How to Get a Property Improvement Loan
If your business’ location needs an upgrade, you may be leaving money on the table if you don’t invest in improving it. That said, remodels, repairs and updates can become very expensive very quickly. Fortunately, there are many opportunities through lending establishments to apply for funds that can help. A property improvement load can be a great investment in your business. Here are some tips to help you secure one.
Craft and Explain Your “Borrower’s Story”
Preparation is a key element to successfully applying for a property improvement loan. While it may sound obvious, it’s surprising how many entrepreneurs neglect the important step of telling their “borrower’s story” when meeting with prospective lenders. If you can craft a narrative about the creation of your business, how you’ve taken it through various levels of success, and how the funds you’re applying for will help your company grow, your chance for success is greatly improved.
Paint a Picture of The Property
You may have a great plan for your property improvement loan, but lenders need to evaluate it from an engineering standpoint to make sure it’s physically possible. This is an area where it’s hard to have too much information. Bring photographs, blueprints, and artist renderings of what the renovated or expanded area will look like. It’s always critical to arrange these into a clean, sharp, professional presentation. If you make a digital file, have printed versions available for the lenders to reference. Include information about neighboring properties, power and water, and anything that might be relevant. Become an expert and be prepared to answer anything that could work against you.
Give Estimated Costs for the Planned Improvements
Lenders love specifics. If you can come in with vendor’s quotes, it will let them know that the amount you’re asking for in your property improvement loan is based on real information, not just a hope or a guess. You don’t want to ask for more than you need, as that will make it less likely to receive approval. But you certainly don’t want to accidentally ask for less either!
Detail How You Will Use the Funding
Finally, take those quotes, and break them down on a 1-2-page itemized summary, with as much detail and accuracy as you can provide. Just being able to provide this shows the thought and dedication behind your request and will get you started on the right foot to receive a property improvement loan.