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The weather turned frightful for large loans that missed the extended window of 3 - 4.6%. Although it’s always best to see the lowest possible interest when borrowing, sometimes time is the boss. It isn’t always prudent to refinance early - especially if you’re holding a loan with a prepay penalty. Making the best of a rate challenge involves looking at the long-range forecast and planning the types of deductions that create the most growth over the course of the length of your loan. Whether you’re getting a new loan or you're refinancing an existing loan, avoiding a prepay penalty may be your best move.

Nothing has the power to say, “I’m your mark,” as does sitting dumbfounded in a conversation you don’t understand. Language is a powerful tool and one that can be employed as a formidable weapon... https://www.garychromiak.co/.../bank-speak-103-defining...

So, you’ve got your ducks lined up in a row… good business plan, great product, capable representation, and yet - no loan!

If this has happened to you, the issue may be presentation. A commercial loan is an entirely different ballgame than the loan you took to buy your car. You not only need to be financially viable as an industry, but you also need to look good on paper. Assuming your numbers support the size of loan you need, a lender needs to see you qualify according to the bank’s parameters. An appraisal is required. In order to qualify for the needed appraisal, you’ll need to provide the commercial property’s income as well as expenses. Among many other items, have your personal financial statement ready to go. If you have a mixed-use property, expect to provide a rent roll along with essentials like utility costs, tax history, and maintenance expenses.

Borrowing 201: The Good, The Bad, and The SBA

Once you’ve established the nature and needs of your business, you’ll buy before you sell. The loan you’re seeking is a commodity, and it’s important to understand exactly how much it will cost.