When it comes to taking out a commercial loan, businesses require the advice of experts who can guide them in the right direction. As there are many commercial loan providers in the market, each offering different rates of interest and loan terms that can be confusing for businesses, it is necessary to seek assistance from commercial loan experts.
Here, we present you with Commercial Loan TrueRate Services – everything you need to know to help you make informed decisions about your commercial lending needs.
What are Commercial Loan TrueRate Services?
TrueRate Services forms a part of the commercial loan underwriting process, providing the borrower with a comprehensive evaluation of the loan’s true cost, risks associated with the loan, and its compliance with the regulations. The TrueRate Services aim to provide borrowers with realistic market-based lending terms, primarily based on operating results, rather than predetermined ratios.
These services include a full review of the borrower’s financial statements, operating results, tax returns, and other relevant documentation, with assistance from a dedicated underwriting team. With the help of TrueRate services, borrowers can secure a loan with the lowest possible interest rate while minimizing risks.
The TrueRate Process
The TrueRate process involves several steps that the borrower needs to complete to qualify for a commercial loan.
1. Initial Review: The first step involves submitting preliminary documentation that includes information about the borrower’s business, tax returns, and financial statements. TrueRate services use these documents to conduct an initial review and determine whether the borrower is eligible for a loan.
2. Full financial analysis: If the borrower is eligible, TrueRate services then conduct a full financial analysis and review. The process involves a deep dive into the borrower’s financial statements, operating results, and tax returns, along with other relevant documents. The underwriting team then evaluates various factors such as industry type, management experience, collateral, revenue streams, business fraud, and cash flow.
3. Loan Structure: Based on the financial analysis, the underwriting team structures the loan, determining the loan amount, the repayment schedule, and interest rates. TrueRate services help the borrower choose the most appropriate loan structure that meets their business’s specific needs.
4. Presentation: After registering the loan structure, the underwriting team prepares a comprehensive loan package that includes a summary, various financial measures, and the loan’s cost and risks. The borrower can then review the loan proposal and finalize any revisions before the presentation is moved forward to senior management.
5. Closing: If the borrower agrees to the proposed loan, TrueRate services will coordinate the loan closing by preparing legal documents, coordinating with the title company, and ensuring that all closing conditions are met.
Benefits of Commercial Loan TrueRate Services
Commercial Loan TrueRate Services offer numerous benefits to borrowers, including:
1. Proper Evaluation: TrueRate services conduct an analysis of the business the borrower is looking to fund. It helps to ensure that the borrower receives loan terms that are realistic and not overly optimistic.
2. Competitive Rates: They provide borrowers with market-based interest rates that are the lowest possible.
3. Detailed Analysis: Lenders overlook minor details, whereas, with TrueRate services, every essential detail is reviewed by an experienced underwriting team.
4. Regulatory Compliance: TrueRate services guarantee that the loans are compliant with federal and state regulations.
5. Lower Risks: Risk management is a paramount concern for borrowers, TrueRate services help minimize the risk by conducting a thorough analysis.
Commercial Loan TrueRate Services provide borrowers with a comprehensive loan evaluation, lending them not only the best rates but also minimizing risks associated with the loan. TrueRate services become a bridge between lenders and borrowers to make sure that the loan is structured according to business needs while remaining compliant with regulations. By availing themselves of these services, businesses can make informed financial decisions, reduce risks, and secure the funds they need to grow and expand their operations.