Commercial and Industrial Loans
When you have a new project for your organization but you’re unable to finance it due to the high-costs of the materials or elements you require, the usual thing to do would be to consider commercial and industrial loans for it.
Unlike usual credits, you would access as an individual, commercial and industrial loans are not only different because businesses or corporations are the only ones that can access them. But also, because they work with other terms and conditions, starting with the fact they are usually short-term loans instead of long-term ones.
In order to understand what are you signing for whenever you consider one of these loans, you must know the basics about a traditional one. Most credits work with terms that focus on 20 to 30 years of amortization, about 5% of interest rates, and around 10 to 30 years to repay the loan. Also, collateral is usually requested from the lender in order to secure the borrower will return the money in any possible way.
Now, what’s different with commercial and industrial ones? Usually, the time and percentage of everything. First, the loan is considered a short-term one because the repayment time only lasts up to 1 or 2 years regardless of the lender you choose. However, the interest rates are lower but the collateral stays the same.
With that said, these loans are used for providing working capital or finance capital expenditures in a business or organization. This involves investing in new projects, paying out different bills, or acquiring new equipment and machinery for the businesses. This type in particular has nothing to do with either acquiring a new property or, on the other hand, a land.
If you want to aim for a credit that allows you to access a new property or premise for your company, this isn’t the right one for you. But if you are looking for funds or capital to finance a new project or other aspects of your corporation, this is the best loan option.
Our team at Commercial Real Estate Loan Pros of West Palm Beach can arrange the terms of the credit based on your needs and what you will use it for in your business. We encourage you to access our private services instead of relying on a bank for the reasons below:
- You will deal with lower interest rates.
- The requirements to apply for the loan will be fewer.
- We build the terms and conditions based on your business and not general requirements alone.
- You will have more flexibility and freedom with repayment and any collateral you provide for the loan.
How to access commercial and industrial loans?
Just as we pictured before, or the example we gave you, they are very similar to an individual or personal loan, but the terms are the ones that vary. Now, the process of applying and getting the loan approved can vary depending on the lender.
To start, banks a different system to provide this type of loan which relies on asking for your documentation, make sure you fulfill every requirement, and get back to you in days to either approve or deny it. If you get your credit approved, you will have to wait for over 2-3 weeks to finally access the funds, which is the main reason banks or similar institutions might not be the best options as lenders. When you get access to the funds, you should have agreed to the terms in the contract and start to repay on a monthly basis.
For private lenders like us, there’s no a big difference in how they work and the process we offer, but it will be essential for your business. At Commercial Real Estate Loan Pros of West Palm Beach, we also have requirements you have to fulfill in order to apply for the loan. But instead of a large list of them, we will most likely want to know about your credit score—which isn’t a limitation compared to when you apply with other lenders—, your personal and commercial finance record, and the collateral you will offer for the credit.
Once you have sent your application, we will contact you in only a few days. If approved, we will set the terms that consist of lower interest rates, more time for repayment, and flexibility with the collateral you offer and who can keep it. If you agree with the conditions, you will access the funds in the next 2 to 7 days at most, not 2 or 3 weeks.
What are commercial and industrial loans used for?
As we were explaining before, they are destined to be used as working capital, capital financing, or acquisitions and mergers. Overall, there’s no something specific you have to use the credit for as long as you are using it for your business, its goals, projects, and any other aspect related to it.
However, properties are a big ‘no’ as well as lands, and the reason why the usual uses for the loan are the previous ones is due to the nature of the repayment time. Since you cannot last for over 2 years with the debt, you are more limited with either the amount or purpose you will use it.
Therefore, saying it is for new equipment or financing new projects for your business is more than accurate.
Now, the main focus would be to improve your cash flow and have enough to cover simple payments and responsibilities. Many businesses that have requested this credit were aiming to keep the cash flow going and prevent any problems during an expansion or new investment for the company.
Since the interest rates are lower and how the loan works are much more flexible—especially with us—compared to regular ones, it is possible and highly recommended. With that said, you need to find the right lender for it. If not, you might end up with higher rates, less time for repayment, and the terms of the credit can be more on the benefit of the lender than the borrower.
Our team will make sure to think about your needs and adjust a loan based on your organization and what you can afford. Therefore, for this and more, make sure to rely on us.
There are so many areas or regions where we offer these services with most of them being cities.
However, if you need any of these services, you need to contact us. The list below comprises the areas where we offer these services.
We service all counties and cities throughout South Florida. However, if you need any of these services in other cities throughout the state of Florida, please contact us. See what services we offer below: