How Long Does it Typically Take to Get a Commercial Loan?
There are many different financial institutions that will lend to you if you qualify. The question is where should you make the first inquiry? If you have a financial institution that you have banked within the past, they should be your initial contact. Even if they don’t advertise good commercial interest rates, they may be able to give you special financing just because you are a current customer or have banked with them in the past. Every circumstance is different and it is important to inquire before you decide to apply.
Generally, once you start the application process, you can expect to receive a preliminary answer or preapproval that same day or the next business day. This does not guarantee loan approval or the line of credit they will be offering you. Several things including running financial history reports, more in-depth credit checks and reference checks could take up to 10 to 20 business days. Once everything is in place, the loan then goes to underwriters who will carefully decide on a face to face basis if they feel they should lend to you. In some cases, they may want to meet you or other investors who will be contributing toward your business goals financially. Once it is approved through underwriting, the next step is setting up the loan terms and signing the final loan documents.