Adeclined loan is not always unapprovable. In many cases, the borrower or broker simply hasn’t presented sufficient risk mitigation measures. Addressing the key elements of a loan request upfront improves clarity, strengthens the proposal and reduces avoidable lender concerns.
Before submitting any loan request, borrowers and brokers should answer the “four H’s of credit” — questions that establish the foundation of a complete package.
“How much money is needed?” Determine the exact amount required, based on careful calculations of project needs.
“How long will the funds be needed?” Define the duration the loan will cover so the structure meets all parties’ expectations.
“How will the funds be used?” State clearly whether proceeds ...
