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Commercial Loan

Commercial Loans

Commercial loans are designed to meet the financial needs of businesses for various purposes, including establishing a new retail location, making a multi-family housing investment, buying new machinery, or expanding a company by purchasing more commercial real estate. These loans are typically larger,  ranging from $50,000 to millions. The approval process for commercial loans can be more difficult due to the higher stakes involved.

Commercial loans are commonly classified based on repayment options and financial objectives. Short-term loans are typically repaid within 18 months, while term loans can last up to 30 years. Equipment loans are specifically designed for purchasing equipment or other assets for a business, while loans for commercial real estate are intended for buying a commercial property.

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Commercial Loan Programs

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FAQ

Generally, you must provide detailed financial and business information such as your business plan, financial statements, tax returns, credit score, and collateral documentation.

The interest rates for commercial loans are typically higher than those for residential loans, and they can vary depending on factors such as creditworthiness, the type of loan, and the lender.

Commercial loans are available for various industries, including retail, manufacturing, hospitality, healthcare, and more.

Non-recourse loans are loans where the borrower is not personally liable for repayment in the event of default. The lender can only go after the collateral securing the loan. Carve-outs are provisions in the loan agreement that allow the lender to pursue the borrower’s assets in the event of a default.

When a commercial loan matures, the borrower must repay the remaining balance in full. However, some loans may offer options for refinancing or extending the repayment period.

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