Commercial loans are made exclusively to businesses specifically for purchases or investments that will be used solely for business purposes. Commercial real estate loans, then, apply to a business seeking to purchase real estate for business uses. This might be the initial purchase of property, a building, or an extension of property already owned by the business.
Traditional commercial real estate loans are most often fixed rate. However, different from residential loans, commercial loans are often fixed for shorter periods of time. These loans are fully documented, and you could expect to have 2 years of tax documentation required. You may also be called on to present your business plan before the lending institution grants the loan. Your business must have a decent credit score in order to be seriously considered. Alliance Commercial Credit Group can help your business determine if you qualify for this type of loan, and can also assist you through the application process. Our goal is to secure your funding as quickly as possible!
However, not everyone qualifies for more traditional commercial real estate loans. There are alternative lending options that can still secure the funding you need. One of our strategies is to use non-conforming (or stated income) loans. These loans require less documentation, and can be a good option if you have insufficient employment history, business losses in the last two years, or insufficient debt- or cash-flow coverage. In order to make sure you sign with a reputable lender and secure the best interest rate possible, Alliance Commercial Credit Group can walk through the process with you.
Although it can be challenging to secure a commercial real estate loan in the current economy, it is far from impossible. And even if you won’t qualify for traditional loan types, there are other, alternative financing options available to you. For direction and insight as to the best course of action for your company, contact Alliance Commercial Credit Group today.