When you are ready to start a new business venture or expand the existing one and don’t have enough money to go ahead, you can ask for a commercial loan from the bank of your choice who will consider many things before they decide to grant you the loan. Any business venture needs prime property in a good location to make a go of it. Before you even think of getting ready to borrow, you must have your business plan drawn up with a rough estimate of the kind of profits you hope to make within a period of several years, a portfolio of all your assets and supporting documents to show the bank to prove how serious and trustworthy a businessman you are.
The Location of the Property
This is very important. You have to be sure that the property you have decided to buy is exactly what you want. There is absolutely no point in going to a bank or a lender to ask for a loan to buy something you have not even seen or evaluated. The property has to be seen by the lender as well, as otherwise they will not even consider granting you a commercial loan. Keep in mind that once you have signed all documents to purchase the property, it will be difficult to change your mind if you come across something better.
Selecting the Lender
This can be a difficult process, especially if you are new to the area. You can inquire from real estate agents in the area or better still check for lenders in the local newspapers or the internet and do some research before approaching them. Don’t rely on just one lender. Seek out as many as possible so that you can select the one who gets you the best deal. It will be even better if you can locate a finance broker who can act as your agent since they have connections to the best lenders in town and will be able to negotiate on your behalf. This way, you will not have to waste half your time roaming round the city, visiting banks and submitting your application.
Finding an Experienced Lawyer
You might not think so at first. Lawyers however do come useful when you have to check the authenticity of documents, check the title deeds and ensure that all financial transactions are legal and above board. As a layman, you cannot be expected to know everything and it could a very minor matter that was not paid any attention to that could land you in big trouble later on. So do get a good lawyer who orchestrates the proceedings smoothly.
Finally, when everything has been sorted out and you are on the verge of buying your property through your commercial loan, check everything once again, pay attention to all the little details you might have thought unimportant. Consult your broker and lawyer at all times and make sure you have all the relevant documents checked and signed so that your hard earned money and your precious time will not have been spent in vain.