Commercial Loans
What are Commercial Loans?
Commercial loans are financing options for businesses. Unlike residential mortgages, they use commercial properties as collateral. Typically taken by business entities, these loans help expand workspace and grow businesses. United 1 Mortgage Corporation offers guidance through the complex process, considering factors like interest rates and repayment schedules. Fixed interest rates provide security, while variable rates offer initial savings but risk future increases. Loan repayment usually involves a balloon payment after smaller monthly installments. Longer repayment times often mean higher interest rates. Contact us to explore tailored commercial loan solutions for your business growth.
Commercial Loan Benefits
- Keep Control of Ownership: You keep ownership of your business while using the loan for growth.
- Benefit from Property Appreciation: As your property's value goes up, so does your business's worth.
- Improve Cash Flow: Get the money you need to invest in your business without draining your cash reserves.
- Reduce Business Taxes: Certain expenses related to the loan may be tax-deductible, lowering your overall tax bill.
- Interest Rate: Most commercial loans have fixed interest rates, providing stability. Variable rates may offer lower initial payments but can rise later.
- Loan Repayment Schedule: Unlike home mortgages, commercial loans often require a balloon payment, a large final payment after smaller monthly payments. Longer repayment times usually mean higher interest rates.
What are the Commercial Loan Requirements?
Property Type Specifics:
- Qualification for a commercial mortgage depends on the type of property or building.
- Explore our commercial loan types page for detailed property-specific qualifications.
General Qualification Criteria:
- Business owners must demonstrate an appropriate debt to cash ratio.
- Even with a poor credit rating, eligibility is possible if the primary owner has good personal credit and sufficient liquid assets.
Financial Stability Requirements:
- Demonstrate a continued and stable pattern of profitability.
- Provide plans for future growth, including business plans, earning projections, and long-term goals.
For a personalized assessment of commercial mortgage qualifications, reach
out to our commercial loan specialists today at 703-889-7669 or via email.
FAQ
A commercial loan is a loan intended for business purposes, such as purchasing commercial real estate or funding business operations. Benefits include funding for business growth, flexible terms, and potential tax advantages.
- Purchase of a building or space in which to do business
- Extending current work space
- Investing in commercial or residential properties
- Developing properties for commercial use
Every borrower’s situation is a little different, so be sure to email or call one of our commercial loan specialists today. We look forward to offering you a personalized commercial mortgage solution tailored to fit your company’s needs.
Types include term loans, SBA loans, lines of credit, and commercial mortgages.
Lenders will consider your business credit score, financial statements, business plan, and collateral.
Interest rates vary widely based on the type of loan, lender, and borrower’s creditworthiness.
