Commercial Real Estate Lenders
By: Trent Lee | Posted: 08th July 2010
Commercial lenders can provide financing programs for all types of income-producing and commercial properties. Financing can be secured for a variety of businesses: shopping centers, office buildings, apartments, health care facilities, etc. It is common for businesses to need commercial loans both at the start-up phase and once the business is up and running for equipment, expansion or special projects. Commercial real estate is a type of property that generates cash flow for a business and is generally very expensive.
What can a commercial real estate lender provide for your business?
' Loans on commercial real estate that are collateralized with real estate.
' Long term permanent fixed rate financing.
' Business acquisition loans to expand or improve your existing business.
' Loans to refinance existing debt
' Both conventional and government guaranteed loans.
Before applying for a real estate commercial loan, you want to make sure you do your research. Review commercial loan terms from different banks and other commercial lenders. Try to find one that has flexible loan repayment terms and provides a generous interest rate for your business.
Selecting a lawyer is another important thing you need to do. Hiring a commercial real estate attorney who is very experienced in negotiating all types of real estate loans will help negotiate the fine points when reviewing a commercial real estate offer.
Put together a good business plan. Lenders want to see that there is plan in place for the use of the money, and the time frame for the completion of the planned project.
Review the balance sheet. Analyzing your cash flow liabilities will help to ensure that while you are paying off the loan you will still have money to run the property properly. Commercial lenders also want to see that you are willing to invest your own money to cover a percentage of the project.
Having a good business credit history is important when applying for any loan. Your business credit rating should include information pertaining to the timeliness of your payments along with your debt-to-income ratio. Late payments or a high debt ratio will cause you to be rejected for the commercial real estate loan.
Commercial real estate lenders will usually not finance more than 75% of the appraised value of the property. Properties also must show sufficient debt-repayment ability. If the property financed is occupied by a sole tenant usually commercial warehouses. The lender may ask to look at the financial strength of the tenant.
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Corporate Credit Concepts specializes in commercial real estate lenders. For more information about commercial real estate lenders and how it might benefit your business, please visit: Commercial Real Estate Lenders
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Tags: good business, loan terms, commercial lenders, office buildings, shopping centers, repayment terms, business loans, commercial loan, business credit, commercial real estate, commercial loans, real estate loans, health care facilities, loan repayment