How to Get a Long-Term Commercial Loan

Businesses need long-term commercial loans to purchase new equipment, expansion and to buy business property. In order to secure a long-term commercial loan your business needs certain credentials, such as collateral in case you do not repay the loan. Prepare your loan credentials prior to asking for the loan for better terms on your commercial loan.

Difficulty: Moderate

Instructions

1. Evaluate why you need a long-term commercial loan. Write down the specific need such as new equipment and exactly what type of equipment. Be very specific including the brand name and price.

2. Ask your financial consultant or accountant to make up a loan proposal for you to take to the lending institution. Prepare this document prior to asking for the loan

3. Apply for your long-term commercial loan. Pick your current bank first since they are already familiar with your business. Fill out the application and present your loan proposal.

4. Negotiate with your banker if the terms do not meet your satisfaction. Offer more collateral or a larger down payment. If all else fails ask your banker, "What will it take to get this loan done?" and then follow his suggestions.

5. Obtain references from your bank if they are not able to make this loan to you. If you credit is poor your bank may recommend financial institutions that specialize in long term commercial loans to businesses with less than perfect credit.

6. Accept the loan offer you receive. Even if the terms are not exactly what you want, if your business needs the equipment or expansion, accept the loan. Pay on the loan for 6 months and then return to the financial institution to renegotiate the terms.

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