Being an online merchant is really neat because you can start your own business from the comfort of your very own home. The point is that eventually, as your business grows as it should, you are going to need to get a bigger property to accommodate your growth. You will need to hire employees, which means getting an office. Also, you might need some storage space, as in a warehouse, and you might even need some manufacturing space too. However, you may not be able to afford getting a property of your own, in which case you will need to get a commercial loan. It’s not as easy as just saying the words, so here are some tips on how an online merchant can get a commercial loan.
The Down Payment
One of the first things that you need to know to get approved for a commercial loan is that you have to be willing to make a down payment. A financier, bank, or commercial lender will usually only be willing to loan up to 75% of what it takes to cover the costs of the property that you’re looking to open your online business in. That leaves you with the other 25% that you are going to have to cover in the form of a down payment.
Show Them That You Are Serious
What we mean by this is that you need to have a solid business plan ready to go when you approach a lender to get a loan on your property. Whether you’re looking to open up an office, a warehouse, or even a factory, you need to have a clear business plan on paper to put all doubts aside. Things that you will need are not only the business plan itself, but also things like the property’s previous income, its appraisal value, and any other important financial information. On a side note, make sure that all of this information is as up to date as possible because old information is seen as meaningless in the eyes of a bank.
Get an Appraisal
One thing is clear and that is that the bank or commercial lender you go to is going to do their own appraisal to make sure that they are not putting money into a worthless property investment. What you can do to get a fair third party opinion is to get your own appraisal done. That way you can make sure that the bank isn’t trying to pull a quick one over on you, in which case you could always try to find a different lender. That actually brings us to our next good point.
Don’t Go To Just One Place
Another good thing to do is to go to multiple places to try and get your loan. This is because different banks will be willing to give out different sized loans at different interest rates. Some banks might deny you, and some might give you a great deal. In other words, just fish the market a little bit and see where you can get the best offer.
Get A Lawyer
To keep things short, one of the first things that you will always want to do is lawyer up. You really do need a lawyer that is well versed in commercial property law as well as commercial loan laws as well. This will ensure that you won’t lose any money because the bank decided to strong arm you out of it.
Actually, one of the first things that you should do as an online merchant is not to go for a loan at all. The first thing that you should do is check with your local government as well as small business services to see if there are any grants to get. Grants are simply free money that any entrepreneur can get just for being an entrepreneur. And if free money isn’t a reality for you, there are always low interest loans to be had as well. These government agencies don’t give out low interest loans often, but along with the rest of our tips you just might be able to get one.