Commercial Loan Processing - Outsourcing Strategy for Mortgage Brokers and Lenders

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There are so many financial institutions, lenders and mortgage brokers that receive tens of thousands of loan applications every month from customers and for them; the need for effective commercial loan processing arises. Financial institutions are very particular about this stage of the loan process as the failure of any professional to conduct his/her duties effectively leads to bad loans, one of the reasons for the current global economic downturn.

Commercial loan processing involves the various stages that a particular loan application goes through to ascertain whether the application meets the laid down regulations of particular lender. These are basically the processes that inform a lender whether your loan application should be granted or disapproved. The tedious and complicated nature of this job means that many people in the loan industry are not big fans of it in spite of its obvious importance.

The first step of commercial loan processing involves the completion and submission of a loan application by an applicant. This is only possible in most cases after a particular financial institution has assessed the personal and financial circumstances of the prospective applicant such as his /her level of income, current debts, etc. as well as other important considerations such as the purpose for which the loan is being sought, etc. to prequalify the applicant for the loan.

The applicant will also be required to submit additional documents such as pay slips, bank balances, tax reports, credit reports, etc. as well as business plans and business profiles, if the loan being sought is meant to be invested in that business. Most commercial loans also require applicants to submit some form of collateral such as stocks or bonds, real estate and other forms of guarantees.

The next step of commercial loan processing involves the assessment of the submitted loan documents by a loan officer to determine whether everything is in order. The loan officer may also ask for additional documents to enhance your application and once he/she is satisfied with the documentation regarding the application, the application package is sent to a loan underwriter.

The loan underwriter finally assesses your application by taking into perspective the loan amount being sought, the purpose of the loan as well as the accompanying documents to determine whether to approve your application or refuse it. This normally takes about five working days.

Once the loan underwriter approves your application, you will be handed a letter of intent to sign after which you may be handed any costs associated with your application such as appraisals to settle.
The final stage of commercial loan processing involves the resubmission of the application to the underwriter for approval, after all conditions have been met. Once this stage goes through, the final loan documents will be handed to the applicant for him or her to append the final signature.

The loan will be transferred to the applicant after all the conditions have been met, through a banker's draft, cashier's check or bank wire.

Choosing Your Banker for Commercial Loan Financing

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Starting a business is a difficult and arduous experience. In order to reduce stress and maximize profits in the long run, it can be helpful to know some basic information on how to choose the right banker, especially if you need commercial loan financing. First, before you start the research on commercial banking, it is a good idea to write down a list of all your business needs in addition to commercial loan financing. Looking at this list and prioritizing your needs will allow you to find out which ones best fit your business. After you have done this, you should start comparing different commercial banks by visiting their websites. Looking through various websites will allow you to easily find out if they have online banking, where their branch is located, and what type of services they can offer your business.

Once you have found a commercial bank that best fits your needs, it is always a good idea to build a positive relationship with your commercial banker. This is important because your commercial banker will be investing in you and your company, so having an overall pleasant relationship with them from the beginning will make it a lot easier on everyone. In addition, your commercial bank should not only have a good relationship with you and your business, but they should also be able to understand your industry as well. From there, they can work to figure out which commercial loan financing is best for you, and how to accommodate any of your business needs. One example of a potential business need could be an employee benefit program. Some commercial banks offer PayDay Programs, Employee Benefit Programs, and 401K Corporate Benefit Plans. If you decided to implement one of these plans you should make sure that they are FDIC insured so that they don't lose their value over time.

Another business need that many companies look for are business money market accounts. The primary reason for companies to use money market accounts is to get a positive return on their original investment. While all commercial bankers can make you some profit, you need to look into what their current rates are and how often they fluctuate in order to get the most out of your money. However, in the end it really comes down to you and your specific business needs. Overall, knowing your business needs, doing the proper amount of research, and building a long lasting and enjoyable relationship with your commercial banker will give you a positive and profitable commercial banking experience.

Business Startup Loans - Live Your Dreams

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You have an idea in your head, an idea of a new business venture. It is something you believe in, you not only want to do it because you will earn money and make you reach new heights, but because you want to show your creativity, your originality to the world because it will give you satisfaction and pleasure. To put your ideas into actuality, the only thing you need is a good financial back up, but what are you to do if you dont have one? Are you just to let your dreams go by and work on something that doesn't interest you? No. the way out of this fix is to opt for Business Startup Loans.

These loans are of two types; secured and unsecured. The lender gives you a separate borrowing amount range and repayment period in each case. In both the cases, the period given to repay these loans is more than enough, though it can be extended if you give the lender a prior notice about the same sighting valid reasons.

