Getting approved for a commercial loan

For those looking to form an LLC and are in the market for a commercial loan, Associated Content contributor Tracy Jacobs recently compiled guidelines to help navigate the process.

Because there are so many options, Jacobs first suggests talking with a lender to find out about the steps involved in getting a commercial loan, the time frame involved and the types of loans and rates available.

Business owners should make sure their personal credit is as close to flawless as possible, because it will be a big factor in receiving a loan, writes Jacobs. An individual’s debt-to-income ratio will give lenders a sense of his or her financial stability and ability to pay on time.

Providing two years of tax returns, both personal and business, and at least the last month of pay stubs at the time of application will speed the process along. Also, potentional borrowers should have the documents ready for whatever they plan to use as collateral, Jacobs explains.

Finally, Jacobs suggests signing a commercial guaranty, which affirms that an individual guarantees to make all payments on time and that the loan will be paid.

Allbusiness.com also suggests checking with the U.S. Small Business Administration to see what loans it can help with.

Melissa Clark
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Melissa Clark

Head of Content & Customer Marketing at Incfile
Melissa sets the vision for Incfile's content marketing and customer relationship management. Melissa has more than 10 years experience in various marketing roles, and a passion for supporting small businesses as they incorporate and grow. She loves sharing information that will help business owners maximize their LLCs, Corporations and Nonprofits. In her spare time, Melissa is an active member of The Junior League and enjoys running half marathons.
Melissa Clark
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