Financing is a big part of getting the right commercial location secured to start a small business. Here’s a few important boxes to check on where to find commercial real estate loans and how to get approved for one.
Like the name implies, commercial real estate loans are a mortgage loan that applies to a commercial as opposed to a residential property. Commercial properties are those that produce business income. Commercial loans can be used to purchase office locations, retail stores and a variety of other places and buildings.What Are Commercial Real Estate Loans?
There are some differences between commercial real estate loans and their residential counterparts. The terms are shorter on commercial loans that they generally range from five years or less to 20 years.
They also require a final “balloon” payment at the end to pay off the loan in full. For example, a $2 million commercial loan might have monthly payments of close to $12,000 a month with a balloon payment of $1million at the end to pay outstanding balance of the loan right off.
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