Commercial Loan

Getting a Commercial Loan

Certain types of businesses need commercial loans. If you own any of the following businesses and want to remodel or add to the existing property then you need a commercial loan. If you are planning on purchasing any of the following types of businesses then you need a commercial loan. Here is a list of businesses that need commercial loans:
Multi-Family: Garden Apartments, Hi-Rise Apartments, Mid-Rise Apartments, Low/Mod Income, Student Apartments, Senior Apartments
Retail: Strip Center, Outlet Mall
Office: Single, Hi-Rise Tower Health
Care: Nursing Home, Congregate Living This is just a few to give you an idea of what types of businesses can get a commercial loan.

When you decide to talk with a lending company concerning a commercial loan you will need to know certain information. If the commercial property is already built and is in operating order you lending officer will need to see the following in order to decide on you commercial loan.
Your last 3 years financial statements and income tax
Your profit & loss statement and a balance statement
Your own personal financial statements
What you think your cash flow will be for the next 12 months written into statement.
Federal and state tax information
The collateral the business has in existence and your collateral A business plan of what you expect the company to do.

If you are planning on constructing the company from the ground up you will need all the basic information that is usually needed when applying for any type of loan. The information that the lending company will be looking at is your past credit history. This is important with any loan that you apply for. How much money you will be down on your loan (down payment), and they will also be checking your collateral (they will want to see a list of all of your assets).
lending company has more paperwork involved. The lending company will want to see the plans that your architect drew up on a blue print. This will show them the exact square footage of each room, plus other information that is important. They will also need to know what type of materials you will be using in your commercial building construction, like marble for the floors to carper. They will also want to know what commercial contractor you have chosen to use and they will need to have references on his workmanship plus a copy of his license. Another item they will want to see is a complete plan of what it will cost to build your commercial building.

On large commercial projects you may be entitled to apply for a mezzanine commercial loan. A mezzanine is kind of like a second mortgage loan on your home. But, the difference is that the loan is secured by the stock that the company that owns the property has. With a mezzanine commercial loan the lending company can foreclose on the stock in just a few weeks instead of the 18 months it usually takes to foreclose on a mortgage. If your commercial loan is a large project that needs a loan of millions of dollars, this is probably the best way to go. Mezzanine loans have become very popular today for the growing commercial industry.

You can talk with many different lending companies about your commercial loan options. Be sure to ask as many questions as you can and be sure that you understand all of your options, including payments and insurance.