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.
Many commercial loans are for fixed assets, such as real estate, buildings and equipment. If you are looking for a lender to finance the purchase of a commercial building, heavy equipment for manufacturing or a house to buy and flip there are several types of loans available.
Business and entrepreneurs can apply for the LTV, loan to value ratio, of at least 300,000 dollars to fund sixty five to seventy five percent of appraised value. Details and terms change depending on the lender. Applicants need a credit score of at least 650. For most borrowers, this fair credit rating score is not an issue.
SBA 504 are loans for two hundred fifty thousand to five million dollars for real estate that is at least fifty one percent owner occupied. The commercial lender will agree to loan fifty percent of the property value for the first mortgage, qualifying applicants can get forty percent of the value for the second mortgage from the Small Business Association, SBA. The borrower must be able to put up the remaining ten percent. Borrowers must have a minimum credit score of 620 but it is better if your score is at least 660.
The lending sources are frequently smaller banks. Borrowers work with a loan broker that functions as a facilitator by connecting borrowers with lenders. The loan broker will shop around for the best rate for the borrower. The lender will make the decision to commit within seven days. Once the lender has committed, the loan will close within sixty days.
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.
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 Services he suggests you visit his friend’s for more information.