Often securing a loan is part of renting Kansas City office space, especially in the start-up phase of a business or in the case of expansion or other projects. Here are a few common mistakes that businesses make while applying for a loan to be aware of as you try to procure your own loan:
- Not doing enough research. Make sure that you put in the time to review commercial loan terms from multiple different banks and commercial lenders.
- Not finding the best lawyer. A lot of times it can be tempting to choose a family member or a friend who happens to be an attorney to help you with this process, but you will want to hire a commercial real estate attorney—someone who has experience in negotiating the types of real estate loans you need.
- Failing to have a clear plan for the money. It is important to lenders that you have a definite plan in place for how you intend to use the money, as well as a timeframe in which you plan to complete any projects.
- Failing to present a business plan. It is to your advantage when you are applying for a loan to be able to show lenders a well-structured business plan that lays out all of your financial and operating data and shows the general trajectory of your business.
- Not investing your own money. It is a good idea to have your own available cash on hand when applying for a commercial real estate loan, because commercial lenders want to see that you are willing and able to cover a percentage of the cost with your own investment.
Being aware of these steps could give you a better chance at procuring a loan!
If you are interested in office rental space in Kansas City, give us a call at 913-685-4100!