Sometimes it is difficult for self-employed individuals to get approval for a loan. If you don’t have pay stubs from an employer or proof of an annual salary, lenders may be hesitant to approve you. That is why commercial loans are so appealing to self-employed people. Learn how to receive approval for a commercial loan as a self-employed person by continuing on with this blog post.
Lenders are likely to approve individuals with an impressive credit score, even if they don’t have a strong proof of income. Build your credit score by paying off loans and maintaining a low balance on your credit cards. Paying off any debts you may have is an excellent way to increase your chances of commercial loan approval.
If you’re self-employed and looking to use a loan as a way to fund your business, wait two years to apply for any loans. Many small businesses fail in the first two years because they take out ambitious loans and cannot pay them back. Beat the two-year time span and then seek loan funding for your company.
Remember to save up and keep a cash reserve on hand. If your business starts to struggle, it’s nice to have a cash reserve you can turn to in order to pay off the loan. You don’t want to be stuck unable to make payments, so be sure to have a savings account ready to go. Saving up money is also a nice way to put down a large down payment, which will prove to lenders you have the proper financing and are responsible with your money.
To receive a commercial loan, reach out to us at Shop Commercial Mortgage. We can help you fund your business, even if you’re self-employed. Reach out to Shop Commercial Mortgage at 813-368-9919 for additional information about our services today!