When you lend loan from any bank or finance company in order to solve commercial needs, say for example purchasing inventory or movement of goods, Commercial Loan gives the facility to solve this purpose.
The following Criteria are seen by the lender before involving their money in any business:
If the borrower fulfills those needs, then one can expect to get the loan easily.
Various finance company and banks have opened their door to facilitate loan for the commercial purpose, if the borrower fulfills their criteria properly. To name few of them are:
You can find various types of Commercial Loans present in the market:
In this type of loan, lender takes any commercial building or business house as collateral. So, it is not the loan for individual borrower, but it is given to any partnership, private limited company or incorporated business.
Interest Rate: Interest rate is higher than the residential mortgage.
For this loan, interest rate is of two types:
When any lender finances any business to purchase any property exclusively for the business purpose, then this kind of a loan is considered as Commercial Property Loans.This loan is also used for expanding or growing business and even refinancing the existing debt.
Which properties do fall under this category of loan to be funded?
While the loan is provided for the purpose of constructing any office building or retail center etc. for commercial purpose, then it is called Commercial Construction loans.
Few criteria need to be fulfilled in order to avail this loan:
Profit test: Lender sees whether project has the strength to earn the profit more than the money required to construct that commercial building.
Loan-to-value: If after construction, your commercial building is fully occupied but lenders still want to see whether construction loan is lesser than loan-to- value.
Mezzanine loan: If say for example lenders allow for 80% of loan-to-value, but if the borrower still needs equity, mezzanine loan is available.
Commercial Vehicle Loans: is ready for those borrowers who want to purchase any commercial vehicle like Light commercial vehicle or LCV, heavy commercial vehicle or HCV, trucks etc for their business purpose.
Commercial Vehicle loans are available for different types of funding:
Feature of the loans
Commercial Truck loans are available for the down payment of the purchasing Truck.
Loan Amount: One can avail the 100% finance even up to $25,000 for the borrower with improved credit history.
Variety of truck finance: Depending on the variety of trucks, financing for this vehicle also varies:
Small commercial loan is nothing but loan with smaller amount, SBA or Small Business Administration with the help of its Micro Loan program provides loan up to $ 35,000 for the business.
Criteria: Few criteria should be met before the lender provides you loan:
Depending upon the requirement of the business, various Banks and other financial organization provides commercial loan in Melbourne.
To name a few: