Owners of warehouses sometimes require outside financing to keep their businesses prosperous. Most of the preparations for loan approval involve basic financial strategies that you should make habitual. Here are some tips on how to obtain warehouse financing.
Maintain a Good Personal Credit Score
Before granting approval for warehouse financing, lenders will peruse the details of your personal credit information. To keep your credit score high, always keep up with your credit card payments and payments for other bills. Have a copy of your personal credit report ready with your loan application.
Keep Accurate Records of Finances
The financial records for your business should be accurate, clear, and comprehensive. They should include annual income statements and at least three years of tax returns. Remember that lenders want to see enough financial history to convince them that you can repay the loan.
Maintain Your Building
When lenders see the property that they are financing, they want assurance that it is being well maintained. To convince them of this, clean up the trash, and repair any broken windows, cracks in concrete, and unsightly damage to the facade.
Record All Improvements to the Property
Lenders are interested in how much you’ve invested in the property before approaching them for a warehouse loan. It is important to be precise in delineating these improvements. Keep a comprehensive list of the improvements you’ve made and the costs, and retain all records such as receipts, invoices, and canceled checks.
Provide Details of Why You Need the Loan
Lenders want to know specifically why you require warehouse financing. Identify how you plan to spend the money, and be as precise as possible. Include in this assessment items such as a mortgage, business debt, inventory, and equipment. Share an estimation of how future profits will improve as a result of the loan.
For more advice on how to obtain warehouse financing, get in touch with Safe Harbor Commercial Capital.