Are you planning to start a business and need a corporate office or a building to start? Especially if you are starting a new business, buying a commercial property can be hard for you. You will end up short in funds and will need to wait for months before you can save up and buy that corporate building. You can opt for a commercial property loan that will give you the much required funds, and you can purchase the property within few weeks.
Remember that when you apply for a commercial property loan, you should make proper calculations; take into account all the odds because any miscalculation on your part will cost you heavily. You may even end up bankrupt if you do not make all the calculations. Always make sure that the returns or turnover on your business is more than the loan. This will help you to pay off the loan faster and not run into debts.
Different Types Of Commercial Real Estate Loans That You Can Avail
Here are various Commercial Real Estate loan options that you can avail:
SBA commercial real estate loans: these loans are for those whose loan requests have not been accepted by the bank or investor. SBA stands for Small Business Administration, and the rates they offer are meager compared to banks and individual investors. The payoff period is also quite long; you can get 25 years to pay off the debt. Since these loans are very affordable, business owners often opt for SBA commercial real estate loans.
Traditional commercial real estate loans: when you think of taking a loan, the bank is the first thing that comes to your mind. While the bank will be the best option to get a loan from, but it is not quite easy to get a loan from a bank because you need to submit various documents to get the approval. To get the loan request granted, you need to have an excellent personal credit record and also a clean business credit record. Apart from these two, you need to show the returns of your business for quite a few years. The bank needs to see your income or your business's profit before they can decide to give you a commercial estate loan.
Online or private lenders: you can find various online private lenders who offer commercial property loans. You can easily check their eligibility criteria and fill up their online application form. You can submit the required documents and your loan will be approved within few days. But, before you choose any commercial property loan, you need to check their interest rates, processing fees, late fine, pre-closing charges and other hidden charges. If you have any doubt regarding such terms and conditions then you can hire a commercial loan broker. He will assist you to get the best commercial property loan.
Majority of the established business owners do not opt to get investment from these private investors, as they provide money for a concise period and also their interest rates are high. Their interest rates tend to be higher than SBA or even banks. But for small business owners or ones who are just starting their business, getting their loan request approved at the bank may prove to be difficult, which is why they mostly opt for hard money real estate loans.
So now you can search such private commercial loans online and choose the best one for buying your dream property. Establish your business successfully with the best commercial property loan.