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Because of the recession, many loan companies are not advertising and will only lend money in particular situations if the borrower meets strict conditions. During troubling economic times such as the one we are experiencing, it is not at all rare to see this defensive strategy at work. The chances of getting a first-time commercial mortgage is slim, especially during a time of economic challenges. Those who don’t have enough money will have a hard time fulfilling their dreams of starting their own business, even if they have a great business plan already drawn up. Fortunately, lenders have not disappeared from the scene entirely. Be forewarned, however, that they will insist on an ironclad plan for success. Even in this troubled economy, you can still overcome a lot of hurdles to get a decent commercial mortgage.

Remember that commercial lenders will want you to produce a convincing business plan. They will also look to the documentation provided by your past business and at times even personal tax returns. This practice has been customary within commercial for many years. Historically, these documents were not likely closely examined, but merely checked to ensure their completeness. In today’s poor economic environment, your application will be mulled over with a fine tooth comb in search of anomalies or errors. You can sufficiently prove past cash flow with a documented history of earnings, as demonstrated via previous tax returns.

The very first essential step is to have copies of your past tax returns. Today an unproven or even slightly risky business venture is unlikely to get approval from commercial mortgage officers. Expect them to question every aspect of the viability of your business plan. If you are skilled in communicating your aspirations, and convincing in your likelihood of achieving them, you stand a good chance of persuading the mortgage officer to view your venture in a positive light. In these difficult days, you want to develop a solid relationship with your loan officer. The services of a qualified financial advisor with exceptional interpersonal skills can work miracles for you.

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