Knowing the different types of commercial loans available to you and which ones are right for you is a hard task to take on by yourself. Whether you’re looking for commercial real estate loans or construction loans, it is critical that you have all of the information available to figure out which one is right for you and your business plans. Rival Commercial Finance and Consulting located in Tampa is here to break down the different loans available and teach you the ways to figure out which one you need. Keep reading to learn more about different loan options!
What Are the Different Commercial Loans?
It doesn’t matter if you’re in need of commercial real estate loans or another type of loan for your business plans; everyone needs help figuring out the right loan for them and their future. Having a team of experts on your side to help you navigate the confusing waters of business finances is essential not only for your sanity but also to ensure you’re making the best decision possible!
A conventional commercial loan is very similar to what you’d get if you were buying a single-family home. However, the terms for a commercial loan are a lot shorter than a traditional home mortgage. Lenders for a conventional commercial loan usually require a twenty-five percent down payment for a fixed-rate mortgage ranging anywhere from five to thirty years, which is different from a typical home loan that will last between twenty to thirty years.
A commercial bridge loan is used for short-term capital while a business owner improves, refinances, or sells a property. This loan may be used to initially fund a transaction until an owner can refinance into a traditional type of loan. These types of loans typically come with a higher interest rate and usually need to be paid off within six to twelve months.
Commercial hard money loans are an alternative type of capital that is provided by a company or individual. You are able to secure this type of loan by using real estate as collateral. These loans are often referred to as a “last resort” by a lot of professionals in the field.
When it comes to SBA loans, there are two different types that can be used for the purchase of the commercial real estate. One is the SBA 7 (a) loan, and the other is the SBA 504 loan. These loans are both backed by the Small Business Administration. These types of loans can be used by existing businesses looking to expand or refinance or new businesses just starting out. The most popular type of SBA loan is the SBA 7 (a) loan, which helps companies purchase or refinance an owner-occupied commercial property up to $5 million!
Contact Us For Commercial Real Estate Loans
Rival Commercial Finance and Consulting in Tampa is a company that can help you plan for your business and get funding through our expert consultative advice. If you’re looking into different types of commercial loans, but aren’t sure where to start or which ones are right for you call or visit us today to find out how we can help!