From its beginning, the United States has always been a land filled with entrepreneurs. The number of small businesses across the land are proof that the entrepreneurial spirit is still going strong. Business owners and hopeful business owners should know of the many funding options available to grow their business or to start up a new one. Discovering the commercial lending options in Atlanta is the first step to accessing these resources.
Commercial business loans are to finance the purchase of fixed assets. This includes heavy equipment, building and real property. A business may need to purchase a new building to accommodate growth, or new machinery to speed up production. Real estate investors want to purchase a house to renovate and then flip. These are some of the reasons entrepreneurs and businesses need the funding.
Depending on the lender, businesses can get 65 to 75 percent of the LTV, loan to value ratio, of the appraised value of the property. This loan usually requires a minimum credit score of 650. In most cases businesses can meet or exceed this benchmark.
The range for SBA 504 loans starts at 250 thousand dollars up to 5 million dollars. This type of loan is restricted to 51 percent owner occupied real estate. Commercial lenders will loan 50 percent of the appraised value for a first mortgage. Applicants who qualify can get 40 percent of the property value on a second mortgage from the SBA, Small Business Association. Borrowers must have the remaining 10 percent themselves, and their credit score cannot be less than 620, although 660 and up is preferred.
Lenders may be small banks or private investors. Borrowers work with a loan broker who facilitates the process by making the connection between borrower and lender. The decision process by the lender is quick, usually within one week. Once approved the time to close is typically within 60 days.
These are just a few of the available options. Lenders such as Excel Commercial Capital Corporation of Atlanta, Georgia, and other lending companies have websites that can answer many of your questions. If one broker denies your loan application, apply to another. Some are more risk sensitive than others, and if your financial history is less than impeccable you may need to shop around for the financing you need.
Take time to educate yourself about the loan process before applying for a loan. Getting your own Tri Merge report for your credit is a good place to start. Make sure all the information is accurate, then contact creditors to see if there is anything that can be done to raise your score. The process takes time and work, but with tenacity borrowers can often get the necessary funding approved.
Commercial business loans are to finance the purchase of fixed assets. This includes heavy equipment, building and real property. A business may need to purchase a new building to accommodate growth, or new machinery to speed up production. Real estate investors want to purchase a house to renovate and then flip. These are some of the reasons entrepreneurs and businesses need the funding.
Depending on the lender, businesses can get 65 to 75 percent of the LTV, loan to value ratio, of the appraised value of the property. This loan usually requires a minimum credit score of 650. In most cases businesses can meet or exceed this benchmark.
The range for SBA 504 loans starts at 250 thousand dollars up to 5 million dollars. This type of loan is restricted to 51 percent owner occupied real estate. Commercial lenders will loan 50 percent of the appraised value for a first mortgage. Applicants who qualify can get 40 percent of the property value on a second mortgage from the SBA, Small Business Association. Borrowers must have the remaining 10 percent themselves, and their credit score cannot be less than 620, although 660 and up is preferred.
Lenders may be small banks or private investors. Borrowers work with a loan broker who facilitates the process by making the connection between borrower and lender. The decision process by the lender is quick, usually within one week. Once approved the time to close is typically within 60 days.
These are just a few of the available options. Lenders such as Excel Commercial Capital Corporation of Atlanta, Georgia, and other lending companies have websites that can answer many of your questions. If one broker denies your loan application, apply to another. Some are more risk sensitive than others, and if your financial history is less than impeccable you may need to shop around for the financing you need.
Take time to educate yourself about the loan process before applying for a loan. Getting your own Tri Merge report for your credit is a good place to start. Make sure all the information is accurate, then contact creditors to see if there is anything that can be done to raise your score. The process takes time and work, but with tenacity borrowers can often get the necessary funding approved.
About the Author:
Tom G. Honeycutt is a full-time real estate entrepreneur in Atlanta, GA. Tom helps readers by providing practical and useful knowledge to better understand lending choices. If you are looking for Best Atlanta Commercial Lending Solutions he suggests you visit his friend's for more information.
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