Commercial Loans: For Real Estate and Beyond
Have a great business idea or a major financial need? A commercial loan can be the solution for you.
What is a Commercial Loan
A commercial loan is a loan that a financial institution gives to a business to be used for purposes such as purchasing real estate, buying equipment or inventory, or paying for business expansion. A commercial loan can also be used to acquire capital for operational purposes or to refinance existing loans.
A commercial loan typically has a wider range of funding options and a lower interest rate compared to traditional loans, quick loan approval turnaround, and a fixed repayment period.
Commercial Loan Types
Commercial loan types are:
- A long-term fixed interest commercial mortgage where the term is typically 20 years.
- An interest-only payment loan also referred to as a balloon loan, where payments start out small and then require a large payment at a future date.
- A refinance loan.
- A hard money loan. These typically come from private investors who are willing to make a loan based on the value of a commercial property.
- A bridge loan. This type of loan is used to use for building and construction before taking out a more comprehensive refinance loan.
- A construction loan, used to cover the material and labor costs required to build offices, retail locations, and multi-family dwellings.
- A blanket loan. This type of loan is used to fold multiple real estate properties into one loan for financial flexibility and convenience.
Other types of commercial financing include traditional term loans, business lines of credit, government business loans, equipment financing, and invoice financing.
How to Get a Commercial Loan
First, determine what the loan will be used for and how much money you will need. Second, choose the type of loan that you will need. Third, choose the right commercial lender. Fourth, prepare your application. Fifth, close on the loan.
Seek Expert Financing Assistance
Contact Charis Commercial Capital, based in Hyattsville, MD. We offer tailored commercial financing options including helping those who are not served by traditional banking institutions.