When looking to buy real property, developing or expanding your current premises, you should consider taking out a precise advance. It would be great to get an Atlanta commercial property loan to help you in making your dreams true. It would be important to learn some important facts about this option though.
As the borrower, you have the freedom of choosing the repayment period which should be between 2 and 30 years while applying for these loans. You should also secure them using either the commercial premises you have or any other security. You are allowed to borrow only a certain percentage of the total value of your security.
You can be able to offer your land, warehouse or even the commercial building you own as your security. The proceeds you usually get from them will be instrumental in settling the monthly repayments. If the security you offer has several uses then it will be up to the lender to decide on the options they will avail to you.
You will be required to demonstrate a good personal and business credit record. The lending institutions will also look at your credit history to determine whether you have the capacity and assets to pay off your outstanding loans in case of default. They may also ask for proof of your business profitability.
You should also be ready to pay off some huge prepayment to enable you access your approved facility in order to cover the huge risks involved. Most places will ask for 30 or 40% of the total amount needed to purchase the assets and then finance the remaining balance. This is the loan to value ratio that is applicable in most cases for such credit transactions.
If you were to consider prepaying your credit before the maturity date is due, you will need to understand their restrictions. They are set in place in order to shield the company from losing out on the anticipated profits they expected to make from you. You must pay some certain amount of money in prepayment penalty.
Before your whole loan application process gets approval, you will be needed to prove to the lending company that you have a solid income stream. You would also need to prove that your management team has a good profile as well as the building blueprints and plans. Just in case you have a single tenant on them, they must demonstrate that they have the requisite financial strength to cover their rents as they are considered part of business.
As the borrower, you have the freedom of choosing the repayment period which should be between 2 and 30 years while applying for these loans. You should also secure them using either the commercial premises you have or any other security. You are allowed to borrow only a certain percentage of the total value of your security.
You can be able to offer your land, warehouse or even the commercial building you own as your security. The proceeds you usually get from them will be instrumental in settling the monthly repayments. If the security you offer has several uses then it will be up to the lender to decide on the options they will avail to you.
You will be required to demonstrate a good personal and business credit record. The lending institutions will also look at your credit history to determine whether you have the capacity and assets to pay off your outstanding loans in case of default. They may also ask for proof of your business profitability.
You should also be ready to pay off some huge prepayment to enable you access your approved facility in order to cover the huge risks involved. Most places will ask for 30 or 40% of the total amount needed to purchase the assets and then finance the remaining balance. This is the loan to value ratio that is applicable in most cases for such credit transactions.
If you were to consider prepaying your credit before the maturity date is due, you will need to understand their restrictions. They are set in place in order to shield the company from losing out on the anticipated profits they expected to make from you. You must pay some certain amount of money in prepayment penalty.
Before your whole loan application process gets approval, you will be needed to prove to the lending company that you have a solid income stream. You would also need to prove that your management team has a good profile as well as the building blueprints and plans. Just in case you have a single tenant on them, they must demonstrate that they have the requisite financial strength to cover their rents as they are considered part of business.
About the Author:
Tom G. Honeycutt is a full-time real estate entrepreneur in Atlanta, GA. Tom helps readers by providing practical and useful knowledge to better understand lending choices. If you are looking for Best Atlanta Business Property Loan he recommends you check out www.ifundinternational.com.
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