Sweetening the Commercial Lending Process

Your dream flower shop, that unexpected expense to replace old machinery, or a much-needed expansion for your thriving accounting firm. No matter the business or the reason, you need access to hassle-free lending options. The loan pre-approval, negotiation, and final approval process can be tricky to navigate, so let’s discuss some key points to landing a smart commercial loan.

How early should a business begin a commercial loan application?
A business should initiate the loan process the moment they believe additional funds are needed to bring their vision to reality. Michele Maher, expert Commercial Lending Officer for First Mid in Mt. Vernon, advises, “An individual should begin the process as soon as possible so we can understand the request and gather any supporting information needed. The process can be lengthy, so a healthy head start will help us follow the necessary channels.”

What types of commercial loans are available?
Short-term and long-term lending options are available! You can secure funds for operating needs, capital purchases, commercial real estate, revolving lines of credit, Small Business Administration (SBA) loans, municipal financing, and much more!

What information does a customer need to provide when applying for a commercial loan?
You’ll typically need a good amount of information to begin a commercial lending application. Some items are listed below:

  • 2 years of tax returns (both personal & business)
  • Personal finance statement
  • Accounts receivable listing
  • Purchase contract
  • Collateral being offered
  • Loan amount requested
  • Rent roll & projections
  • Any other documents to support the request

 

Quick Tip: Even though we’d love to see you in our office, First Mid can come to your business or take applications over the phone!

 

How fast will a customer know if their application is approved?
This answer depends on several factors. Michele explains, “A customer will typically know the status of their application within a few days once we receive all the necessary information to fully process it.”

Remember, starting the loan application as early as possible will only benefit both parties during this intensive process.

What types of businesses typically seek a First Mid commercial loan?
According to Michele, “I personally have worked with all client types from new businesses to companies that have been established for years. Business size doesn’t matter and every client is different, so we learn to customize the process to their needs.”

Can customers pay off their First Mid commercial loan without any penalties?
“Many of our loans have no repayment penalties. Again, this factor depends on the individual business loan and the negotiation between you and your loan provider when applying,” says Michele.

How does First Mid make the loan process easier for its customers?
First Mid keeps the loan approval process in-house, which means you get the best personalized care and access to your loan advisor when questions or concerns arise. Plus, you have the added ability to closely monitor your loan application status and receive updates virtually as they occur.

Michele adds, “I try my best to explain the process thoroughly, follow up as changes occur, and give my customers detailed updates as the loan process moves long. It’s also important to establish the customer’s best method of communication, so we can stay in constant contact.”

How do I learn more about my commercial lending options?
If you are considering an application for a commercial loan, look to First Mid Bank & Trust for the best options and no hassle. Reach out to First Mid here and we will put you in touch with your local lending officer.

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