No matter what industry you’re in, expanding or renovating your business often means purchasing a commercial property. Keep reading to learn more about commercial real estate loans, from a basic definition to the different types of loans you have at your disposal.
What Is a Commercial Real Estate Loan?
If what you want is a commercial loan to purchase a property, then you need a commercial real estate loan.
Simply put, a commercial real estate loan is a commercial loan you take out to acquire a new or existing commercial property such as:
- Office space
- Strip malls
- Retail stores or shopping centers
- Industrial facilities
These loans are important because commercial properties can be very expensive and purchasing them upfront is out of the question for most businesses.
A commercial real estate loan helps you get the capital you need to grow your business without having to pay all the money at once.
What You Need To Know
There are some basic factors you need to compare as you shop around for a commercial real estate loan. Here’s what you need to keep in mind.
- Repayment terms. Just like mortgages, commercial real estate loans are repaid over a set amount of time. The repayment terms for commercial real estate loans range from five to 20 years.
- Interest rates. This is basically the amount a lender charges you for lending you money. Your interest rate will be determined by things like your type of business and the creditworthiness of your company.
- Fees. You know what they say: always read the fine print. Make sure to ask what fees you are expected to pay as well as their amount.
Now, not all commercial real estate loans are the same. The type of loan you choose will depend upon the size of your business and the amount of money you need.
- SBA 7(a) loans. One of the best alternatives when you purchase a business and the operation includes real estate. Learn more.
- SBA 504 loans. You can use this type of loan to purchase the acquisition or construction of commercial real estate. Learn more.
- Bridge loans. A form of temporary financing you can use while you secure a long-term solution. Learn more.
- Conventional loans. If you have a solid credit history and are looking for a loan with flexible terms, this is probably the option that works for you. Learn more.
Need a Commercial Loan for a Property? Gellyfish Commercial Can Help!
If you need a commercial real estate loan in California, or anywhere in the United States, Gellyfish Commercial is here to help you.
Contact us today by email (email@example.com), telephone (877-800-4493), or social media (Facebook, Twitter, LinkedIn), to schedule a free consultation or to learn more about our financing solutions.