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.
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