Most people are familiar with applying for loans, particularly home loans. The world of commercial lending, however, is like visiting another planet. The two subjects are simply different and handled differently.

Obtaining commercial financing requires you to learn an entirely new world of finance. Information learned in the world of personal finance is not going to cut it. Here are some tips and advice to help you out.

Don't believe the hype when it comes to commercial lenders. Simply put, they want your business and will do practically anything for it. If they promise a 30 day period to work your loan, realize it is going to take much longer. Apply early!

Be prepared for the cost of the loan. The loan to value of most commercial loans is rarely more than 75 percent in the best of cases. This means you are required to come up with a down payment of 25 percent and the money for closing.

A bank will not accept an appraisal from the borrower. That doesn't mean it isn't wise to get one on your own in certain situations. Getting an accurate appraisal can really help you grasp the value of a property as well as good and poor aspects.

When applying for a new loan, the sales contract for the property must be complete. You cannot get "pre-approved" when it comes to most lenders. This means you need to be as prepared as possible before submitting your docs.

Lend once, lend twice. This is a general rule you should definitely consider following. Specifically, a lender that finances you once will do it again so long as you have stayed up on your repayment obligations.

If this is your first financial investment, the small business administration should be a place you visit. This is one of those rare government agencies that actually helps small businesses. Definitely take a trip and talk to the reps there.

Unlike residential lending, there is a lot of wiggle room in commercial lending. This means that a rejection with one lender does not mean another will come to the same conclusion. As a result, shop your loan to many lenders.

It is tempting to brush over the problems in your finances. Don't. Even if you get it by the lender, it can come back to haunt you. If you later have financial problems, you can be the lender will be all over you trying to recover its financial output.

Get your business plan in order. Commercial loans usually involve a lot of money and lenders want to see borrowers that have both a plan and are organized. Give them what they want and they will give you what you want.

Just do it. Many potential commercial loans are not written because the borrower in question never applies for them! What is the worst that can happen? The lender can say no. Oh, the agony. Prepare correctly and have at it.

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