Monday, May 30, 2016

Grasping The Atlanta Commercial Property Loan

By Tom G. Honeycutt

If you are interested in buying some real property, extending or developing your own commercial premises, you can realize your dreams fast by securing a specific loan. You should consider getting an Atlanta commercial property loan to assist you realize your dreams. Before you take out this particular financing option, you should know a few facts about it.

Since you are the borrower, you will have the option or freedom to choose the most suitable repayment period that ought to fall between 2-30 years during the application process. You must ensure that you also have adequate security to cover this advance. You will only be able to access a certain percentage of the full value of the security you offer.

You can be able to offer your land, warehouse or even the commercial building you own as your security. The proceeds you usually get from them will be instrumental in settling the monthly repayments. If the security you offer has several uses then it will be up to the lender to decide on the options they will avail to you.

It will be important to make sure that your personal and business record is also at an all time high. Credit history is vital for these companies and they always consider it plus the assets you own to decide if they will be sufficient to cover the total credit amount that will be left when you default. You must also prove the profitability of your business.

You must be prepared to offer some down payments that are often large due to the amount of risk involved. They usually demand that you provide an average of 30 to 40 percent of the total amount then they finance the rest. This is usually the common credit to value ratio used by most commercial lenders.

If you were to consider prepaying your credit before the maturity date is due, you will need to understand their restrictions. They are set in place in order to shield the company from losing out on the anticipated profits they expected to make from you. You must pay some certain amount of money in prepayment penalty.

You will also have to prove that you have an income stream that is strong and solid before the credit is approved. It would also necessitate you to prove to them that your management team is highly profiled and also provide your building plans and blueprints. If you have a solo tenant, then you would need to convince the company that they have adequate financial resources to cover the rent fully.

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