Loan Resources

Commercial

Our commercial loan programs can be tailored to your specific needs, whether you are looking for the perfect location to start your business or investing in property to expand your portfolio. We will help you obtain the property you want in the easiest, most efficient manner possible. The information below will help you get started on your commercial loan. To get started immediately click here for our on-line application.

The In’s and Out’s of Commercial Underwriting
Types of Commercial Loans
Financial Preparedness

The In’s and Out’s of Commercial Underwriting

Commercial financing is underwritten on an individual basis. Because every loan application is different it is assessed on its own merits. All borrowers seeking a commercial loan face an evaluation of the Debt Coverage Ratio (DCR), credit worthiness, and property condition. First a financial analysis should be completed. This analysis includes an evaluation of the debt coverage ratio. The DCR is your monthly debt compared to your monthly income. Following the DCR analysis, your credit worthiness will be evaluated. This portion of the analysis will look at past financial records for the business and may include personal financial history in certain cases. Finally, the condition of the property is examined. All of the above factors will influence your ability to secure a commercial loan.

Types of Commercial Loans

There are many types of commercial financing options available to borrowers, including adjustable rate commercial loans, wrap around mortgages, credit lines, and balloon loans. Adjustable rate commercial loans have an interest rate that varies through out the life of the loan. A wrap around mortgage is a new mortgage, which literally wraps around the old mortgage. By using a wrap-around mortgage, the buyer makes payments on the new mortgage directly to the seller, and the seller continues to make payments on the old mortgage. Credit lines provide a business with resources to fill temporary cash shortages that are the result of the difference between the period of cash outlays and collections. Credit lines are usually used to finance project or contract related work, receivables, and inventories. Commercial borrowers are also able to obtain a balloon loan. Balloon loans feature fixed interest rates for a specified period of time. When the loan reaches maturity the outstanding balance must be paid in full by the borrower. As reviewed, there are many financing options available to commercial borrowers, your investment plan should be evaluated prior to deciding on a specific type of commercial loan.

Financial Preparedness

Commercial lenders evaluate many different types of financial information to determine if your business is worthy of a commercial loan. Lenders often require three years of income tax and financial statements, profit and loss statements and balance sheets. In many cases personal financial statements are also required. Projected cash flow statements and pro forms for the next 12 months are commonly requested in addition to a complete business plan. When all financial data is presented it will then be evaluated and a decision regarding your loan will be made.