Main

What is a Commercial Loan

 

You may have heard recently about the commercial loan, and are not sure what exactly it is. Due to these tough economic times, many small business owners have had to become very creative to keep their business alive. Cutting back is always the first and usually most helpful way to working your way out of trouble.

There are cutbacks on things like; expenses, labor, advertising, utilities and much more. For example, let’s say your office or store has five people working at all times. What many stores have done is cut back to four people working; this saves a lot of money over the course of the month. Another example is if you are spending hundreds of dollars a month on things like office supplies and vendors. In less than a day of shopping, you could find cheaper suppliers and save hundreds and even thousands of dollars a month. Saving money is the cornerstone of any business whether a million dollar company or a small fish store on the corner being able to survive in this economy.

That is where commercial loan comes in. With the loan, you can lower your monthly property payment by hundreds of dollars. That leads to big savings over the course of a year. These companies work directly with the banks to help settle on a smaller payment plan that saves you tons. With hands-on experience with most of the lenders in your area, they know the ins and outs to getting a deal done fast, and they won’t take no for an answer. The process of dealing with your bank yourself usually is a long and aggravating one that either ends with a rejection or you giving up. That’s why these companies are so useful; they get the job done fast and with little to no effort from you.

Important Facts About Commercial Loans

A commercial loan is a type of loan (not a commercial bridge loan) that includes loans needed to fund a business and also to purchase or finance the construction of property for commercial use. They are not personal loans, so when applying for one, the lender need not go off your credit score to qualify. The lender will look at your business, and it is the business alone that needs to train and prove that it will be reliable in repaying the loan.

I am going to take a few minutes to discuss a few facts about commercial loans that should always be taken into account when looking into a loan. These should all be common knowledge, but most people choose to ignore them or not care about them at all. I will go into each fact in greater detail as I list them.

First, to get approval for a commercial loan, it usually takes about six months to meet the requirements needs to obtain financing. After you apply, you should know within a few weeks whether or not you qualify for the loan. To speed up the process, you might find out in advance what documents will be needed in the application process. This will save you a lot of time and headache.

Second, some people believe that you need business counseling or consulting before you apply for a commercial loan. This is not a pre-requisite for obtaining financing from a lender, but most financial institutions offer this service for free. What you do need to do is bring as much information about your business as possible when you meet the possible lenders so they can take some time and analyze your business and come up with a solution that fits your needs.

Third, you might believe or think that rates are cheaper for small businesses. To tell you the truth, there is no difference between small and large businesses when it comes to securing a commercial loan.

About the author