The Types Of Commercial Lenders Loans And Properties

Considering there are all different types of commercial properties, you can imagine there are different commercial lender types as well. The following is an explanation of some of the different kinds.

Acquisition Loans

Acquisition loans are when a person is trying to purchase or “acquire” property. Another type of acquisition loan is an acquisition and development loan. These loans are also for acquiring property, but the purpose of purchase is for development of the property. This type of loan generally follows a process called voucher control when it comes to disbursement.

Asset Based Loans

A person gets an asset based loan for a variety of different reasons, as the funds can be used for anything at all. This loan involves collateral being used to secure the loan.

Bridge Loan

The bridge loan works in respect to its name, providing a bridge until financing can be implemented permanently. As you can imagine, these loans are great for being able to quickly pull the trigger on a commercial acquisition or perhaps a new business venture. Foreclosures and construction are two other reasons these loans are given. Remember, these bridge loans only bridge the gap until traditional financing can be approved.

Construction Loans

Construction has been mentioned in regards to commercial lenders, but there are various types of these construction loans. First, these loans are of course given for either a new development or a remodel. Generally speaking, when it comes to these loans, assets and improvements on the land serve as collateral for the loan. Disbursement is done by allotment as money is needed to continue the construction project.

Debt Consolidation Loans

This is exactly what it sounds like, as debts are consolidated into one payment each month. This is typically a lower overall monthly amount, making it easier on the establishment to pay up. The interest rate is often going to be lower on these loans, and they are often considered when debts are overwhelming.

Development Loans

These loans were touched on earlier, but they are in their own group as well. Commercial lenders provide loans for new development projects and for improvements that need to be made to a property.

Refinancing Loans

This type of loan is given by a commercial lender on a property when a person finds out they get can better loan terms than they currently have on their commercial loan. Typically, this is often realised when interest rates have been lowered. These are popular loans for small businesses as they try to be competitive out there in their niche when starting out.

With all these types of commercial lenders and loans given, you might be thinking about various types of commercial properties. There are of course apartment complexes, office buildings, theatres, hospital and medical facilities, convenience and grocery stores, tracts of land, dealerships, churches, malls and shopping centres and much more.

If you’re needing a commercial loan, then you fit into one of those above categories. Look at all the different categories for types of properties, and match the loan type according to your business needs.

Are you acquiring property, or do you already have property? Are you renovating the property? Most of the loans are self-explanatory, with a few of them really getting specific. This makes it easier to match yourself with a commercial lender.

Perhaps you’re wanting to refinance a property that you already have financed. If interest rates are lower, or you’re curious to see if you can get better terms and conditions, inquire with a commercial lender.

Or, maybe it’s a bridge loan that you need so that you can take advantage of a business deal that is likely to get away before you’re able to secure traditional financing. Then you can get whatever loan you need to begin after the bridge loan. Whatever your business loan needs are, there is an Auckland corporate finance company for you.

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