If you are a small business owner interested in expanding your company through building renovations or by relocating to a new space, but perhaps need additional financing in order to make this happen, you may want to consider a commercial loan. Commercial loans offer business owners the resources to take your business to the next level. The loan specialists at Foundation Mortgage can help you upgrade your business with a commercial loan in the areas of Knoxville, Maryville, Lenoir City, Oak Ridge and Gatlinburg, Tennessee. Contact our office today for a consultation.
What Are Commercial Loans?
Commercial loans are designed to help a business cover the major expenses and operational costs that a company may not typically be able to afford on its own. They are intended solely for a business and are not intended for personal or individual use. There are many different types of commercial loans available, including term loans, short term loans, equipment loans, commercial real estate loans, lines of credit, SBA loans, etc. Businesses can use commercial loans for a variety of purposes, including acquiring business assets, assisting with operational costs, and funding supplies, payroll, additional real estate, etc.
Advantages of a Commercial Loan
There are many advantages to obtaining a commercial loan for your business. First of all, a commercial loan allows your business the opportunity to get necessary funding fairly quickly and you can borrow a large amount of money at once. Lenders often offer flexible terms, and the repayment schedule is usually divided over a longer period of time, so it makes payments more manageable for the borrower. Commercial loans also often have lower interest rates, and borrowers still maintain sole ownership of the business throughout the duration of the loan.
Commercial Loan Requirements
The eligibility requirements for commercial loans do vary, and lenders will consider many different factors during the application process. Some typical qualifications are as follows:
- Commercial loans usually require collateral, such as equipment or property in case the the borrower is unable to pay the loan
- A decent credit score is required
- You will need to provide documentation of consistent income, solid business history, and your current assets
- You will be required to pay interest to the lender, however, the loan interest is tax deductible
- You will need to provide a plan regarding how your company will utilize proceeds from the loan
Get Help Applying for a Commercial Loan
Commercial loans can be very advantageous for a business. If you are looking into obtaining financing to help you expand or renovate your business in Knoxville, Maryville, Lenoir City, Oak Ridge and Gatlinburg, Tennessee, contact Foundation Mortgage. We can work closely with you to find the best loan solution for your situation.