There may be other conditions that will affect the success of your borrowers' business that the lender will take into account before approving your loan. These external factors can and will be assessed by your lender: local competition, industry trends, general economic conditions, legal and regulatory restrictions and liability issues. If your borrowers have a well-prepared business plan, they have already addressed the majority of these concerns.

Now that you know the commercial lending process and understand what lenders are looking for, below are some guidelines for you to recommend to your borrowers before and after submitting the loan application.

• Know your credit score.
• Understand all the terms of the loan.
• Lock in the interest rate (if interest rates are increasing).
• Have a business plan.
• Do not make major changes to business structure or anything that will affect your credit prior to applying for a commercial loan.
• Have up-to-date financial statements.
• Make sure you have ample collateral and equity.

With education and preparation, you'll be on your way to making your dreams become a reality and closing a higher percentage of loans.

Tony Vo is vice president of capital relations for The VEC Financial Group. VEC Financial is a privately owned commercial finance company dedicated to providing commercial mortgage and business financing to property-owners and entrepreneurs across the country. VEC provides these services by connecting the right broker with the right borrower, who ultimately finances with the right lender. This personalized system of matchmaking helps provide the best possible commercial financing experience. Web site: www.vecfinancial.com.

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