An entrepreneur on the threshold of starting a new venture will need a certain money base to kick-start his efforts. He/she can use a commercial loan to access sufficient funds to operate the business and to slowly take it to success.
Most entrepreneurs will head to the bank for this source of much needed cash. Unfortunately, most banks have certain prerequisites that only a select few can fulfill. It is often, that very successful and promising loan applications are turned away.
Disadvantages of taking out a commercial bank loan:
- The bank application process is lengthy; banks take their time in verifying all the credentials and details about a business before sanctioning a loan.
- Bank loan applications and the paperwork and detailing they require are cumbersome and time consuming for the busy entrepreneur.
- Banks give preference to established businesses with a financial history to gauge the applicant’s profitability and to evaluate the risk of issuing a loan.
- Banks are known not to agree to grant the whole amount requested for a loan. They may only grant 70% of what the applicant asked for. Forcing the applicant to turn to private lenders to complete the remaining sum of the loan.
Thankfully bank loans are just one of the various options available for small businesses to raise funds. Sky Financial Corporation – The Mortgage Center commercial loans are convenient and accessible and we offer multiple loan options to our clients. Contact us today to schedule an appointment with one of our financial associates. 1-800-472-9791.