Tuesday, January 19, 2016

Find Your Commercial Lending Options In Atlanta

By Tom G. Honeycutt

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.

Depending on the lender, businesses can get 65 to 75 percent of the LTV, loan to value ratio, of the appraised value of the property. This loan usually requires a minimum credit score of 650. In most cases businesses can meet or exceed this benchmark.

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.

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