Selecting a Lender for Business Loans

When you have a solid business plan, the next step is to select your commercial loan lender - one of your business loan sources for business financing, commercial loan and small business loans. Here are some tips to take into account to help you choose.

Tip #1 - Look For a Commercial Loan Lender Specializing in Your Business

If your business is in manufacturing high-tech parts, or delivering edible fruit baskets, or providing home redecorating assistance, for example, look for a commercial loan lender that has a specialty in your particular type of business. Having specialized in making loans to businesses in your field will give you a leg up, possibly, in securing your business loan. Think of it this way: Every little advantage helps.

Tip #2 - Find Out Average Size Loan Lender Typically Makes

It's important to determine the average size of business loan your commercial loan lender typically makes for businesses similar to yours. If your financial requirements are several hundred thousand dollars, it doesn't make sense to choose a lender that typically makes loans in the $100,000 and under range.

Tip #3 - How Long Has Lender Been in Business?

You're search for lenders should include checking out the length of time the commercial loan lender has been in business. This only makes sense, since banks and lending institutions come and go. An established track record over decades, especially with loans to businesses such as yours, is more attractive than one that just cropped up in the last year.

Tip #4 - Check Out Major Banks

Advantages of major banks are that they offer a wider variety of services and have more locations. This may be of particular interest to you in your search for a lending institution for your business loan if you will require extensive services and need to be able to utilize more than one location. A commercial loan lender with numerous branch locations across the U.S. is a good starting point, at least one to consider adding to your list.

Tip #5 - Don't Forget Small Community Banks

Close to where you live and operate your business, small community banks are many times your best commercial loan lender, again, depending on the needs of your business, how much in the way of business financing you require, their specialization (or willingness to take you on), and other factors. It may be that because they know you're in the community, they'll extend you greater consideration than another business. It's certainly worth adding them to your consideration list.