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Commercial Loan Basics
Commercial and Residential Loans may be similar in respect to fulfilling
a need to acquire funding for real estate, needed improvements or
expansion, cash out from equity and refinancing, but the similarities
stop there. Educate yourself to the distinct differences and learn
why commercial borrowers must meet a much higher set of criteria for
credit worthiness, collateral, documentation and validation to complete
the application process.
Commercial Property Types
There are almost as many categories of commercial property as there
are actual properties themselves. Understand the different types and
what it takes to fund each one.
Commercial Loan
Financing Options
Fixed or Adjustable rates, or possibly a hybrid of the two; maybe
a lease to buy plan? Does your business need financing to get a new
project up and running? Possibly you need to stock-up on inventory
of raw supplies for manufacturing. Commercial loans are not just about
the purchasing of real estate. Discover how a commercial loan can
help a business buy or lease needed equipment or facilities and also
make investments in the future of the company.
Commercial
Underwriting Guidelines
Businesses are very complex entities and thus require complex underwriting
to protect the business and the owners from loss and litigation. Each
state has very specific percentages, rates and laws associated with
insurance, learn what to look for and where.
Commercial
Loan Checklist
Do not start to make application for a commercial loan without first
making a list of what you will need. Just like a pilot who systematically
checks his equipment to avoid irrevocable consequences, loan applicants
must do the same. The list is long, and at times daunting, and you
do not want to go for your application ill-prepared. Use this list
to help check, prepare, and check again. |
