Commercial lending can be done in different financial institutions such as banks, credit unions, or other financial institutions such as private lenders specializing in commercial lending. It typically involves the evaluation of the value of the property and uses it as collateral.
There are types of Commercial loans that are available to support business and here are the common types such as:
Term Loans – This type of loan provides a fixed amount of money upfront, that can be repaid over a set period of time. It is commonly used to require non-current assets such as commercial real estate.
Lines of Credit – These loans provide access to a set amount of funds that can be borrowed ahead of time and can be repaid over a period of time. It is usually needed for any unexpected or short-term expense.
Hard Money Loans – It is a short-term loan financed by a private lender, it is used to purchase a commercial property. They usually evaluate the value or property and use it as collateral.
SBA Loans – This type of loan is backed by the government. There are several types of SBA loans such as 7(a) loans, CDC/504 loans, and microloans. SBA provides a loan for commercial programs.
Bridge Loans – A short-term loan to bridge a gap until the borrower secures more permanent financing.
Overall, these types of loans are varied depending on the needs of the borrower, and also the borrower’s creditworthiness, and the value of the property.
A private lender that specializes in commercial real estate businesses will help you which the best type of commercial loan for your needs.
It’s always best to consult with a lender that specializes in commercial real estate lending. With the fast closing rate of as long as 2 weeks and you can get your funds in just 48 hours! Century Capital will definitely be here to provide you with the best services. To know everything about Century Capital Partners LLC Reach Victor Cohen at 201-880-7850 ext 102 or send an email to victor@centurycapitalfinance.com.
