With the economic and political uncertainty in 2022, many small business owners are worried about securing the loans they need to get their businesses up and running.
Truerate, a national commercial loan services provider, has compiled this guide to inform you of the requirements to secure loans in the coming year and beyond.
In 2022, you will be faced with higher interest rates, more bureaucratic processes, and fewer loan options. Make sure you know what to expect before approaching your lender of choice.
What Is Commercial Loan TrueRate Services?
TrueRate is a company that offers services for all types of commercial finance needs.
It is a platform for small business loan providers and borrowers. The platform was created by Dan Gorczycki, who combined their expertise to create a new solution for the small business community.
Truerate provides an easy-to-use marketplace where borrowers can find competitive loan rates from trusted lenders, while lenders are able to offer lower rates than they would be able to on their own.
What Are The Services That TrueRate Commercial Loans Provide?
The company offers a wide range of commercial loan truerate services, including but not limited to the following:
- Loan Origination And Structuring: Loan origination is the process of applying for, acquiring, and closing a loan. Loan structuring is the process of applying the appropriate type of loan repayment plan and interest rate to suit your needs.
- Loan Packaging And Underwriting: Loan packaging and underwriting are the processes used by banks and lenders to decide whether or not they will give you a loan. Lenders usually have a set of standards that they use to evaluate potential customers.
- Secured Lending: Secured lending is a type of lending that relies on something of value being deposited as collateral for the loan. Secured lending differs from unsecured lending, which does not require any collateral. A secured loan is when a borrower pledges an asset such as real estate or a car, as security for the repayment of the loan. If the borrower defaults on the loan and the lender take possession of the pledged asset, they can sell it to recover their investment.
- General Business Lending: General business lending is the most common type of loan for small businesses. It can be used for anything from hiring new staff, to buying new equipment or simply expanding your company’s footprint. General business loans are available from a variety of financial institutions, but the largest and most popular providers are banks and credit unions.
- Real Estate Lending: Real estate lending is the process of providing a loan for a person or company who is purchasing an existing property. The loan would be used by the borrower to buy the real estate, renovate it and then sell it for a profit. If the borrower cannot repay their debt, the lender can foreclose on that property and use it for themselves.
- Commercial Equipment Leasing: Commercial equipment leasing is a form of financing that allows you to make use of a company’s assets without actually owning them. When using this type of financing, you can lease a piece of industrial equipment, like a forklift or bulldozer, for a set period of time.
- Asset-Based Lending: Asset-based lending is a form of financing that allows you to borrow money for your business based on the value of your company’s assets. Assets are typically property or equipment that can be sold if the need arises. Asset-based lending is a popular option for small business owners who don’t have collateral they can put up as security.
- Unsecured Commercial Lending: Unsecured commercial lending is the process of borrowing money for a business with no collateral. Commercial banks, credit unions, and other lenders make these loans based on the strength of your credit history and income, among other factors.
- International Financing: International financing is a type of lending that involves transactions with entities and people outside the boundaries of a country. International financing can take many forms, but it typically refers to banks or other financial institutions providing financing outside the borders of their home country.
What is Truerate Commercial Loan Services Eligibility
Just like any other loan, you have to be eligible for a Commercial Loan Truerate Services. To qualify, you need to meet the following criteria:
- You must be at least 21 years old and 65 years maximum age.
- You must have a personal net worth of not less than $5000 or not less than $10,000 for every additional full partner or shareholder. It is also recommended that your net worth is 3 times more than the loan amount you are applying for.
- Your company age must be 5 Years Minimum ( Sole-proprietorship / Private Company / Public Company).
What Are The Possibilities For Commercial Loan Truerate Services In 5-10 years?
Commercial loan Truerate services have been around for decades. In 2022, the industry will be a different beast from what we know today. Below are some of the key predictions for the next 5-10 years:
- The number of traditional banks offering commercial loans will decrease significantly. This is due to increased regulation and decreased profitability. As such, many banks will change their focus and offer more lending options outside of commercial loans, such as mortgages.
- The average age of borrowers who take out commercial loans will increase by at least 10 years.
- Borrowers seeking short-term financing (under 12 months) will drop significantly. As such, those seeking short-term financing can expect higher interest rates or fewer options available.
- Lastly, there will also be a rise in online lending platforms that offer easy access to credit through peer-to-peer networks with reduced costs and lower borrowing limits.
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The most important thing is to always be prepared for the unexpected. If you have a solid business plan, can provide evidence of your ability to repay the loan, and have long-term plans for your company, then you should be able to secure a loan with relative ease. However, if you are unsure about any of these aspects then it may be best to consult with an expert before applying for a loan.