Applying for a commercial real estate loan through Commercial Lending Corporation (CLC) is similar to applying for a personal real estate loan. For instance, when you are purchasing a home, there are several pieces of data and information you have to obtain as part of the application process. You have to have your tax returns, pull your credit reports and score, and have proof of income to show you are able to pay back the mortgage. With a commercial real estate loan, you also need all of this information on your business, and, in some cases, on you personally, as well. In addition to credit reports, tax returns and proof of income, you may also have to provide business financial statements, such as balance sheets, accounts receivable, accounts payable, projected net earnings, and others. These accounting statements help prospective lenders quickly determine the profitability and risks associated with your business and with providing you a commercial loan.
However, most lenders do not base their decision just on your business’s financial statements and projected earnings. They also will look at what assets your business currently owns and how much equity you have in each one. Further, your credit history is reviewed by looking at the items contained in your credit report and your overall credit score. The amount of the commercial loan is even taken into consideration. For example, if you applied for a $100,000 loan through Commercial Lending Corporation for building rehabilitation, and you had $1 million in assets, and had satisfactory income levels, CLC would be able to find a lender able to underwrite the loan.
Tagged: Commercial Lending Corporation