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.
Commercial business loans are to finance the purchase of fixed assets. This includes heavy equipment, building and real property. A business may need to purchase a new building to accommodate growth, or new machinery to speed up production. Real estate investors want to purchase a house to renovate and then flip. These are some of the reasons entrepreneurs and businesses need the funding.
The details may vary from lender to lender, but loans starting at three hundred thousand dollars are available for the loan to value ratio, LTV, of 65 to 75 percent of the appraised value. A minimum credit score of 650 is required. This is only a fair credit rating and within the reach of most businesses and entrepreneurs.
SBA 504 loans are an excellent resource for small businesses and entrepreneurs. One condition is that the real property must be 51 percent owner occupied at the very least. If this criterion is met, the lender may approve a loan for the first mortgage for up to 50 percent of the property value. The Small Business Association will loan applicants who qualify up to 40 percent of the appraised value for a second mortgage. These borrowers must be able to put up the remaining 10 percent, and they need a credit score of at least 620, although 660 and higher is preferred.
The lenders are often private sources or smaller banks. The loan broker that borrowers work with often serves as the facilitator by putting the lender and the borrower together. Since this is a business, the process is designed to be quick. There will be one week for the lenders to commit and thereafter no more than sixty days to close.
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.
Commercial business loans are to finance the purchase of fixed assets. This includes heavy equipment, building and real property. A business may need to purchase a new building to accommodate growth, or new machinery to speed up production. Real estate investors want to purchase a house to renovate and then flip. These are some of the reasons entrepreneurs and businesses need the funding.
The details may vary from lender to lender, but loans starting at three hundred thousand dollars are available for the loan to value ratio, LTV, of 65 to 75 percent of the appraised value. A minimum credit score of 650 is required. This is only a fair credit rating and within the reach of most businesses and entrepreneurs.
SBA 504 loans are an excellent resource for small businesses and entrepreneurs. One condition is that the real property must be 51 percent owner occupied at the very least. If this criterion is met, the lender may approve a loan for the first mortgage for up to 50 percent of the property value. The Small Business Association will loan applicants who qualify up to 40 percent of the appraised value for a second mortgage. These borrowers must be able to put up the remaining 10 percent, and they need a credit score of at least 620, although 660 and higher is preferred.
The lenders are often private sources or smaller banks. The loan broker that borrowers work with often serves as the facilitator by putting the lender and the borrower together. Since this is a business, the process is designed to be quick. There will be one week for the lenders to commit and thereafter no more than sixty days to close.
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.
About the Author:
Tom G. Honeycutt is a full-time real estate entrepreneur in Atlanta, GA. Tom helps readers by providing practical and useful knowledge to better understand lending choices. If you are looking for Commercial Real Estate Lending he suggests you click here for more information.
No comments:
Post a Comment