Robert Projeski is a leading property and business finance expert having appeared on radio and TV, written articles for most real estate and business publications in Australia, as well as a sought after commenter by various media and newspapers around the country. Here he shares some fundamental tips that will help you in obtaining finance.
Finding the funds may not be as easy as it used to be, but preparing yourself properly will place you in the best position to actually get the funding you want and get approved first time. When you apply for any loan, the lender will usually look at the following things in order to assess your application.
These are:
1) What is the loan amount and purpose of the loan?
2) What is the income and capacity to repay?
3) What is the value of the collateral?
4) What is the credit rating like?
5) What are the characteristics of the borrower?
Before you approach a lender, make sure you do some research as to who may be the most suited lender with an appetite for that type of loan, security and dollar amount for your desired loan. The key thing here is keep your options open and look at banks and non-banks. If your business is in a specialised field, there may also be specialised lenders that focus some of their lending to that industry.
Engage a mortgage specialist who can consider a variety of different lenders on your behalf before deciding to make an application with them. Commonly, you would have a short list of around 3 to 4 before obtaining the desired loan. The better your options of lender and the more ‘together’ your information is, the easier it will be to get the finance you require and get approved first time.
This is first article in a series on how to obtain the best finance for your business, investment or mortgage loan. Click here to read part 2 or here for part 3.