approval go down. Present yourself and your business as low-risk. This may involve changing your business plan.
Keep Paperwork Up to Date
Make sure that you have paid all of your taxes. You should also present an accurate picture of your assets and liabilities, including records for at least 3 years and at least 6 months of bank statements. Plus, you should know your net worth.
Ask for a Specific Amount
Ask for exactly what you need and tell them what you plan to do with it.
Make Sure You Know Your Profit
If you are already in business, be prepared to show the lender your bottom line— your accountant should do this for you.
Know Your Credit File
Check your credit and repair any negative entries.
You must have a solid business plan to show the lender. They see planning as less risk—and we agree with them.
Prepare forecasts for projected profit, loss and cash flow.
Check yourself in all major search engines to make sure there is no negative information about you on the internet.
Find the Right Lender
We recommend hiring a broker such as Smartline Mortgage Brokers Rockingham to find the right lender and loan for you. We can save you a lot of legwork and sometimes heartache as well. Brokers know which lenders specialise in what kinds and sizes of businesses and can steer you clear of those who don’t lend to your kind or size of business.
Call us today on (08) 9527 1800 to learn more.