What is a business loan?
Commercial business loans are offered by many types of lenders, including ones that finance real estate purchases, refinances and second mortgages. Mortgage lenders will typically underwrite these loans using the business property as collateral. Small business loans that qualify as SBA 7(a) loans are guaranteed by the federal government, providing lenders with security when financing these mortgages.
Lenders have the ability to finance up to $25,000 without collateral, but if the borrower desires a larger loan amount, they must provide real estate as collateral. Banks and other lenders offer mortgages with cash-out that can be used for business purposes, such as to buy equipment.
What are common uses for business loans?
- Partner buyout
- Equipment purchase
- Finance payroll and overhead
- Business expansion by additions or acquisitions
- Working capital
- Debt consolidation
- Inventory purchase
- Tenant improvements
- Purchase a business
- Satisfy a judgment
What types of business loans are there?
- Business acquisition, including real estate up to 90% LTV
- SBA 504 for the purchase of equipment and fixed assets
- Buy franchise or non-franchise property with quick closing turnaround up to 75% LTV
- No collateral funding in one day with business loan rates starting at 11%
- Business loans repaid by daily, weekly or monthly payments
Which lenders offer business loans?
Commercial banks and non-depository lenders finance businesses by offering mortgages and business loans.
How do I get a hard money business loan?
Hard money or private money business lenders may offer financing secured by real estate and other business collateral. These lenders typically don’t require extensive documentation and can work serve borrowers with bad credit. Private money lenders can make decisions quickly, based on the value of the collateral, providing money for business owners fast.
