Sound Reasons To Consider
A Commercial Refinance Loan


A commercial refinance loan is a very common transaction these days. Particularly with interest rates being at all time historic lows, now is the perfect time to consider refinancing an existing commercial loan. Interest rates aren't likely to get much lower than they are presently. And in fact, they're likely to start going up.


There are a number of factors to weigh, as well as a number of qualifications a business will have to meet in order to qualify for refinancing.


Here are some reasons for when a business should consider a refinance commercial loan:


To Improve Cash Flow-


Increasing the cash flow is one of the main reasons why businesses often look at refinancing their commercial loans.


Whether its to consolidate several debts into one lump sum loan and payment, or taking advantage of today's lower interest rates, taking one's present commercial loans and refinancing them often results in greater cash flow.


Also, stretching out the length of the loan terms results in lowering monthly loan payments, reducing cash outlays and improving cash flow.


Avoiding Expensive Balloon Payments-


Many commercial loans often come with a certain fixed principle and interest payment for an initial period of time, say 5, 7 to 10 years (with a 30-year amortization schedule), with a final balloon payment due at the end of this period where the entire balance of the loan comes due.


Borrowers often look for a commercial refinance loan to avoid this large balloon payment. Most also look for a long-term fixed interest rate loan, both for lower monthly payments, as well as to avoid huge balloon payments in the future.


Getting Out An Adjustable Rate Loan-


Interest rates on adjustable rate loans swing up and down, based on various factors used to calculate them. With a commercial loan refinance into a fixed rate, you greatly reduce the risk associated with interest rates spiking up drastically and suddenly.


Today's low interest rates are another reason to consider getting out of an unpredictable adjustable rate loan. Be aware though that some lenders might charge a risk premium for a fixed rate loan.


  • Cash Out Commercial Refinance Loan-

  • The reasons for a cash-out refinance might include business expansion, renovations and/or improvements, purchasing new equipment, advertising and marketing, hiring and training new staff, or having additional cash reserves on hand.


Important Points To Qualify For
A Commercial Refinance Loan


Once you've determined your reason(s) for refinancing, you'll also need to be able to qualify. In addition to having to have a good credit and repayment history, with no delinquencies, there are other factors to consider:


  • Current Market Conditions-

  • Since your original loan, market conditions may have changed dramatically since then.

  • Borrowers could be turned down for refinancing if the lender considers the borrower is in a "risky" business (remember the high-tech bubble of the previous decade?) at the time of refinancing.


Also, with the economic turn down, and while interest rates may have fallen, so have many property values. If your property's value has decreased, you won't likely be able to get it refinanced.


Also, if your credit score has any blemishes, you could get turned down for refinancing.


In addition, if the bank or lender's loan portfolio leans or favors to heavily a particular industry, you might get turned down if you're in that particular industry.


Prepayment Penalties-


Many commercial loans come with a prepayment penalty provision. Borrowers pay this fee for the ability to pay off the loan early.


Depending on the cost of this fee, and if current interest rates are significantly lower than the rate you're presently paying, it may be to your advantage to pay the penalty in order to refinance the loan at the lower rate.


Lockout Provisions-


Prepayment penalties come with a lockout provision clause. Basically, it prohibits borrowers to pay off their loans early during a specified period of time.


This means that you're not able to get a commercial refinance loan during this lockout period (typically 6-24 months).


Commercial Loan Refinance
Challenges And Obstacles


While the residential housing market went through a "bubble" and "crash" in our economy recently, the commercial market is predicted to go through a very similar scenario, and is just around the corner. As banks have tightened their credit guidelines, there's also a lending shortage in the commercial arena.


Along with that, many commercial mortgages all over the country with previous 5 to 10-year terms are set to come due with ballon balances between 2012 and 2015. Many commercial property owners and businesses are going to be at risk, both due to credit lending restrictions, as well as depreciating property values.


As banks are making fewer commercial loans available, many business owners and commercial investors are going to have to seek out alternative financing sources.


Business-Funding-Advisors.com Is The Solution For Your Commercial Refinance Loan

Business-Funding-Advisors.com is very experienced in providing commercial refinance loans to our clients.


Because we work with private investors, we have money available to lend when traditional banks do not.


Our lenders make their own underwriting decisions and guidelines, therefore approving many more loans than traditional banks.


Alongwith less strict credit guidelines, as well as bank-competitive interest rates, in addition to closing and funding loans much quicker than banks (can close in 30 days or less), Business Funding Advisors can be your solution to financing your commercial refinance loan.


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 refinance 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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Commercial refinance loans are available in:



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

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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

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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

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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

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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

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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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