Back to Back Issues Page
Volume 6, Issue 7 December, 2016
December 08, 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 4 of 5)

4) Lack of Business Experience or Knowledge of The Funding Process

Two problems that cause the greatest amount of frustration to lenders, investors and business funding consultants are:

1. Clients that have little or no experience in the business for which they are seeking funding.

2. Clients that do not understand the commercial lending process or what are required of them by the funding source.

Clients With No Business Experience or Knowledge of The Business That Want To Fund

Business Money Source receives funding inquiries almost on a daily basis from prospective clients with almost no knowledge or experience of the kind of business they want to start up or fund. These people are referred to as “Dreamers” and “Schemers”.

The “Dreamers” are the ones living in the delusional world of 100% financing and anyone can get a loan for any kind of business. They often just have an idea, with no financial statement (see Part 2 of this series) or no clear business plan (Part 3) and they believe they will magically receive millions of dollars in funding for their business idea. This may sound ridiculous to you, but it occurs on a regular basis. The “Schemers” are the people who are simply trying to get funding that they know they are not qualified to get legitimately. This can range from innocent ignorance on the part of the borrower to willful attempts to defraud a lender.

One of the red flags that a Business Funding Consultant, like Business Money Source, will look for is whether or not the loan applicant has education and/or experience in the business or industry for which the business funding is being requested.

For example, if you are applying for $2 million to build an economy hotel, you should have a history in the hospitality industry, managing hotels or have experience in commercial building construction. If you are a parking lot attendant at a hotel, the chances of obtaining a loan to build your own hotel are slime to none, unless there are overwhelming factors in your favor, such as an experienced partner who is willing to invest in and manage your project.

Clients Who Do Not Understand The Commercial Lending Process

Lack of understanding of the commercial lending process is another realm occupied by the “Dreamers” and “Schemers”.

Often the “Dreamers” fail to realize or understand that no lender or investor is going to hand over $100,000 to $10 million or more, if the borrower is not willing and able to make a significant investment of his/her own funds. The lender/investor wants to know that you, the borrower, have “skin in the game”. In other words, that you have something to lose if things don’t go as planned.

“Schemers” will often misrepresent themselves and/or the value of their assets, hoping the funding source will not perform due diligence (Part 1) and discover the discrepancies in their loan application. These attempts at defrauding lenders/investors are almost always discovered when the lender performs due diligence on the loan application. Knowingly submitting false information on a loan application in an attempt to acquire a loan not only wastes everyone’s time but can also be crime in many jurisdictions.

Another problem with the lack of understanding of the lending process, leads to many borrowers becoming overly cautious. They do not understand the necessary costs associated with processing a commercial loan.

There is really no way to short circuit the commercial lending and large project funding process. You must follow the rules and requirements set forth by the funding source.

Two Myths About Commercial loans And Large Project Funding

Myth No. 1: 100% Financing

100% financing is very rare and usually belongs in the land of Unicorns & Tooth Fairies! Think for a moment! Would you lend someone $1, 2, 5, 10 million to fund a project and the borrower has nothing invested to lose if the project goes belly up? No, of course you would not, so why do loan applicants expect to get $1 million for a project that costs $1 million – 100% financing?

There are some lending programs that advertise 100% financing but nearly all require the borrower pay the cost of due diligence and the cost of the lending process. Some lenders or private investors will require the purchase of a Surety Bond or that the borrower provides proof of having a cash reserve of 3 –5% of the loan amount. There is “no free lunch” in commercial lending!

Myth No. 2: Loan Processing Costs Can Be Added To The Loan Amount

The short answer to this is “NO”. Loan Applicants familiar with personal and residential mortgages often ask or expect that processing fees be added to the back end of the loan. When you are applying for funding for a multi-million project, there are many details that have to be addressed. Due diligence, licensing, inspections, feasibility studies, legal fees, specialists services such as architecture, engineering, audits & accounting and many other tasks have to be performed by third parties, who must be paid at the time the work is completed. The lender or investor is not going to risk their capital by paying these costs & fees for your project. Suppose for some reason your project is not funded. The lender will have incurred a lot of out-of-pocket expenses with no way of recovering their losses.

When you apply for a large project or commercial loan, you must present yourself as a professional businessperson with the knowledge and ability to work with a reputable lender or private investor to fund your project.

Please see parts 1, 2, & 3 in back issues of BM$ Success Newsletter for most information of why large projects are not funded. Go to and ask for the BMS_Hard_Facts_Commercial Loans Report.

“Applying To The Wrong Lender/Investor/Broker” (Part 5) is the final part in this series and will be coming in next issue of BM$ Success: Click on the link below and fill out the "contact us" form to let Business Money Source know your business funding needs.

Also don't forget to request the free report “Six Common Mistakes People Make When Applying For Business Loans”.


This Month’s Business Survival Tip

Commercial Truck Financing (U.S.A. Only)

Need to purchase or lease one truck or expand your fleet? Whether you are a business owner or an over-the-road owner/operator, Business Money Source has a trucking financing solution that makes sense to your business.

This program can also provide financing for truck repairs. Major engine and transmission overhauls can cost $20,000 or more. Don’t lose business because of a broken truck.

This truck financing program is available in USA only. Canadian inquiries will be considered on a case-by-case basis. Go to this link for more information and to get started:

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

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

Additional resources to enhance your business and your lifestyle:



Provides inspirational, informational and business oriented tours and workshops, highlighting attributes of the African Diaspora.

Our services offer fresh perspectives and engage clients for learning, cultural enjoyment and to influence a better world. /


Capricorn City - The Hangout For Writers and StoryTellers

Do you have a story to tell? Like to write poetry? Do you enjoy or would like to review music, movies, or television shows?

Interested in getting your works published? is the perfect place to get your work seen by readers around the world.

Please feel free to contact James Bullock at if you have a desire to let the world discover you.


Financial Wellness - Personal Financial Education and Wealth Building

Debt-Free Lifestyle, Income Surplus

Mortgage Payoff 7 - 15 yrs, Education Planning For Your Kids

Retirement With 3-4 Income Streams - Other Financial Concerns & Goals

Contact Judith McCaskill Robinson (831) 444-5478 or, Community Volunteer since October 20, 2014


Just Rydin' Magazine -I am just rydin'

A comprehensive online magazine dedicated to the pleasures and safety in motorcycle riding

Sponsor of community service events to educate children in the safe operation of bicycles & mopeds.

Contact Marie Cammock Payne for advertising and subscription opportunities:


Professional Web Design

At HRichNetworks, LLC We offer professional, custom, high quality web design services. All of our websites are custom designed to meet every client's needs and requirements.

From complex dynamic web applications to simple professional business websites, we do it all at an affordable price.

Call us today for a no-obligation quote - 804.447.4312, P. O. Box 74083 N Chesterfield, VA 23236 804.447.4312


Vickie's Art - Step Into My World And Enjoy The Scenery

Specializing in water color paintings on a variety of canvases, including murals and stage play backdrops

Visit our galleries to view samples at

Add a piece of Vickie's timeless art to your collection.


Send your ad info to:

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

Advertise Your Business in BM$ Success

You as a subscriber are invited to give your business free online exposure. Free advertising just for the asking! Just send a brief description of your business and the products or service you offer. State whether you are local to a specific region or a national or international company. We will place your info in the next issue of BM$ Success. Don’t forget your contact info or to spell check your ad!

Send your ad info to: Any Questions:

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

Be sure to check business money news page daily on for updates. Also friend us on Facebook and follow us on Twitter!

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.

Back to Back Issues Page