Business Startup Loans come with their own merits and demerits. Secured type come with the benefit that the rate of interest charged on them is relatively lower than that charged on unsecured type. Their only compulsion is that you are required to mortgage some land holdings with the lender as security, whose value is in sync with that borrowed, which will be ceased in case you are unsuccessful in repaying the debit. In case of unsecured type, its merit is that you are not required to mortgage any property with the lender as security, which in turn puts him at risk. Thus, the rate of interest charged in relatively higher. You must prove to the lender your capacity to repay, by showing that you have a good enough paying job. Bad credit holders can also apply for this financial help. You can also apply for this loan online. Once the lender confirms that your provided credentials are true, you are entitled to receive this loan.

Business Loans - Tips For Getting Funding

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In an economy where most bank doors remain closed to small business owners, it might be useful for a business owner to understand the qualities that a loan underwriter looks for in an applicant who is seeking a loan.

It goes without saying that every bank has their specific requirements. Generally, however, these are the factors considered.

• First of all, you should know that some banks will base their decision purely on numbers. They will just plug in the financial numbers of your business, your credit scores and other numerical information into a software program and wait for a reply. If your numbers are great, these banks are fine. If your situation is unique, you want to look for a funding source that factors in human evaluations.

• The next thing to do would be to communicate your needs very clearly to the banker. Tell them that you are looking for a certain principle at a certain rate. Many banks will often offer you a fraction of what you asked for after a long approval process. Communicating your requirements to the banker very early in the process will help you avoid wasting your time with banks that would never give you a loan.

• Avoid loan brokers or third parties who arrange loans as they can charge you exorbitant fees that will add to the cost of your business. Moreover, you have a much better chance of approval if you personally dealt with a bank yourself. If all fails, then you can consider these funding sources.

• When approaching a bank for a business loan, make it very clear to them that you want to keep your personal and business credit separate. Some banks will approve your business loan but peg it to your personal credit history which will make it very difficult for you to make a large personal purchase such as a house or real estate. Some banks will not want to work with you if you request that the two credit scores be kept separate. You should not mind this and only work with banks that are willing to treat your personal credit and business credit separately.

• You must understand that a bank will take all your expenses into account when they consider your business loan. This will mean that they will look at your rent, mortgage, car payments, credit card payments, utility bills and so on. Thus, you will have to match all these expenses by reporting all your income, apart from the business income. If you have a spouse, report her income and also report income that you receive from financial investments such as stocks and bonds if you have any.

Assuming you have a writeable loan request, the primary battle in getting funding is to find the right source and then position your application correctly. Get these two right and funding should be just around the corner.

Business Financing Is A Secured Loan A Good Idea

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In today's economy, finding funding for a new business can often be challenging. Taking out a secured loan is one option to help finance your business, but it is not the right choice for everyone. Still, compared to some options, such as maxing out your credit cards, a secured loan may be a preferable choice when it comes to financing your start up. Indeed, maxing out your credit cards is not a good idea especially if you know that it will take a while for you to get your return of investment. For this reason, you would need to think about a way to borrow money with low interest rates and easy payment terms and conditions in order to run your business.

Securing your business loan with a valuable asset or property should be approached with caution as well. When it comes to getting a secured loan, you should keep in mind that if you cannot meet your obligations you will lose the property you have used to secure the loan.

You also should compare your various options when it comes to applying for a secured business loans. It makes sense to go for the best secured loans out there because lenders will not usually hold you by the neck with high interest payment rates. There are many lenders out there who will entice you into borrowing money from them. Never go for the fast loans that ask for a far too high interest rate that you would frequently have a hard time paying back. You need to carefully scrutinize the loans that are being offered to you, because if you don't, you might just end up losing both your business and your property.

Oftentimes, it is very tempting to grab the very first loan opportunity that comes your way because you think you couldn't get anything better. But if you have a valuable asset that will serve as collateral for a loan, you can be assured that you can find the right loan with some time and research. There are quite a good number of reputable lenders and institutions that offer secured loans with reasonable interest rates and payment terms.

With a secured business loan, you need to constantly remind yourself that you are making a loan against your property (or other valuable asset) and that failing to pay these types of loans is not an option. The lending company will gladly take possession of anything you place as collateral for the money you borrow from them. Therefore, it should be advisable and wise to choose the amount of loan amortization that is best suited to your current financial situation and which can be repaid without difficulty.

Benefits Of Factoring Accounts

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One of the major problems that all businesses, irrespective of their type, market, service, dominance and position of the market or size will face at sometime or another, is the potentially devastating and crippling impact that a limited cash flow can have on the business as a whole. When a business suffers from restricted cash flow, this makes it much more difficult for them to satisfy their own creditors and the debts that they owe to these creditors. In order to do so, the business will be required to use the working capital reserves that it owns to remedy this situation.

Unfortunately, working capital reserves are by no means infinite and so the company may find itself in the dangerous position of having exhausted its working capital reserves before any revenue or income has been received from its customers. What this means is that while the company itself is still owed money, it also owes money and so the people it owes money to may decide that they are not comfortable or happy with waiting around for the payment...and so may impose pressure.

