Getting Approved For A
Commercial Property Loan


When applying for a commercial property loan, there are several factors that have to be taken into consideration. While similar to getting approved for a residential mortgage, there are some key differences.


As with residential loans, commercial loans also require an appraisal. Lenders want to know the market value of both the physical property, as well as the land in order to reduce their risk. Lenders don't want to loan more money than what the property is actually worth.


The importance of having a good business and personal credit history can't be overstated when it comes to getting approved for a commercial loan. Because of the much greater loan sizes with commercial properties, lenders tend to be much more stringent in their credit guidelines.


Commercial Property Loan Approval Challenges At Banks

Borrowers often look to traditional banks to finance their commercial loans. Yet, today, banks are funding fewer and fewer commercial deals, due to the turn down in the economy.


There are other obstacles as well when trying to get approved for a commercial property loan at a bank.


In addition to tighter credit requirements, banks also require much in the form of documentation.


Usually, they want to see 3-5 years of tax returns, income statements, incorporation documentation, and profit and loss statements.


They can also require you to sign covenant agreements, which are additional demands or conditions on the loan. For example, you may have to maintain a certain positive cash flow, or risk the loan possibly defaulting.


Also, banks almost always ask for a sizable down payment for a commercial property loan, again because of the large possible financial risks to the bank.


Its not unusual for banks to ask for 20-45 percent down.


The bank would then lend the balance of the purchase price. This is called loan to value ratio (LTV).


Banks also weigh and approve loans based on the Debt Service Coverage Ratio (DSCR). This is a ratio of the amount of money a business takes in monthly from rents and other costs, against the monthly mortgage payment.


This determines your affordability for the loan. A comfortable range that banks like to see is between 1.1 and 1.4.


A 1.4 ratio means that for every dollar you pay towards your mortgage, your business generates $1.40.


Another matter to consider is time: banks can take several weeks, or even months, for a loan to get approved, and even longer to fund.


If time is of the essence, like for instance, if you're needing re-financing for a balloon payment that's coming due soon, then you need to be aware of a bank's long time cycle to close a loan.


You then might want to consider other funding alternatives.


Private Lenders As An Attractive Funding Alternative For A Commercial Property Loan

As banks have tightened their credit guidelines, private lenders are more and more seizing and taking advantage of the investment opportunities in financing commercial property loans. Because this is private-sourced funding, there are a number of factors that make them attractive to a borrower.


Private loans usually close and fund much faster than traditional bank loans. As mentioned earlier, while banks can take many weeks to months to approve and fund a loan, private lender-sourced funds can close in less than a month, sometimes even quicker!


Private lenders make their own lending guidelines, and they're not regulated by the FDIC. This also means that they can have less strict credit stipulations than banks.


You're also less likely to have to deal with huge balloon payments coming due, like with banks.


Private lenders can also offer attractive and competitive interest rates, very often comparable to the banks.



Do You Need A Commercial Property Loan? Business-Funding-Advisors.com Is Your Answer


Business-Funding-Advisors.com is very experienced in providing commercial property loans to our clients. Because we work with private lenders, we have money available to lend when traditional banks do not.


Although not complete, here is a partial list of the types of projects that we can finance:


  1. - All Credit Tiers (including subprime)
  2. - Accounts Receivable Financing
  3. - Commercial Loans
  4. - Mezzanine Financing

- Bridge Loans

- Business Lines of Credit

- Construction Loans

- 2nd chance customer financing (500 FICO minimum)

- Working Capital Loans



If you need a commercial property loan for your business, fill out our quick form below. We will contact you within 24 hours.


QUICK COMMERCIAL LOAN APPLICATION


We provide FREE, no obligation evaluations, with no upfront costs, or expensive fees for approval to our private lender programs.


- Minimum loan amounts (for commercial building projects): $100K with no maximum.


(Loans approved for commercial only, not single-family residential projects.)


