Selasa, 19 Januari 2016

Learn About Commercial Lending Options In Atlanta

By Tom G. Honeycutt


The backbone of America is small business. The entrepreneurial spirit is the reason the United States was formed. Often what challenges entrepreneurs is a lack of funds to start up a business. There are many options for funding your dreams. Reviewing the commercial lending options in Atlanta will get you thinking about how you can make things happen.

Many commercial loans are for fixed assets, such as real estate, buildings and equipment. If you are looking for a lender to finance the purchase of a commercial building, heavy equipment for manufacturing or a house to buy and flip there are several types of loans available.

Depending on the lender, businesses can get 65 to 75 percent of the LTV, loan to value ratio, of the appraised value of the property. This loan usually requires a minimum credit score of 650. In most cases businesses can meet or exceed this benchmark.

SBA 504 are loans for two hundred fifty thousand to five million dollars for real estate that is at least fifty one percent owner occupied. The commercial lender will agree to loan fifty percent of the property value for the first mortgage, qualifying applicants can get forty percent of the value for the second mortgage from the Small Business Association, SBA. The borrower must be able to put up the remaining ten percent. Borrowers must have a minimum credit score of 620 but it is better if your score is at least 660.

Lenders may be small banks or private investors. Borrowers work with a loan broker who facilitates the process by making the connection between borrower and lender. The decision process by the lender is quick, usually within one week. Once approved the time to close is typically within 60 days.

These are examples of some loan options, but there are many others. Excel Commercial Capital Corporation of Atlanta, Georgia, is just one of the several lenders that create these loan packages. Their websites can answer many questions for borrowers. If your application is denied, do not give up. Shop around for another lender, as some are less risk sensitive than others.

Educate yourself before you apply for the loan. Get your own Tri Merge credit report to ensure that all the information is accurate. Work with past creditors to improve your credit report as much as possible. Be forthcoming about anything negative. It is best to be honest, since lenders will found out anyway. With hard work and tenacity you can probably get the needed financing.




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