October 06, 2015
Is a Commercial Mortgage Right For You?
When it comes to a commercial mortgage, it’s all about rates, right? Perhaps!
Business owners have numerous choices, and selecting the right loan can be a complex and confusing endeavor. Choosing a loan for your business isn’t just about the lowest rate option; it also should be about finding the best solution for your business’s future goals. While the loan’s interest rate is an important factor, it’s not the only factor to be considered. A commercial business mortgage at a great rate can still be the wrong loan for your business.
Other factors to consider include: the term and amortization of the loan, the monthly payment, tax implications, fees, your business’s current and future needs, prepayment penalties, covenants and, last but not least, the lender you choose.
Can one type of loan meet all of your business needs? It is possible. One option to consider is a loan backed by the U.S. Small Business Administration (SBA). The first step is to choose a bank with the knowledge and experience in SBA loans that takes the time to listen and understand your financial situation as well as your mortgage needs. During the loan process, you should consider these factors that may influence your decision: cash needs for your business; length of time you plan to stay in business and/or at this location; growth potential, i.e., will you outgrow this location; what can your business afford in terms of mortgage payments and down payment; collateral necessary to secure the loan; your bank: is it local, stable and strong?
The SBA’s programs are designed to offer you a loan that meets all your business’s needs. This means that financing to purchase, renovate, or construct a property can include moving expenses, new equipment, refinancing of existing debt, and working capital with a single loan. As Your Knowledge Bank, a bank like Beneficial will work closely with you to meet your current needs as well as lay a strong foundation for your future.
Regardless of your objective as a business owner, there is more to choosing a mortgage than just interest rates. Consider a commercial mortgage by utilizing an SBA loan and you may find an extraordinary alternative financing solution.
All loan products subject to credit approval.