Commercial Business Loan

Commercial business loans are available to people looking to secure financing for a business venture. Commercial business loans can be obtained through channels such as a local bank or credit union, or they can be underwritten by individuals or companies who seek to invest in new businesses. The determining factor of being qualified for a commercial business loan is your credit history and job experience. If you have experience in the industry of the new business, you are more likely to be able to secure a commercial business loan. For example, you would be in a good position to get a low-interest rate on a commercial business loan if you had worked as a server, then a manager of a restaurant and were looking for a commercial business loan to open your own cafe. If you had no restaurant or managerial or entrepreneurial experience at all, it would be harder to secure a commercial business loan because you would be seen as a high risk.

Commercial business loans are given for a variety of reasons. Some commercial business loans are given for equipment or start-up costs, others are given for businesses such as real estate properties. Whichever type of business you are thinking of starting there is a commercial business loan available where you can receive financing. Commercial business loans often require a deposit of up to twenty-five percent of the loan amount. Many first time businesses fail so rates on commercial business loans may be higher than, say, a personal loan. Interest rates and loan terms for a commercial business loan will depend on credit history, down payment and business type. When you go to apply for a commercial business loan, make sure you have done your research on the statistics for similar businesses. What is the success rate? What is the projected profit margin? Who is your competition? These are questions the commercial business loan lender will ask, so be prepared.

In addition to being prepared to answer these questions, take the time to write a business plan that will account for the need for the loan amount of the commercial business loan. A business plan sounds intimidating, but books are available at the library that will help you produce the information you will need before you go to commercial business loan lender to ask for funds. Proverbs 20:18 reminds us to, Every purpose is established by counsel, and a business plan is an example of this. Take time to consult with business owners that you know to get their advice on commercial business loans. Ask where they think the best source of money comes from private investors, banks or governmental sources. Once you have listened to sound advice, take the steps to secure the best commercial business loan you can find.