Commercial Loans

Do you need commercial financing for an income property?  You can contact us directly to see what type of commercial loan and terms we can offer.

Commercial financing is a pretty broad term.  The term “commercial” simply means “business”.  For purposes of this discussion, let’s make a distinction between commercial real estate financing and other forms of commercial financing.

Commercial real estate financing obviously refers to the commercial financing of income property, which includes apartment buildings, office buildings, retail buildings – including commercial shopping centers and commercial strip centers, industrial buildings, hotels and motels, self storage projects and other, more specialized, commercial properties.

 

 

What our commercial financing doesn’t cover and some information about each

It is important to note that commercial real estate financing does not include loans for homes, condo’s, duplexes or even even four-plexes, even if these properties are rentals and generating income.  Loans on one-to-four family properties are   considered residential loans, not commercial financing.  The reason why is because the GSA’s (government sponsored agencies), like Fannie Mae, Freddie Mac, and FHA, will buy or guarantee loans on one-to-four family dwellings.

There are many other types of commercial financing.

Commercial financing includes loans on accounts receivable, equipment loans, inventory, flooring lines, and even unsecured lines of credit.

Another form of commercial financing is equipment financing.  Suppose you are a small manufacturer in the injection molding business.  Business is good, and you need a new injection molding machine.  it’s possible to go to a bank and get the bank to finance your purchase of a new machine.

Inventory financing is another form of commercial financing.  Let’s suppose you manufacture replacement keyboards for computers.  Suddenly you learn that you can purchase a huge shipment of plastic from a failed competitor for pennies on the dollars.  It’s possible to go to the bank and pledge your inventory of completed keyboards in return for a loan to buy that plastic.

As you can see, commercial financing includes far more than commercial real estate financing.  It includes all sorts of commercial financing.