Financing Done Right

A commercial real estate loan is used to purchase commercial property. You can use commercial mortgage loans to buy real estate for use in your everyday operations or to buy properties as an investment. There are various types of commercial real estate loans, including permanent loans, which act as a first mortgage on a commercial property. There are also blanket loans, which are designed to cover the purchase of multiple properties. Our business consulting staff can work with you to tailor loan products that fit your unique business needs.

A business line of credit is a type of commercial loan that shares many characteristics of a credit card. Instead of getting your funds in one upfront lump sum, you’ll qualify for a maximum amount. You can then draw funds from your line of credit as you need them. The best part about this is that you pay interest only on what you use— not for the maximum amount. This makes a line of credit great for businesses who may occasionally need funds to cover operating expenses or to purchase equipment as you go.

Your line of business may require that you own equipment to produce your products or conduct your service. Equipment can come with a hefty price tag that exceeds your cash on hand. Instead of buying your equipment outright, you can finance it through a loan. This means that you can pay for it over time— with interest payments included, of course. Many times, the equipment itself will serve as collateral for the loan, which makes this type of loan easier to qualify for than others. 

A business term loan is a flexible loan with a consistent repayment schedule. Because you can use the money however you see fit in your business, a term loan is great if you have different areas of expenses to cover.

A commercial construction loan is similar to a real estate mortgage. The difference is that a construction loan is designed to cover designing and building a structure that doesn’t exist yet. So whether you have a vision for a brand new owner-occupied office space, a business center, or a towering multi-family real estate investment, a commercial construction loan would be the product to make it happen from scratch.

The U.S. Small Business Administration (SBA) has several loan programs that small business owners can apply for. Each SBA program comes with its own set of intended uses and eligibility requirements.

• SBA 7(a) loans: The 7(a) is the SBA’s most common loan program and can be used for anything from real estate, short- and long-term working capital, refinancing business debt, and supplies.
• SBA 504 loans: 504 loans are designed for businesses that are purchasing major fixed assets, such as an office building, that will help grow their business.
• Microloans: These loans are smaller with a maximum size of $50,000 and are meant to help small businesses start up and expand.

SBA loans aren’t actually funded by the SBA themselves. The SBA provides loan guarantees that help lenders mitigate many loan risks associated with providing business loans; the funds are provided through both private lenders and financial institutions. For example, you could apply for a 7(a) loan through bank or credit union participating in SBA loan programs. Certified development companies provide SBA-backed 504 loans, and SBA microloans are funded through intermediary lenders that partner with the SBA.

Bridge loans are designed to fill the gap between what a business needs at the moment and a longer-term financing solution. These shorter-term loans generally have higher interest rates than permanent loans, but allow businesses to meet immediate obligations or expansion goals. This type of loan is most often used as a component of commercial real estate financing.

Many businesses need to purchase products upfront in order to produce finished goods and that add value to products that will be sold after manufacture, assembly, or integration. For example, if you have a clothing line, you may purchase materials upfront in bulk, even if your designs won’t hit the shelves all at once. Inventory financing is designed to help cover these costs. This type of loan is secured by the inventory as collateral. 

Invoice financing can be approved on a case-by-case basis.

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