Commercial Loans - A Look At What Lenders Are Offering

By: Ryan Attelle

Equipment leasing is an attractive and affordable alternative for businesses looking to acquire equipment assets with out parting with huge lump sums of cash all at once. Most equipment leasing company’s provide there services for all kinds of equipment assets. Businesses that do decide to lease there equipment always have the same motivation and experience the same results; increased profits and business growth.
Zip Code
A commercial loan is also often referred to as a commercial mortgage. When a business seeks to buy new property, construct one from scratch, or refinance on what they already have they often turn to the banks for a loan. A commercial loan or commercial mortgage is a lot like a residential mortgage. The major difference is that the collateral is some sort of commercial real estate as appose to a residential property. The other major difference is that commercial mortgages are almost always taken on by businesses and not by individuals. The business entity borrowing the money can come in a number of different forms like a partnership, an incorporated business, or limited liability corporation. This makes determining the creditworthiness of the business somewhat more tricky than that of a private residence. Once this has been determined the bank will be approved to lend the business an amount based on there findings.

Smaller businesses usually don't have access to debt and equity markets directly. Expensive upfront costs and regulation usually make this difficult. This is why small businesses usually have to turn to financial institutions for help. And some projects are too big for even large scale businesses to achieve in which case they to must turn to commercial loans for help.

An Info Guide spokesperson explains the advantages of a commercial loan “A major advantage to utilizing a commercial loan is the ability for a business to retain full ownership. That is there is no need to sell any interest in a business to generate the money needed for a commercial property purchase. Those who lend the money only have a right to the interest established in the terms of the loan. Another benefit many enjoy is the fact that those who utilize a commercial loan tend to increase cash flow. A commercial loan provides access to capital using minimal down payments. In addition there is a lot of flexibility in creating a payment plan that suites the specific businesses needs. There are also tax benefits that come with choosing a commercial loan. In fact the interest payments on commercial loans are tax deductible .”

Looking for a commercial mortgage loan means seeking out the most common and the most convenient way to finance the purchase of land or buildings for a business. It is a flexible and affordable solution.
Connect with or Go Back to