As a business owner or investor, making a partnership with the right commercial lender is essential to your success. The right funds loaned for the right terms can allow you to invest in the property you need, or complete a necessary building renovation, or even purchase the inventory and equipment you need to grow your business.
But how do you select the right kind of commercial lender for your financing needs?
Do Your Research
There are a variety of commercial and investment loans available, including lines of credit, term loans, equipment loans, SBA loans, and commercial real estate loans. Which one will serve your business interests best? Do your research.
Then you need to find a commercial lender that can provide this kind of loan, with a loan officer who understands your business, and can clearly explain the benefits and drawbacks of your investment, answering any questions you may have.
Then you should do your due diligence on possible commercial lending partners. Do they have website testimonials and ratings from other businesses? Have they been operating for a while?
The objective is to identify a a commercial lender with stable capital and sterling reputation.
Look at the Terms
Of course, securing a commercial or investment loan is only the first step. Then you must pay it back, so it is important to review and understand the terms. Does it, for example, require a “balloon” payment – typically a large payment owed at the end of short-term balloon loan? Does the loan have a variable or fixed interest rate?
Or does the commercial lending institution charge a prepayment penalty? Learn all you can about the terms and costs, because they can have a long-lasting impact on your business and finances.
The Right Communication and Service
You need a commercial lending partner who is committed and understands your needs, who keeps the lines of communication open and does everything to explain the ins and outs and pros and cons of your investment and commercial loan opportunities.
If you are a commercial real estate investor, a small business owner or anyone looking for a commercial real estate loan, be sure to get in contact with one of our commercial mortgage experts. They can provide you with solutions that help you accomplish your real estate investment goals.