Friday, October 9, 2015

Approval From Atlanta Private Commercial Lenders

By Tom G. Honeycutt

As a business owner, you have bills that must be paid, inventory that must be purchased, and other expenses that will need to be addressed soon. If you lack the cash flow, you might consider applying for financing through Atlanta private commercial lenders. These finance companies may have strict criteria that you must meet first to be approved. You can fill out an application and better your chances by knowing what those standards are.

With the economy still rebounding, credit still plays a large role in whether or not people get approved for loans. When you fill out an application, you will be asked for your Social Security number so that you can undergo a credit check. The credit check may determine in large part whether you get the loan and if so, for how much money you will be approved.

The longevity of your company may also be taken into consideration. Companies that have been in business for years tend to fare better than those that are new to the market. Established companies tend to have solid customer bases that bring money into the business. This solid stream of customers means that you have a relatively stable cash flow.

Solid customer bases also mean that business owners like you collect on a steady stream of invoices. Accounts receivable tend to be popular assets considered by some financiers because the accounts receivable will be paid at some point in the future. They are guaranteed money. In a process known as factoring, your lender may buy those invoices and give you the money in return.

If you lack invoices, a company may still consider what assets you have free to put up against a loan. Assets that are free from liens can be appraised for their dollar value and used to secure the balance. If you default on the loan, the lender can then seize these possessions and sell them off to recoup the money that you owe it. Property, equipment, and inventory tend to be popular assets.

A company from which you apply for financing will likewise check out what other liens you took out in your name or your business' name. It will not want to add to your financial burden by giving you money that you may be unable to pay. You better your chances of approval if you have most of your outstanding balances to other creditors paid in full.

When you knowing these details first, you can better your chances of approval from one of the private commercial lenders near you in Atlanta. The process can be intimidating when you lack this information upfront. However, being aware of what is expected of you can allow you to apply in a responsible manner.

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