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  • Writer's picturePreston Morris

Commercial Real Estate Financing Youngsville

Why Use a Commercial Real Estate Loan?

When you’re expanding your business, you need a financing plan that can grow with you. Commercial real estate loans enable business owners to build or purchase new properties for their businesses when they need them — not when they have enough extra cash on hand. Business growth requires financing options that can be tailored to your projects’ specific needs, and most commercial real estate loans offer a certain degree of flexibility for business owners.

If you’re a small business owner who plans to expand your business in the near future, it’s time to consider the benefits of commercial real estate loans. The price of commercial real estate space is incredibly high, and few small businesses are ready to pay the price out-of-pocket. To navigate commercial real estate purchases, qualifying commercial businesses in PA should opt for commercial real estate financing.

Commercial Real Estate Financing Available for:

  • Medical Offices

  • Manufacturing Facilities

  • Multi-family Properties

  • Small Business Administration Financing

  • 1031 Exchange

  • Refinancing for Existing Commercial Loans

Hard Money Loans

It can be tough for some business owners to secure a real estate mortgage. Hard money loans allow these individuals to take out a loan backed simply by the value of the property. While this offers less stringent credit requirements, hard money lenders often lend only around 70% of the collateralized property’s value.

Hard money loans are inherently risky, as you’re putting your commercial property up as collateral. That means that if you default, the lender could decide to seize your property. This risk might be too much to bear, especially for companies where money is still tight. Click here for more details Please.

Commercial Construction Loans

If building or renovating your own commercial property is on the docket, but you don’t qualify for an SBA loan, a commercial construction loan might be your solution. The funds you get from these loans aren’t reserved solely for building materials. You can actually pay for a labor force with them as well.

However, commercial construction loans operate differently than traditional commercial mortgages. Rather than receive the full amount of your loan upfront, you’ll have to draw funds from the loan as you need them. This is commonly referred to as a “draw schedule.” As you progress through the various milestones in the construction process, the lender will send out an inspector to ensure things are complete. If so, only then will you receive the next payment.

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