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Financial DirectoryAdd URL to the Commercial Lending Directory Commercial Lending Directory 1 Commercial Lending Directory 2 There are basically two different types of lending. There is consumer and commercial lending. Commercial lending is tailored towards businesses and corporations that are looking to purchase real estate or inventory. Some businesses seek commercial lending to get out of debt, or they can use the loan to improve their financial standing. Commercial real estate lending is the most popular form of commercial lending. You can use these funds to purchase a new office building, or to repair an existing location. You will be responsible for a repayment schedule similar to any personal loan. There will be a certain repayment schedule and an interest rate that may or may not fluctuate over time. Consult with your accountant to find out the specifics of commercial lending in the tax arena. If you are seeking out commercial lending, your bank will want to go over certain criteria to make sure that you a good candidate. The following is a list of common questions that the lender will ask: 1. Character- does the company have a track record of paying off previous credit obligations? Are they a successful company that looks like it will continue to grow in the years ahead? Does the management team have the company's best interests in mind? 2. Capacity- does the company have the funds to pay off the debt? The bank will want to determine the amount of debt vs. profit. If the company has a positive cash flow, they will likely receive some sort of commercial lending assistance. 3. Collateral- does the company have something to back up their commercial loan? This could be inventory, real estate, or other investments. Such back ups can go a long way in helping you secure a bigger loan. 4. Capital- how is the company doing in the economy right now? Is the industry strong? 5. Conditions- economic conditions, geographic conditions, etc. The bank will want to look at all sides of the business to ensure their continued success.
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Commercial Lending Directory Web Page.
Need help getting commercial lending?
Find Commercial Lending Resources here.
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