The backbone of America is small business. The entrepreneurial spirit is the reason the United States was formed. Often what challenges entrepreneurs is a lack of funds to start up a business. There are many options for funding your dreams. Reviewing the commercial lending options in Atlanta will get you thinking about how you can make things happen.
These loans are typically for real estate, equipment, buildings and any type of fixed asset. Borrowers may be need a lender to help them purchase a second building to expand their business. The loan may be needed to purchase equipment that will modernize a manufacturing process. Funding is available for these fixed assets.
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.
The lenders are often private sources or smaller banks. The loan broker that borrowers work with often serves as the facilitator by putting the lender and the borrower together. Since this is a business, the process is designed to be quick. There will be one week for the lenders to commit and thereafter no more than sixty days to close.
There are many resources for borrowers. These are only a few. Excel Commercial Capital Corporation of Atlanta, Georgia, is just one of several lending firms who work to create lending packages for business purposes. Their websites are very informative and will answer many of your questions. Do not be discouraged if your loan is not approved immediately. Shop around for other lenders who are less sensitive to risk.
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.
These loans are typically for real estate, equipment, buildings and any type of fixed asset. Borrowers may be need a lender to help them purchase a second building to expand their business. The loan may be needed to purchase equipment that will modernize a manufacturing process. Funding is available for these fixed assets.
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.
The lenders are often private sources or smaller banks. The loan broker that borrowers work with often serves as the facilitator by putting the lender and the borrower together. Since this is a business, the process is designed to be quick. There will be one week for the lenders to commit and thereafter no more than sixty days to close.
There are many resources for borrowers. These are only a few. Excel Commercial Capital Corporation of Atlanta, Georgia, is just one of several lending firms who work to create lending packages for business purposes. Their websites are very informative and will answer many of your questions. Do not be discouraged if your loan is not approved immediately. Shop around for other lenders who are less sensitive to risk.
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 Commercial Lending Group he suggests you visit his friend's for more information.
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