Whatever you require a commercial real estate loan for, you need to ensure you understand what loans are available for your small business. Choosing the correct loan is a crucial part of the planning process and allows you to turn your real estate plan into a reality. This type of loan is a great funding option for businesses who don’t have the money to outright purchase or renovate a property. If you are confused by the different loans out there, read on to understand a little more about the options available and where you can get expert help with commercial real estate loans.
A bridge loan is one loan that is available to businesses who need money quickly. If your business needs a loan within a short timeframe, it could be that a bridge loan is right for you. These are often used when a business is looking to purchase a property that is classed as distressed. This means the property is usually sold for much less than its original value, often because it’s being sold by a lender rather than the owner or the property is under foreclosure.
Small Business Administration (SBA) Loans
There are many loans authorized by the SBA, who help small businesses get off the ground and grow into something big. Understanding which of these loans to apply for depends on your budget and circumstance. The two main loans that small businesses apply for are the SBA 7(a) and the SBA 504. The SBA 7(a) is usually a small payment loan that is often used for purchasing machinery or equipment and can be repaid within seven to 25 years. The SBA 504 can also be used for equipment, but another use of this loan is to improve real estate, including the maintenance or upgrade of a property. Term length for the SBA 504 is only 20 years.
Getting a Commercial Real Estate Loan
Once you have looked at your budget, wqhat you need the loan for, and how long you want to pay it back, you can begin choosing between these commercial real estate loans. Taking out any loan is a big decision for your business and so you need to be sure you’re making the right choice and that you can pay back what you borrow. Commercial real estate lending can be a difficult choice and so working with a specialist company will give you the guidance you need. One such company is AVANA Capital who are there to help small businesses. They specialize in assisting those who want to take out commercial real estate loans with every step of the process and may even be able to offer you a unique loan that is right for your real estate project. Getting in touch is completely free and there is plenty of information available on their website.
Whatever loan you decide to apply for, don’t make the choice alone. Discussing loan choices with an expert who understands commercial real estate loans will aid you in finding the best loan for your budget and business. Ensure you understand your budget and have a solid business plan before applying for a loan.