Okay, you’ve got your million dollar idea, now it’s time to put in the work on it. Your business model is set, or already budding. All you need is the physical space to grow in. Whether you’re initially building your business or you’re expanding into a larger space, you’ll need to secure the necessary funds to invest in your business’ new home.The only thing standing in your way then becomes the business financing or commercial loan lender. There is a process that the auditors take in regards to deciding how much (if any) money you can be lent and what the terms of the loan will be. Although there is much that is out of the borrower’s hands, there are a few things that you can take into account to hopefully get the best rates possible. The following are some of the criteria that a loan auditor will judge your commercial loan application on for business financing.Your Business
First of all, are you an already established business that is looking to take the step to the next level or are you a young start-up business that is looking to build a customer base. If you’re already established, a loan auditor will want to see that you’ve got an established customer base that is not only growing, but will follow you to the next step that you’re planning on making. If your business is a start-up, you’ll need to prove that your business plan is well thought out and will succeed. Only a thriving business can pay back a loan, and an alternative financing lender isn’t going to want to risk money on a pipe dream.Your Market
Next, you’ll need to assure the business lender your plan has an untapped or growing market that requires the alternative financing to reach. Think about it this way; no one’s going to lend you money to invest in a dying or oversaturated market. Prove that your market is lively and booming through research, solid numbers, and area analysis. A loan auditor will take both your information and passion for the project into account.Your Finances
No matter how strong a business idea, you’re not likely to get business financing from a lender if you’ve got a poor financial history yourself. Take a look at your credit report. If it’s not looking stellar, there are steps that you can immediately start taking to begin to remediate that problem. Also, a clear outline of what every bit of the alternative financing will go to will work heavily in your favor. Show the loan auditor that you understand the gravity of business financing and can spell out exactly what each cent will do to make your business stronger.A little preparation and your meeting with the loan auditor should go very well. Alternative financing is a big step is making your business aspirations come true. Make sure that it is a financially sound and safe step by preparing you business plan and finances beforehand and getting the best loan terms possible.