Rhode Island may be our smallest state, but there are still plenty of commercial mortgage brokers in Rhode Island ready work with you to sort through Rhode Island commercial lenders. Not surprisingly, commercial mortgage companies in Rhode Island — and elsewhere — require more paperwork, including calculations like debt service coverage ratio and LTV (loan to value).

Commercial mortgages in Rhode Island often come with higher rates and balloon payments and will probably include usage restrictions and other covenants, depending on your situation. Like home mortgages, however, commercial mortgages are typically in the 20 to 30 year range. In short, there are many variations and options: What's crucial is that your payment schedule and contract terms fit into your business plan.

1. Research regarding commercial lending in Rhode Island is best done online

2. Don't fixate on out-of-state or on Rhode Island commercial lending companies

3. Avoid companies with spotty or untried reputations

Action Steps
The best contacts and resources to help you get it done

Use search engines to determine what Rhode Island commercial mortgage lenders are likely to offer

First, of course, you have to do your math and get your financials together for the ratios and cash flow information commercial mortgage brokers in Rhode Island need to determine your credit worthiness. Once you have your numbers together, it's time to start narrowing down the field of Rhode Island commercial mortgage lenders. There's more to it, of course, than finding the lowest price, but the Internet is the best place to compare lenders.

I recommend: Mortgage Loan website is a good place to start narrowing down your list of potential mortgage candidates

Search outside the state; don't limit yourself to commercial mortgage lenders in Rhode Island

National and regional lenders may have advantages of size and a wider range of offerings compared to home-grown Rhode Island commercial lenders. Factor in the advantages that local banks may offer against the variety and size of the national players.

I recommend: Bank Rhode Island is a local player; Paragon Commercial Mortgages is regional and iBank searches both local and national sources.

Make sure your mortgage business is in good hands

The last thing any business person wants to find out when the ink has dried, is that their Rhode Island commercial mortgage lender has a reputation for shady dealings. Whether you choose from among local commercial mortgage lenders in Rhode Island or go with a national player, do research to ensure they have a good reputation.

I recommend: Check out your lending candidates with the Rhode Island Mortgage Bankers Association.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Ask colleagues and friends--both in your industry and outside of it--about their experiences with various lenders. The additional background and real-life stories can help sway a tough choice in the right direction.