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813-566-1441 info@spearing.capital

You are ready to expand your business or renovate the facility that you are currently in. Whether you are purchasing commercial real estate or adding equipment to your production floor, you will need cash to pay for these improvements. A loan can give you the money that you need at the moment with the opportunity to settle the debt over a period of time. These are the items that you will need to obtain this financing. 

How Much the Company Is Worth

Before your company will give you a loan to develop new products or update your commercial real estate, they will need to know what the net worth of your business is. To determine this number, take the amount of cash and possessions that you hold as assets. Subtract from that amount what you already owe in debt. The financing that you request must be lower than this final total. If it is higher, the bank might ask for some type of additional collateral to secure it. 

Your Latest Credit Score

Another item that you will need to qualify for a commercial loan is a decent credit rating. This figure is determined by the amount of debt that you have and if your payments against it are on time. Even though there are multiple factors to determine your financing, you will want your number to be high to get the money that you need, especially if you are investing in commercial real estate. Request a copy of your report to find out if you are in the range required. If it is a little short, take the time to pay off other items then attempt to reapply. 

Experience In the Field

Having experience with what you are doing will also be a deciding factor when you apply for a loan. The bank will want to know that you have been in the industry for several years and are aware of what to do if there is a lull in business. If you have just opened your company and are new at what you do, consider waiting a while before you request financing. You may have to look for an alternative means to purchase your commercial real estate. You can also talk to an advisor to see if they can recommend another option to get assistance with this. There are programs through the Small Business Administration that might be more ideal to your situation.