Commercial Real Estate Loan

A commercial real estate loan is a great option when you need to develop some type of commercial property like a shopping center, health care facility, office building, etc. A lot of small businesses turn to commercial real estate loans when they need to refinance their existing debt. These loans are fairly easy to come by if you have solid business credit.

There are 2 types of commercial real estate loans, short-term loans and long-term loans. When dealing with these loans you need to assess the needs of your business and determine which type of loan you need to have. The short term loans are considered bridge loans, which are used to help the immediate needs of the business and help the company stay in business while you are waiting for approval for the long-term loans. The long term loans offer will last for the duration of time that you own the property. This loan is essential to the health of your business and they provide you with the financing you need to expand your business.

A lot of businesses turn to a commercial real estate loan when they are initially starting their business. This loan offers the immediate financing they need to purchase equipment and necessary products for your small business. Here are some tips to help you acquire a commercial real estate loan:

1. Research multiple lenders. When searching for a loan, always look for lenders that offer the best loan terms. The only way to do this is by asking multiple lenders for quotes.

2. Hire a good attorney. You must have a commercial real estate attorney at your side to help you negotiate the terms of the commercial real estate property. Their job is to make sure have a solid business plan and that you follow all the proper legal procedures to acquire the property.

3. Have a good business plan. Lenders are seeking borrowers that have good business plans. They will ask you for a copy as they want to see your financial projections, marketing strategy, and information pertaining to your industry.

4. Ready cash. When you are acquiring the property you must also have cash ready to put into the property. This means you need to dip into your savings or acquire a home equity line of credit to cover part of the property.

5. Check your balance sheet. Always analyze your cash flow and make sure you have plenty of money to pay for the loan. This is necessary when you acquire the loan if you want the best interest rates.