What Do the Banks Want?

Last time I talked about FREEING Up Credit, but tonight I want to talk about what will happen if they do free up credit. If the lenders free up credit it will actually cause the lending market to revitalize itself, but is that what the lenders want? Regretfully right now the lenders do not want that. Lenders only want one thing and that is increased deposits. If you can bring deposits to the financial institution that you are requesting a loan from you will most likely get a loan approved.

If you are unable to bring deposits then the bank will most likely not want to lend to you. Even if credit is freer they have no incentive to lend. The only incentive to lend is when rates are higher, fees are higher and the money the banks can lend to other institutions can be turned around quicker.

So what are we to do? We have to show the best deals possible to the lenders to convince them that this is a good deal for both client and lender. If they are content that they will not have any future problems with this loan then they may, and I repeat may be willing to lend to you. But they are going to examine more closely every aspect of the client, the business and the investment.

I believe this closer scrutiny is definitely warranted, and I welcome it. We would love to help you get your next loan please visit us today.