If you’re working with small business owners looking to pay off tax debt, it can be difficult to find them the financing they need. Traditional lenders don’t want to get involved with borrowers who have tax issues, and your borrower might not want to go the hard money route. There are small commercial mortgage lenders who want to do business with these types of clients. Here’s what you need to submit to get started with one of these lenders:
- Loan summary: Before a small commercial mortgage lender can make a decision about financing, it needs to know how your borrower plans to use the funds. If your borrower wants to pay off small business tax debt, be sure to specify what kinds of taxes need to be paid, how much your borrower owes and why they haven’t been able to pay the taxes. Make sure that you ask the right questions and that you understand your borrower’s situation before sending the lender a loan summary.
- Application: Having your borrower fill out a basic loan application like a 1003 form gives the commercial lender information they need about your property. Other acceptable documents include a personal financial statement or a commercial loan application.
- Credit report: Your borrower’s credit is an important tool for a small commercial mortgage lender when deciding whether or not to finance a loan request. Be sure the lender has a recent report with up-to-date information when evaluating the loan scenario, and that you and your borrower can discuss any financial issues.
- Relevant financial information: Any small commercial mortgage lender is going to want to make sure that a borrower can make their loan payments. Provide the lender with relevant financial information, such as a profit and loss statement or an income and expense report.
It’s best to provide a small commercial mortgage lender with the above information early on so that the lending process can begin quickly and smoothly. Be sure to provide the most up-to-date information possible, and make sure that you and your borrower are able to discuss the information and your borrower’s small business tax debt with the lender.
If your borrower is looking to pay off tax debt from their small business, call APEX Mortgage Corp. at 800-262-2739.