Apply For Commercial Loans| Riley Finance & Leasing LtdRiley Finance & Leasing Ltd
Apply For Commercial Loans| Riley Finance & Leasing Ltd (RFLL)
Apply for Commercial Loans| Riley Finance & Leasing Ltd (RFLL): Banks, credit unions and other lending institutions have separate departments that handle commercial loans and residential loans. Individuals who desire to begin the application process for commercial business loans must be prepared to provide specific documents relating to the business, including two or three years of tax returns, financial statements, accounts receivable and accounts payable documents and collateral offered to secure the loan. Business owners should be prepared to give a brief presentation regarding the goals and objectives of the business as well as an outline of the business plan in general. The purpose of the business loan helps loan officers determine which types of loans will be offered.
Purpose of Business Loans
Commercial business loans are used as working capital, to buy real estate in connection with the business or to purchase inventory and equipment. Revolving lines of credit are often used to provide cash for the business over time, since the borrower can withdraw funds from the credit balance of the loan. Term loans are typically used to establish a business, purchase real estate and purchase inventory and equipment.
Letters of Credit
Documentary and stand-by letters of credit are arrangements often used by import/export business, contractors and travel agencies to serve as assurance of payment. Documentary letters of credit are usually for less than six months. A stand-by letter of credit may be renewed annually. A letter of credit serves as a guarantee that the vendor you’re working with will get paid. You apply to your bank or credit union for a letter of credit using cash, real estate or other business assets as collateral. Once you’re approved, your lender will draw up an official letter of credit with a specific dollar amount guaranteed to a specific vendor. If you are unable to pay that vendor, your lender is obligated to do so, and will use your collateral to cover the amount.