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Small Business Loans: Buy Commercial Property

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Guide to Small Business Loans: Buy Commercial Property

How to get a small business loan to buy commercial property


 
 

Business Loans Quick Start

  • Sharpen your business plan as a first step toward applying for business loans
  • Start your search by comparison shopping at business loans Web portals
  • There are more sources of small business loans than banks: Try SBICs and even UPS
 
 
Most new business owners need to find small business loans for real estate in order to get the property they need to run their business. It's not common for a start up company to have the cash on hand needed to buy a property. Mortgage companies offering SBA loans for commercial property are a great help.

While it may take more time, it's always a good idea to shop around for small commercial real estate loans. You always want to make sure that you are getting the best possible rate. Even a difference of one percent can make a big difference in how much you pay total for the loan.

When you apply for small business loans to buy commercial property, remember the following:

1. Banks want to know your credit score and business plan before they will give you a small business real estate loan.

2. When using a small business loan for commercial property, you may be able to get lower monthly payments if you secure a loan with a balloon payment at the end of the term.

3. You will need to begin repaying your small business property loan immediately. You should have the cash flow to cover this.


Action Steps for Sourcing Small Business Loans Online

The best contacts and resources to help you get it done

Business Loans Action Step: Find companies that can offer you a commercial property SBA loan The Small Business Administration is a government program that helps small businesses get started. Loan money comes from a bank, but the SBA backs that money. This makes regular banks feel more comfortable when they lend you money.

I recommend:  The SBA offers a free course teaching you about the loan program. Once you understand the process, consider contacting Bank of the West, which is a lender that can give SBA loans.

Business Loans Action Step: Buy commercial property with a small business loan You can get a commercial mortgage through most banks. Make sure you let the bank know that you are a business owner looking for commercial property. Commercial and residential mortgages are quite different.

I recommend:  Look to Bank of America or Wells Fargo for your commercial mortgage. Both of these banks have the experience necessary for a smooth transaction.

Business Loans Action Step: Find small business loan providers for commercial property Commercial property can be quite expensive based on the type of property you want to buy and the area of the country. If the amount exceeds certain limits, you'll need to apply for a jumbo mortgage. Look for banks that offer these jumbo mortgages for small business owners.

I recommend:  Look for large, national banks if you need a jumbo mortgage. You can apply online for a jumbo mortgage through Wachovia. Chase offers fixed rate jumbo mortgages as well. A fixed rate will often save you money in the long run.

Tips & Tactics for Successful Business Loan Application

Helpful advice for making the most of this Guide
  • If the large banks turn down your request for a commercial property small business loan, talk to a small local bank. These banks typically offer more personalized services and may be more likely to work with local business owners.


Guide to Small Business Loans: Buy Commercial Property
By Shannon Tani
Financial Services
User Rating
8.0
out of 10
How to get a small business loan to buy commercial property.
Most new business owners need to find small business loans for real estate in order to get the property they need to run their business. It's not common for a start up company to have the cash on hand needed to buy a property. Mortgage companies offering SBA loans for commercial property are a great help.While it may take more time, it's always a good idea to shop around for small commercial real estate loans. You always ... Read more



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