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5 Tips to Find the Right Commercial Real Estate Loan

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If you thought that getting the right residential mortgage was challenging, then we have some bad news and good news for you. The bad news is that compared to finding the right commercial real estate loan, hunting for the right residential mortgage can seem like a proverbial picnic.
Now for the good news: if you’re armed with accurate information and steer clear of prospective lenders that specialize in over-promising and under-delivering, then you can count on getting the financing you need to strengthen your business for decades to come.

finding the right commerical real estate loan

5 Tips to Find the Right Commercial Real Estate Loan

  1. Make sure you understand the processing time: Many lenders claim to process a commercial real estate loan application in “30 days” (or some other agreeable duration), but then wind-up taking months to seal the deal. Make sure that you get a firm commitment regarding the realistic processing time, and not an exaggerated quote.
  2. Explore all of your options: Typically, your search for the right commercial real estate loan will include various banks — big, medium and/or small. However, you should also explore what’s available in the alternative lending marketplace, so that you have a complete picture of your options. Compared to banks, firms in the alternative lending marketplace are usually much more flexible in terms of application requirements, and the processing time is much faster. What’s more, you can completely ignore the myth that the “safest” lender is one that is geographically close to you. You can and should look nationwide!
  3. Have a robust plan for using the loan: You’ll save yourself time and money — plus increase your negotiating leverage with prospective lenders — if you’re prepared with a robust plan for how you’ll use the commercial real estate loan, and why the investment makes smart business sense. Also ensure that your plan includes a timeframe for when you anticipate the project coming to an end.
  4. Review your balance sheet: Once your property is purchased or built, you certainly don’t want to run out of cash — because that will force you into an untenable situation: either you default on the loan and continue operating the property, or you continue servicing the loan and cannot run the property (or at least, not in a way that maximizes its income-generating potential). By reviewing your balance sheet ahead of time, you’ll be able to see whether it makes sense to augment your reserves with a working capital loan and/or have a business line of credit available just in case.
  5. Don’t underestimate the importance of a good relationship with your lender: Last but certainly not least: a commercial real estate loan isn’t like purchasing a typical product or service for your business. It’s a long-term relationship, and you want to know that your lender will consistently lean forward and help you maximize value — and minimize costs — well after the deal is signed and sealed.

Learn More About Commercial Mortgage Financing

At National Business Capital, we proudly provide commercial real estate loans to businesses across the country — from small firms to large organizations. To learn more, contact us today or fill out our two-minute application. Your consultation is free, and we’re here for you 24/7/365.

Last Updated on December 6, 2017

National Business Capital is the #1 FinTech marketplace offering small business loans and services. Harnessing the power of smart technology and even smarter people, we’ve streamlined the approval process to secure over $1 billion in financing for small business owners to date.

Our expert Business Financing Advisors work within our 75+ Lender Marketplace in real time to give you easy access to the best low-interest SBA loans, short and long-term loans and business lines of credit, as well as a full suite of revenue-driving business services.

We strengthen local communities one small business loan at a time. For every deal we fund, we donate 10 meals to Feeding America!

About the Author, Joe Camberato

Joseph Camberato, CEO at National Business Capital & Services, developed a passion for business at a young age. Joseph has a true respect for anyone who owns a business and enjoys engaging them in discussions of how they “made it happen.”

Disclaimer: The information and insights in this article are provided for informational purposes only, and do not constitute financial, legal, tax, business or personal advise from National Business Capital and the author. Do no rely on this information as advice and please consult with your financial advisor, accountant and/or attorney before making any decisions. If you rely solely in this information it is at your own risk. The information is true and accurate to the best of our knowledge, but there maybe errors, omissions, or mistakes.