Like in Business, first impressions are very important when applying for Commercial Property Finance.
Many borrowers come to visit me for the first time only after they have unsuccessfully applied for finance on their own. This instantly creates negative sentiment around their proposal as no lenders like to take on business that their competitors have already declined.
Commercial Finance is a complex and highly specialised with many factors influencing a loan approval. For instance, many times we find that clients are trying to negotiate a loan with a Bank that simply doesn’t have the appetite for their proposition despite the strength of their proposal. For instance, during the first few years of the GFC, many borrowers were making applications with the Four Major Banks for Commercial Property Finance and Residential Construction Finance. This was during a time when the Majors were reducing their exposure to these areas and only rationing capital in that space. Many borrowers were not always advised of this and spent months literally queuing up, waiting for a response from their Lenders which in most cases was NO.
There is not always a “one size fits all” solution to your needs. Dealing with Banks, Non Banks, Property Trusts and Private Lenders on a daily basis, most Brokers will have a strong understanding of the level of appetite in the market for your proposition.
It’s vital that you get your application right the first time and that it’s presented in the best possible way. In many cases this will result in having two or more funders, bidding for your business, ensuring that you attain the most efficient and competitive form of Commercial Finance available in the market at that point in time.
Should you wish to discuss any aspect of this post or any matter in general, please contact me or email me on the details below.
Sincerely,
Con Katsiouras – Director
Ph: 0388445555 e: con@foliofinance.com.au