3 Mistakes to Avoid When Applying for a 504 Loan

For over 10 years, Community Business Finance's mission is to help businesses realize their dreams. Since 2005, we have approved more than 200 loans for a total of over $150,000,000, giving our loan experts the experience and knowledge to assist you with the 504 Loan Program and increase your chances of a successful loan process.

We have identified three mistakes that borrowers make during the application process and offer a few tips to help you avoid them.

3 Mistakes That Could Keep You From Getting a 504 Loan

Community Business Finance's mission is to help businesses realize their dreams. Since 2005, we have approved more than 200 loans for a total of over $150,000,000. We have the experience and knowledge to assist you with the 504 Loan Program and increase your chances of a successful loan process.

Our experts have identified 3 mistakes that borrowers make during the application process and offer a few tips to help you avoid them.

Why Conditions Matter to the 504 Loan Program

The first 4 Cs of Credit – character, capacity, capital, and collateral – all deal with a company's financial history or current state of affairs. One would think a clean past and current financial strength would make lenders eager to produce a 504 loan, or any business loan. However, lenders are also concerned with the future, and how the future economic outlook may affect your business.

Why Collateral Matters to the 504 Loan Program

Today's topic is collateral, one of the 5 Cs of Credit that lenders use to determine their level of risk when offering a 504 loan, or any business loan. You may be thinking, "I've checked my credit reports and made sure my character hasn't been damaged. My business has good cash flow (capacity), and I've got plenty of skin in the game (capital). What more could a lender want?" Lenders do want more; they want collateral.

Why Capacity Matters to the 504 Loan Program

There are many aspects of business that create a company's success, such as a solid business plan and available lines of credit. However, when determining the financial health of a business, cash is king! We've all heard the phrase "cash is king" but what does it really mean when you are applying for a 504 loan?