- What can a commercial loan be used for?
Commercial loans can be used to fund a property purchase for a business or refinance a loan for a business.
- How do I qualify for a commercial loan?
Qualifying for a commercial loan generally requires meeting certain eligibility criteria set by lenders related to the purpose of the loan. Factors considered may include the borrower’s business financials, creditworthiness, business plan, collateral, and industry experience. Lenders may also evaluate the business’s cash flow, and
profitability. - What documentation is required to qualify for a commercial loan?
Requirements may vary according to the borrower’s situation or background.
- What interest rates can I expect for a commercial loan?
Commercial loan rates are generally higher than residential loan rates, since interest rates vary according to loan purpose and the securities.
- Do I need collateral for a commercial loan?
Yes, in most cases, security and collateral are required. However, lenders offer unsecured loans in some special
circumstances. - How much can I borrow with a commercial loan?
The loan size depends on various factors, including the lender’s policies, the borrower’s financials, the purpose of the loan, and the value of the collateral being offered. Generally, commercial loans can range from a few thousand dollars to millions of dollars.
Why do entrepreneurs need a business loan? Here are just some of the good reasons