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.
Commercial business loans are to finance the purchase of fixed assets. This includes heavy equipment, building and real property. A business may need to purchase a new building to accommodate growth, or new machinery to speed up production. Real estate investors want to purchase a house to renovate and then flip. These are some of the reasons entrepreneurs and businesses need the funding.
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 loans are an excellent resource for small businesses and entrepreneurs. One condition is that the real property must be 51 percent owner occupied at the very least. If this criterion is met, the lender may approve a loan for the first mortgage for up to 50 percent of the property value. The Small Business Association will loan applicants who qualify up to 40 percent of the appraised value for a second mortgage. These borrowers must be able to put up the remaining 10 percent, and they need a credit score of at least 620, although 660 and higher is preferred.
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.
These are just a few of the available options. Lenders such as Excel Commercial Capital Corporation of Atlanta, Georgia, and other lending companies have websites that can answer many of your questions. If one broker denies your loan application, apply to another. Some are more risk sensitive than others, and if your financial history is less than impeccable you may need to shop around for the financing you need.
Educate yourself before you apply for the loan. Get your own Tri Merge credit report to ensure that all the information is accurate. Work with past creditors to improve your credit report as much as possible. Be forthcoming about anything negative. It is best to be honest, since lenders will found out anyway. With hard work and tenacity you can probably get the needed financing.
Commercial business loans are to finance the purchase of fixed assets. This includes heavy equipment, building and real property. A business may need to purchase a new building to accommodate growth, or new machinery to speed up production. Real estate investors want to purchase a house to renovate and then flip. These are some of the reasons entrepreneurs and businesses need the funding.
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 loans are an excellent resource for small businesses and entrepreneurs. One condition is that the real property must be 51 percent owner occupied at the very least. If this criterion is met, the lender may approve a loan for the first mortgage for up to 50 percent of the property value. The Small Business Association will loan applicants who qualify up to 40 percent of the appraised value for a second mortgage. These borrowers must be able to put up the remaining 10 percent, and they need a credit score of at least 620, although 660 and higher is preferred.
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.
These are just a few of the available options. Lenders such as Excel Commercial Capital Corporation of Atlanta, Georgia, and other lending companies have websites that can answer many of your questions. If one broker denies your loan application, apply to another. Some are more risk sensitive than others, and if your financial history is less than impeccable you may need to shop around for the financing you need.
Educate yourself before you apply for the loan. Get your own Tri Merge credit report to ensure that all the information is accurate. Work with past creditors to improve your credit report as much as possible. Be forthcoming about anything negative. It is best to be honest, since lenders will found out anyway. With hard work and tenacity you can probably get the needed financing.
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 he suggests you visit his friend's for more information.
