4 Types of Commercial Real Estate Loans

To become a successful real estate investor, one needs more than just market knowledge. Acquiring and managing finances is important for every investor, especially when operating in a seller’s market. One needs to find trustworthy sources for long-term and short-term financing to seal lucrative deals. A commercial real estate loan can be attained by an investor who intends to profit from a property deal. These loans have various types, four of which are discussed below.

1. Small Business Administration Loans

Small businesses can apply for a commercial real estate loan through SBA to purchase property for business use. The applicant business owner has to prove the company’s profit potential to SBA and earn various qualifications.

2. Permanent Loans

Business managers can also apply for a permanent loan to purchase a property. These loans usually come at a fixed rate and can be adjusted to meet individual borrower requirements. The borrower is liable to pay this loan back in five to fifteen years.

Payback time for a loan

3. Asset-Based Loans 

A hard money loan can also be used by a small business to meet various financial needs. The payback period of this loan is shorter, and the interest rate can be relatively higher.

4. Bridge Loans 

A bridge loan offers timely financial relief to investors who cannot acquire long-term debt. These loans bridge the gap between bank loan approval and issuance and take investors out of financial distress.

If you wish to apply for any of the commercial real estate loans mentioned above, Global Capital Partners Fund can be your biggest helper. The company has helped many small businesses take control of their financial fate with the help of asset-based financing. Give them a call now and grow your business to its potential.

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