Finding The Best Commercial Loans In California
Finding a resourceful competent California based Commercial loan broker is the first step in getting a suitable loan for your project
. There are various types of Commercial loans and each has its pros and cons. Finding the right match is the specialty of a good broker.
Commercial loans California
If you are thinking about purchasing or refinancing a Commercial property (Apartment, Retail, Special Purpose or other) you need to take several factors into consideration. Unlike residential loans while credit score is important it is not as crucial as in Residential loans. A credit score of 680 is usually sufficient and a lower score will not preclude you from getting a loan. In order to boost your credit score all you need to do to get your loan is to pay some of your credit card depts. In order to get your score around the 680 mark and that would be help in qualifying for a commercial loan California.
The most important criteria is whether the commercial property generates enough cash flow to support the new loan and whether you as a borrower have the necessary experience to mange such a property. The next step is to find out how much you have to pay as a down payment. Normally, commercial loans California require around 20 % to 40 %. SBA loans have a lower down payment but have to be owner occupied. Also typically the down payment cannot be borrowed, if it is borrowed there has to be another source of additional income to service the down payment.
The type of Commercial property plays a key role too in the amount you can get. Your personal debt, additional collateral etc. The income history of the commercial property is another key factor.
Gas station loans
Gas station loans are considered a special purpose type property. It is considered a very active business because you have many customers on daily basis and that can help you to pay for your loan easily. However, environmental issues have made this a very difficult segment. Make sure that your loan broker has a track record on Gas Station loans to avoid last minute surprises. These typically require 20-40% down payment and Borrower experience is crucial.
Liquor store loan
A Liquor store is one of the most financially stable businesses in California. How often have you seen a Liquor store go out of Business. Most of these stores are leased and the only avenue for financing is an SBA loan. These are very specialized loans and it is crucial to have a loan broker with track record in doing these loans. There is little or no hard collateral and most of the value is in the goodwill. These are high cash businesses and often the only way to value them is to stand behind the register and check out the sales and mark ups. These typically require 20-40% down payment and the Inventory financed too. Borrower experience is crucial. So look for some good loan expert for liquor store loans
Motel loans
This is a specialty loan and with the current downturn in this industry, most lenders are staying away from Motel loans. Franchised properties with high occupancy rates are preferred. Typical Down Payments are 20-40% and Borrower experience is crucial.
Before you proceed with your financing needs, you need to contact a reputable and experienced broker. A competent Commercial and Business loan broker like Neil Advani can guide you through the pitfalls of this process. This competent broker can show you businesses up for sale, give opinions of value, help with due diligence and get you the financing at optimal terms.
by: SEO Global Expert
Bad Credit Unsecured Personal Loans -no Impact Of Your Credit Score Cash Advance Loans: Great Monetary Support In Pressing Conditions Quick Loans Quick Personal Cash Unsecured Personal Loan: The Best Way To Meet Your Urgent Needs Now! How To Improve Your Chances Of Getting A 100 Mortgage Instant Loans: Dos And Don'ts When Applying For An Instant Loan Same Day Loans: Cash Within Moments Advantages Of Home Improvement Loans Why do I need online payday loans? Same Day Loans: Helping Hand In Your Urgency Why Pay Day Loans Make Lousy Student Loans: 7 Reasons Business Loans For Women: Finance Your Business Requirements With Ease And Comfort Non Secured Loans: Avail Security Free Funds For Any Of Your Requirements