If you harbor plans of expanding, developing your premises or buying commercial property, it would be necessary to consider taking credit which is very specific in this case. You would need an Atlanta commercial property loan to make all these dreams true. You would first of all need to appreciate all there is to know about this type of loans.
Since you are the borrower, you will have the option or freedom to choose the most suitable repayment period that ought to fall between 2-30 years during the application process. You must ensure that you also have adequate security to cover this advance. You will only be able to access a certain percentage of the full value of the security you offer.
You can offer a building, apartment complex, land or warehouse as your security. The proceeds you get from these properties will then be used to offset the loans repayments. If you utilize these premises for mixed use than the institution offering you the facility will determine the kind of credit options that are available for 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.
Since you are the borrower, you will have the option or freedom to choose the most suitable repayment period that ought to fall between 2-30 years during the application process. You must ensure that you also have adequate security to cover this advance. You will only be able to access a certain percentage of the full value of the security you offer.
You can offer a building, apartment complex, land or warehouse as your security. The proceeds you get from these properties will then be used to offset the loans repayments. If you utilize these premises for mixed use than the institution offering you the facility will determine the kind of credit options that are available for 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 Commercial Loan he recommends you check out www.ifundinternational.com.