This can take the form of a supplier who refuses to provide additional stock until payment is received, or in the guise of a creditor that decides to initiate litigation proceedings for the recovery of the debt. In short, poor cash flow directly influences the solvency of a business and as such then, should be carefully monitored and controlled.

One of the best ways to inoculate against the risks of cash flow and the dangers that it will bring to the business owner is to make use of factoring accounts. By factoring accounts, the business owner will receive a substantial amount of money which is directly proportionate to and determined by the net value of the invoices that it owns and which have money owed on them.

One of the most commendable features of factoring accounts is that they are truly democratic and universal, and the reason for this is that the credit rating of the business will not affect their eligibility to these. Specifically, the business owner will benefit from this as it means that they will not have to contend with the delay that the processing of red tape will inevitably bring for them as the factoring agency is left to audit their creditworthiness.

Therefore, factoring accounts is possible and accessible to a company that has underwent or is currently undergoing, the bankruptcy proceeding.

Furthermore the business owner will also benefit from the fact that the factoring agency will be assuming responsibility for the checking of the credit checking of the customers themselves. In addition the factoring agency will be passing on this information to the client company who will then have a better idea as to how much bad debt (debt that they will not be able to recover the money owed on)that they are currently facing.

Factoring accounts is a competitive market with plenty of providers, and this in turn directly equates into cheaper fees

Advice for Funding Mines and In-Ground Assets

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Since the international institutional banking collapse in 2007 miners and would-be miners have been searching high and low for ways to fund their projects. Many were operational and had their credit lines cut which brought there mining efforts to a slow death. Others had dynamite projects that simply got shut out of the credit markets because institutional funding didn't have the liquidity to fund their start-ups.

Mines are being funded today. Naturally, those being funded would more likely tell you that they won the lottery than reveal their private funding sources and educate their competition. Both the funding sources and the mine owners are under strict NCND's and naturally honor them.

To tap into the capital to get your mining project funded, there a few essentials to crossing the proverbial finish line. First, the mine must have very solid geological reports stating proven reserves. To arrive at a proven reserve figure, a geologist must visit the site, take samples and send them to a reputable laboratory for testing. Once the results are returned, the geologist can then asses the data to provide a report that clearly states the proven reserves contained in the the mining claim. Reports that give estimated, inferred, or probable reserves are simply not acceptable by any funding source. The reserves must be proven and stated so by a geologist.

The other critical components to a successful funding are a sound business plan, pro forma, and reasonable use of funds. It is easy to separate the good projects from the great projects by reviewing the details, vision and action plain of the business plan. Many investors have seen successful mining operations from start up to full production. Any inaccurate or absent information in the business plan will immediately cause them to question the competence and experience of the management team.

Owning the asset is also important. Most banks and investors prefer to see the asset already in control of the borrower. The borrower must be able to fully and wholly pledge the asset to the lending partner at the time of closing. For this reason, it makes purchase transactions less attractive. If a borrower is purchasing an in-ground asset and seeking debt or equity financing, the lender is going to want to see a substantial amount of capital ready to be invested into the project. Purchase transactions where the borrower has little invested is possible, but the borrower can expect to give up a majority of the equity in the profits and projects in order to secure the financing.

A Little Information on Commercial Truck Financing

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Land, labor, capital and enterprise are the basic needs of a business. Without these an entrepreneur cannot start his or her business. The most important of these resources is capital. It is very important for an entrepreneur to have adequate capital or finances to stay afloat. For this reason many banks and financial institutions have been established, they give put loans to their members for commercial and domestic reasons. If you have a commercial truck business then, you can get your commercial truck financing done from one of these banks or financial institution. As the number of banks and financial institutions are increasing the amount of competition among them is also increasing. This is why their services have become affordable i.e. their rate of interest is affordable. But before you get a membership at one of these places, you need to make it a point to check all the policies.

For commercial truck financing you need to calculate the exact amount before you ask for a loan. These banks will want to check your credit record to check the risk involved if they sanction a loan. They may probably refuse to finance your business if your credit record is bad. The rate of interest will depend upon the amount to ask for. Similarly the period for returning the amount will also depend upon the amount being sanctioned. Some banks or financial institutions may not give you the entire amount at one time. They may give it to you in two or three installments. All these conditions depend upon the amount of loan you take. You need to make it a point to choose a reputable and well established bank. This will help you enjoy some additional benefits. You should get your research done before you choose a bank. To make things easier for you, you should consider getting your research done online, as the internet is the best resource for getting any kind of information.

In you commercial truck business, you should also make sure that all your vehicles are insured. There are many agencies from you can get commercial truck insurance. You should make sure that you get full coverage as this will take some burden off your shoulders. Sometimes these agencies will also provide insurance for the driver of the truck. This will help you save on getting an additional policy done for your employees. This is why it is essential to choose the right agency.