Commercial Loans

Lenders assess your eligibility for a commercial loan through a comprehensive evaluation process that typically includes the following key factors:

1. Business Financials: Lenders will review your business's financial statements, including profit and loss statements, balance sheets, and cash flow statements, to assess its financial health and ability to repay the loan.

2. Credit History: Your personal and business credit scores will be examined. A strong credit history can improve your chances of approval and may result in more favorable loan terms.

3. Business Plan: A detailed business plan that outlines your goals, strategies, and financial projections can demonstrate to lenders that you have a clear vision and plan for your business.

4. Collateral: Lenders may require collateral to secure the loan. This could be the property or assets you intend to purchase or other business assets.

5. Loan Purpose: The purpose of the loan and how it aligns with your business strategy will also be considered. Lenders want to ensure that the loan will contribute positively to your business's growth.

6. Experience and Management: Lenders may evaluate the experience and background of the business owners and management team, as this can impact the business's likelihood of success.

At Rosh Partners, we can help you understand the specific criteria that lenders use to assess eligibility and guide you through the application process, ensuring you present a strong case for your commercial loan.

There are several types of commercial loan options available, each designed to cater to different business financing needs and documentation levels. Here are some common types:

1. Full Doc Loans: These loans require comprehensive documentation to assess your business's financial health. This typically includes detailed financial statements, tax returns, and a robust business plan. Full doc loans often offer lower interest rates and more favorable terms since they provide lenders with a complete picture of your business’s finances.

2. Low Doc Loans: Low documentation loans are designed for borrowers who may not have all the extensive financial documentation required for a full doc loan. While they still require some financial information, the requirements are less stringent, making it easier for small businesses or self-employed individuals to access financing. However, these loans may come with slightly higher interest rates due to the increased risk for lenders.

3. Lease Doc Loans: Lease doc loans are specifically tailored for businesses that may have lease agreements instead of traditional income documentation. These loans allow borrowers to use their lease income as proof of repayment capability, which can be beneficial for businesses that rely on leased properties.

4. No Doc Loans: As the name suggests, no documentation loans require minimal to no financial documentation. These loans are often more challenging to secure and typically come with higher interest rates due to the increased risk for lenders. They may be suitable for established businesses with strong credit histories but are generally less common.

At Rosh Partners, we can help you navigate these commercial loan options and determine which one best suits your business's specific needs and financial situation. Our team will work with you to find the right financing solution to support your business goals.

Getting your finance pre-approved before you make any decisions is always a very good idea. While not strictly required, getting a home loan pre-approval can be highly beneficial, especially in a competitive housing market. Here’s why:

1. Know Your Budget

• A pre-approval provides you with a clear understanding of how much you can borrow based on your financial situation. This helps you focus your property search within your price range, saving time and preventing disappointment.

2. Strengthen Your Position as a Buyer

• Pre-approval shows sellers and real estate agents that you're a serious buyer with financing already conditionally secured. This can make your offer more attractive and give you an edge over buyers who haven’t been pre-approved.

3. Avoid Surprises

• During the pre-approval process, your lender will assess your financials (income, savings, credit history) to give you an accurate borrowing estimate. This way, you can address any issues or discrepancies early on, reducing the chance of surprises later.

4. Faster Loan Approval

• Having pre-approval can speed up the loan approval process once you’ve found the right property. Since much of the groundwork is already done, the final approval can be quicker and smoother, which is especially helpful when dealing with tight settlement timelines.

5. No Obligation

• A pre-approval is typically valid for 3-6 months, and while it gives you a better idea of your borrowing power, you're not locked into a particular lender or loan until you proceed with a formal application. This gives you flexibility if your circumstances change.

When Might You Not Need Pre-Approval?

• In certain situations, such as if you're making an unconditional cash offer or if you’re a returning buyer with extensive equity, pre-approval may not be essential. However, even in these cases, knowing your borrowing capacity is still helpful.

Final Thoughts: While it’s not mandatory, getting pre-approval can provide peace of mind, clarity, and a competitive edge when buying a home. It’s a smart step in the home-buying process, especially if you’re serious about securing your next property. A mortgage broker can guide you through the pre-approval process and help you find the best loan options based on your needs.