Commerical Loans In Medina Ohio

Business Owners Now Have An Easy Option To Funding

If your upfront cost are becoming to hefty or if you need a few extra dollars for equipment, seeking a Commercial Loan could be your best option.

What is a Commerical Loan?

A commercial loan is a loan usually given by a bank or another financial institution. The purpose of this loan is usually for businesses to borrow small to large sums of money for operational costs, property, or even equipment.

How can I qualify for a Commercial Loan?

General documentation such as balance sheets and other documents that prove you have stable cash flow. This will help prove to the lender that money is coming in to pay back the loan. Keep in mind that banks usually require monthly statements from the business throughout the loans lifetime. Sometimes they may require you to take out insurance on large items purchased from the loan. We’ve provided a fuller list of might haves.

  • Recent bank statements
  • Balance Sheets
  • Profit & Loss statement
  • Personal and business tax returns
  • Use of loan
  • Business plan
  • Collateral Documentation
  • Cash flow forecast

How do I determine the type and amount of Commercial I need?

Each loan has unique terms and qualifications. You should determine the approximate amount to borrow depending on your current needs. Different types of commerical loans include;

  • Traditional term loans
  • Short-term loans
  • SBA loanst
  • Equipment loans
  • Commercial real estate loans
  • Business line of credit
  • Merchant cash advances

When choosing a lender, make sure that you pay attention to getting adequate capital that will meet cash-flow needs. Failure to achieve this may result in a failed small business. Commercial lenders may be hesitant to finance the loan, based on the amount of money you apply for. For instance, small businesses borrowing over $4 million will be treated differently by potential lenders than those borrowing less than $2 million.

How much is the down payment for a Commercial Loan?

Most commercial lenders ask for a minimum 30% down payment. Chosing a loan that is in your price range is important. That's way understanding your intent is extremely valuable. If you have the means to put down a large down payment, it's advised to do so. Your monthly payments can be reduced with large downpayments. 

Can I use a Commercial Loan for rental property?

Yes, larger residential rental properties, even multifamily housing properties.

Why are Commercial loan rates higher than home loans?

These loans are not supported by governmental bodies. As a result, commercial lenders are risk-averse and charge higher interest rates compared to home loans. Be careful to consider the amount borrowing and loan repayment terms. Typically, non-bank lenders offer less strict credit requirements and may offer long term commercial loans.

What happens if I default on a Commercial Loan?

These loans usually require business collateral, such as property, plant, or equipment that the bank can confiscate from the borrower in the event of default or bankruptcy.