Get a Better Business Loan Offer: Top 4 Ways
Learn the Top 4 ways to get a better business loan offer. Use this current program to max out the most favorable terms and conditions. Apply below now.
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How to leverage a higher quality business loan offer.
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- Give your preferred lender a copy of any competing approval.
- Ask for better terms.
- Leverage your broader relationship with the lender.
- Find out why the approval was not better.
1. Show the lender a competing offer.
Give the funding source information on any other approvals you have to negotiate with them.
Example:
You are approved for $25,000 in bank statement funding, but you wanted a higher amount for more months. Your request was turned down.
However, you have existing offers from other funders. Send your preferred lender the actual approvals from another institution if it matches or beats theirs.
Effectiveness: This is often highly effective because it proves that you have multiple options. You have more negotiating power when other lenders know they are not your only choice. Providing documentation increases the pressure on your preferred lender to make concessions.
Rarely Done: Very few people think of showing one lender competing offers. The do not know that you have options from other investors. Stand out above other applicants and show competing offers.
Confidentiality: Is this confidential information? It is the same you gave the other lenders, so there isn’t anything confidential you are giving away. Your current lender already has the information, so it is not confidential.
Data Secure 30 Second Application here.
Call 919-771-4177 for more info.
2. Ask for better terms.
The key conditions of the business loan offer are:
Amount: You can ask for approximately a 10% increase since some funding programs have the discretion to increase the approval by a small amount. Give a relevant reason why your business is asking for the higher amount.
Number of Months: The number of months often has some room for negotiation. Ask for a 3-6 month bump instead of 12.
Rates: Better rates are often hard to negotiate. The funding source will generally give you the rate that matches your risk profile. Negotiating rates may be easier when it is a brokered transaction and there are points or fees in the deal.
Check to see if there are different programs with the same funding source that would be a better fit. Doing so may give your business better terms automatically just by switching to another program.
Also ask the representative about features and benefits. There may be incentives and benefits in the existing approval that are already available just by asking for them.
3. Leverage any broader relationship with lender.
Applicants often have an existing relationship with the lender they apply with.
Deposit Relationship: Make sure the funding source considers any deposit accounts into their decision because automated programs skip this review in their processing.
Borrowing History: Any good previous borrowing history should factor into the approval decision.
4. Find out why the offer was not stronger.
Contact a loan officer and ask them why terms were not more favorable, such a higher loan amount, number of months and rate. Take a close look at those reasons and decide if you can overcome them right away rather than taking more time to fix them.
Example:
Getting your credit score increased will take too long to help you right now. Getting updated financials showing your business in a stronger financial situation is faster and therefore could be used to get an improved business loan offer quickly.
For more ways to get the most out of your approvals, check out 7 ways to boost your borrowing power.
FAQ: Frequently asked Questions on getting a superior business loan approval:
How can I get a better offer?
You may get better terms if you have multiple offers and show them to the lender you want. Tell them they need to beat the other offers in order for your business to close with them.
Will the Lender negotiate?
They are most likely to negotiate if they are given an incentive to do so. Applicants who prove they can close with another funding source and are prepared to do so will often get a negotiated closing.
What if I don’t get better terms from the lender?
Apply with other programs if you are likely to get multiple offers. After getting 2 other approvals, go back to the lender you want to close with and negotiate to get better terms.
Conclusion: Take advantage of easy ways to get better terms.
Most applicants do not push for better terms from lenders and as a result, sometimes miss easy chances to get a stronger deal.
Taking other approvals and asking your favorite lender to beat them always gives you a strong chance of getting concessions. Ask for better terms and use any existing and previous relationships when negotiating. You will probably greatly increase your chances of getting an improvement on the original approval!
Author Biography: Will Sanio, Owner of SCF Funding, dba SmallBusinessLoansDepot.com, has a Bachelor of Science Degree in Business Administration with a concentration in Finance from the University of Tennessee, Knoxville.
Over 20 Years experience including 10 Years with Wells Fargo, formerly Wachovia Bank and First Atlanta Bank. Specializing in Traditional and Alternative lending.
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