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Volume 6, Issue 4 June, 2016
June 30, 2016

Here is your latest issue of BM$ Success Newsletter – the companion newsletter to the "Business-Money-Source" website.

5 Reasons Commercial Loans And Large Project Loans Are Not Funded (Part 1 of 5)

Reason No. 1: The Loan Seeker Refuses To Pay Required Due Diligence Costs

I’m sure that you have heard that there is “no free lunch” many times in your business career. Nowhere is that old saying truer than in the business funding industry.

Business Money Source receives loan requests for many project loans ranging from a few hundred thousand dollars to multi-millions. The projects all have one thing in common; in order to be funded, due diligence (a thorough investigation) must be performed to evaluate the validity of the project and qualifications of you, the loan seeker (the Principal). This due diligence costs various amounts of money depending on the size, location and kind of project.

The Funding Source Will Not Pay To Evaluate Your Loan Proposal

The evaluation of your loan application may often require travel to your project site, meetings, appraisals, permits, legal fees, etc. Third parties, such as appraisers, accountants, architects, consultants, engineers, lawyers, surveyors, and government officials are needed to accomplish these tasks. Each one of these professionals has to be paid for their work at the time the work is completed

Many times the Principal often assumes that the funding source will absorb these costs. This is not the case. No lender or investor, public or private, is going to pay to evaluate your project. It is simply not economically feasible. Due diligence costs can range from five hundred to tens of thousands of dollars depending, on your particular project. The funding source will give you an estimate of the due diligence cost and will usually not request that you pay them unless your project is fundable.

The loan process often does not proceed beyond the point where the funding source notifies the loan seeker that he/she will have to bear the costs of performing due diligence on the loan evaluation. The Loan seeker often balks because 1) he/she is suspicious of the fee believing it to not be legitimate or 2) simply does not have the financial ability to pay the due diligence costs. When questioned about why he/she will not pay the due diligence, usually the loan seeker will say that they have lost money before and will not under any circumstances pay anything in advance before the loan is closed.

While caution is understandable, the hard truth is that if you are not willing and able to invest some of your own capital into the financing process, your project will not get funded. Even it there is the possibly of getting 100% financing for your project, it doesn’t mean there still won’t be some initial costs to you for evaluating your loan proposal.

Maybe Time To Re-evaluate Your Business Goals

If you are trying to acquire a $1 million dollar or more large project loan or commercial loan and you are not able or willing to spend the $5,000 - $20,000 or more it will cost to evaluate your project and satisfy the due diligence, you are wasting everyone’s time. That is blunt but true. If this is your situation, it may be time to re-evaluate your business objectives and take on a smaller more realistic project.

Learn More About Due Diligence Fees

Click on the link below and fill out the contact us and ask for the BMS_Hard_Facts_Commercial Loans Report. ConUsPage2 The Next issue of BM$ Success Newsletter will cover Reason No. 2 of the 5 reasons commercial and large project loans are not funded.

This Month’s Business Survival Tip

What’s In An Email Address Name?

Your email address is part of your brand like your business name, logo, website, phone number, etc. Yet, it appears that many business people do not put a lot of thought into their email address. Your email address should reflect you and your business as much as possible. You also want it taken seriously by your recipients. So it should be a no-brainer not to use names like or! (note: these email addresses are used for example - any similarity to actual email addresses is purely coincidental)

5 Tips for choosing an appropriate business email name

1. Your business email should have some recognizable part of your business, company name, product or service. For example, my main business email is:

2. Use all as much of your actual name as possible. Your recipients will become familiar with your name and look forward to receiving your emails.

3. Don’t use cryptic names like It will mean nothing to your email recipients and it looks like SPAM.

4. Don’t make your email name too long. People don’t want to type in long names like Also the longer the address, the more likely you or your recipient will make a typographical error.

5. Avoid any names that would imply any kind of political or religious affiliations or leanings. You do not want to alienate your email recipients that may not think or believe as you do.

Each detail to your business brand helps to solidify recognition and sets you apart from your competitors. Make sure your email address is contributing positively to your business brand.

Let us know what topics you would like to see covered in BM$ Success Newsletter.

Friends of Business Money Source offer you additional resources to enhance your business and your lifestyle. Please see classifieds below:

Please feel free to contact me by the methods listed below, with any questions that you may have about the various loan programs offered by Business Money Source, LLC.

I look forward to assisting you or your clients in acquiring the business financing that you seeking.


Jim Bullock, Managing Member

Business Money Source, LLC

(804) 396-3040

Fax: (804) 781-4971

Twitter: bizmoneysource

Friends of Business Money Source

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Until next month!


Jim Bullock

Business Money Source, LLC P.O. Box 16096 Richmond, VA 23222

(804) 396-3040

“Your One Stop Online Business Information Source”

Twitter: @bizmoneysource

Disclaimer: The content contained in the BM$ Success Newsletter is provided for informational purposes only. It is incumbent upon the user of the information to seek appropriate financial and/or legal counsel before entering into any financial transaction. Business-Money-Source, LLC nor its' principals are in no way liable for your financial transactions. See the “Disclaimer” and "Terms of Use and Privacy Policy" pages on the Business Money Source website for further explanation.

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