- No pre-payment penalties on programs offered.


We will respond to your loan application within 24 hours!


Commercial Loan App

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Merchant Cash Advance and

Working Capital Loan Programs

are available in:


Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming


Commercial loans are available in:


Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware,

 Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming


COMMERCIAL LOAN PROGRAM HIGHLIGHTS


Commercial Real Estate Programs

· Lending Area: Nationwide & International


· Loan Size: $100,000-no maximum


· Rates as low as 3.74%

· up to 90% LTV


APPLY HERE

______________________


Commercial Development & Construction Loans

· National & International


· $2MM-$50MM


· Interest Rate: 5-9% Fixed (1% for churches)


· Amortization: up to 25 years


· Zero fees


· Points: Up to 3%, paid at closing


· Term: 5 yrs; also can structure a construction to permanent loan with interest only during draw down periods.


APPLY HERE

___________________


Hard Money Loans Rates and Criteria:

· Loan Size: $100K-$100MM


· Lending Area: National & International


· Collateral: We lend to mainly on commercial real estate, including raw land and development projects


· Interest Rates: 7-14% (rates depend on collateral)


· Amortization: Interest only


· LTV: Up to 80%

· Origination Fee: 1-4%

· Closing time: 1 week to 30 Days


APPLY HERE

___________________


Bridge Loans

· Loan Size: $1MM-$15MM


· LTV: Up to 75%


· Rate: 5-7%


· Term: 1-3 years, Interest Only


· Property Types: Office, Retail, Industrial, Multi-Family, Manufactured Housing, Condominiums, Self Storage, Special Use, Hospitality, Assisted Living/Congregate


APPLY HERE

___________________


Unsecured Business Lines of Credit

· $25,000-$100,000 (start up businesses with no established revenue and business owner with good credit)


· $100,000-$500,000 (established businesses w/ revenue of $1MM or more; no collateral if good credit and financials)


· 0% intro rates on business credit card solutions, to 1-5% over prime for large credit lines.


· No "subprime" unsecured lines


APPLY HERE

___________________


Click Here To Apply for A Business Cash Advance or Working Capital Loan


Bank ACH or Credit Cards


90% Approval Rates (for most industries)


- Minimum 4 months in business and $8,000 avg. monthly revenue


- No Collateral Requirements; Bad credit is OK


- One Week Funding


- Borrow $5K-$500K in as little as 24 hrs


- Short, simple loan process


- Streamlined underwriting

___________________


Restaurant-Retail, 
Small Business Loan Program


  • · Unsecured Loans up to $1,000,000 per location

  • · No Collateral Required

  • · Minimum Annual Sales: $150,000

  • · Minimum: 550 FICO

  • · Must be in business at least 1 month to document sales

  • · Loan amounts below $150,000 require NO tax returns or financial statements


APPLY HERE

_________________


Customer Finance Programs for Businesses

· Can finance your customers down to a 500 FICO;

can finance your turndowns from your current credit provider


· Instant online credit processing and approval


· E-signature capabilities


· Can purchase or collect bad debt portfolios


· Industries include: Medical, Dental, Jewelry Retail, Furniture, Memberships, Private school tuition, Security/Alarms, Vocational Schools, Travel, etc.


APPLY HERE

________________


Click Here to Apply for

A Private Lender Commercial Loan


- Zero upfront costs, zero fees for approval to our programs.


- Minimum loan amounts: $100K for commercial building projects, with no maximums.


- No pre-payment penalties on programs offered.

_________________


Click Here To Apply for A Merchant Cash Advance or Working Capital Loan


- Bank ACH or Credit Cards


- 90% Approval Rates (for most industries)


- Minimum 4 months in business and $8,000 avg. monthly revenue


- No Collateral Requirements; Bad credit is OK


- One Week Funding


- Borrow $5K-$500K in as little as 24 hrs


- Short, simple loan process


- Streamlined underwriting

_________________________


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