| When your little idea, your dream starts taking a real | | | | schedules, maturity, and collateral used to secure other |
| shape - you know it is time you garnered your | | | | loans. You can be required to provide more |
| finances to make it grow. At times your effort fall | | | | documents during the loan process. |
| short and there you are filing for loans. Commercial | | | | In case you are purchasing real estate, you might be |
| loans can help business interests with uninterrupted | | | | required to submit preliminary environmental reports, |
| capital supply. | | | | area maps, title reports, property appraisals, and lease |
| Commercial loans can be used to buy business | | | | summaries. |
| premises or commercial building for both new or | | | | Decisions for commercial loans take usually 1-5 days. |
| establish businesses. They can be used to buy any | | | | During this time, you might be required to give further |
| business asset or to finance the expansion of any | | | | information. Commercial loans broker can help you |
| established business. | | | | submit your loan application to several lenders for |
| Different commercial loans lender have different way | | | | approval. Your job is to select the most attractive |
| of processing commercial loans. You can start with | | | | offer and returning the final letter of intent. After all the |
| pre-qualifying for commercial loans. This determines | | | | conditions are satisfied, the commercial loans are |
| how much as a borrower you can afford as | | | | approved and the lender will give a final loan |
| commercial loans and which commercial loans | | | | commitment. At the closing, the commercial loan will be |
| programme will suit the best. | | | | transferred with a cashier's check, draft, or electronic |
| Commercial loans are the biggest way of financing | | | | wire transfer. |
| business projects. While providing you with commercial | | | | Commercial loans are either secured or unsecured - |
| loans, the loan lender will look at general information as | | | | with or without collateral. Secured commercial loans |
| your income and existing debts. Your application will be | | | | are more commonly available as commercial |
| reviewed by a loan officer. | | | | mortgages. Commercial mortgage are provided at |
| Commercial loans lender will take keen interest in | | | | better terms, interest rates and repayment options. |
| - Credit history | | | | Commercial loans are available with fixed and variable |
| - Reason for loan | | | | rate options. Fixed rate commercial loans will mean |
| - Collateral | | | | that your interest rate and monthly payments will be |
| - Ability to repay | | | | fixed at the beginning of the loan and will remain so |
| - Your investment in the business | | | | throughout. |
| Documents to gather while applying for commercial | | | | Businessmen apply for fixed rate commercial loans for |
| loans are - | | | | it helps in effective financial planning because they |
| Loan request - the amount of loan requested, how the | | | | know how much they are giving out every month. |
| funds will be used, loan type and amount of working | | | | With variable rate the interest rates changes in |
| capital on hand. Commercial loans lender will feel more | | | | accordance to the changes in the market. The benefit |
| secure knowing that you have invested your own | | | | with variable rate is that they start with lower interest |
| money in the commercial plan. | | | | rate than fixed rate. But interest rate can increase |
| Business plan - If the commercial loans are used for | | | | during the term and therefore you will have to pay |
| starting a new business, the business plan is crucial. It | | | | more. On the contrary fixed rate commercial loans will |
| should include cash flow projections for first 24 | | | | leave no space for change in case the interest rates |
| months. Information should be concise and clear. Its | | | | drop. |
| feasibility will be fundamental in getting commercial | | | | Investigate before you make a commercial loan claim. |
| loans approved. | | | | Be prepared to answer some questions. Commercial |
| Personal financial statements - In case commercial | | | | loans are cost effective way of funding business |
| loan is used for expansion of business, it will be | | | | needs when you need it. Commercial loans can |
| required for you to give business profile. Personal | | | | strengthen your competitive position increase your |
| financial statements would be required for anyone | | | | working capital and maximum profitability. Investigate |
| who owns 20% or more of business. Complete | | | | your opportunities with commercial loans and see how |
| information about current debts balances, payment | | | | your business becomes a commercial success. |