Running a small business is a rewarding experience, but beyond guts and glory, aspiring entrepreneurs need to build enough resources to propel forward into the economy’s medium-sphere. It’s the point where you need to increase your capital, and spear headers who need financial support to break into the industry can benefit from leveraging commercial loans.
One of the most effective ways to fund a business, a commercial loan, can help kickstart one’s growth since lenders can offer a max out at around $500,000 and higher. When determining the overall loan terms and repayment period, commercial loans can branch into several types, so knowing each one can help you choose which conditions work best for your needs.
Commercial Loan Tips to Consider for Your Business
- Term Loans. Term loans describe the most common type of commercial loan, one that gives you more freedom to set the amount your business needs to borrow and the repayment time frame. No matter how long you agree to pay back the loan, it will be regarded as a fixed monthly payment, which means the interest rate will also be unchanging until you complete all your dues.
- Short-Term Loans. Small businesses that need extra money to overcome a financial hurdle — be it to bump up the marketing spend for a product launch, to restock inventory, or even cover for emergency repairs — short-term loans are the right choice in this department. Short-term business loans provide smaller amounts of money, which you’ll have to pay in increments within 18 months or less. It’s one of the easiest types of commercial loans to get approval since it deals with lower amounts of borrowed money.
- Equipment Loans. As the moniker suggests, an equipment loan covers investments you need to build your assets. Small businesses can use these assets as collateral for the loan, reducing the risks for both the borrower and lenders.
- Commercial Real Estate Loans. If your small business plans to expand, then part of the process of scaling up includes buying a new office space to accommodate the upcoming changes. Since real estate involves the largest investments, you’ll often find commercial real estate loans procuring the largest financial capacity with the longest repayment length.
The Bottom Line: Exploring Your Commercial Loan Options to Fund Your New Venture
Gathering sufficient sources to fund your start-up can be a daunting task, let alone build enough capital to buy a dedicated place to conduct your business. The first step to solidifying your position in the industry is typically the hardest. Fortunately, mortgage companies offer several types of commercial loans to help turn your vision into reality.
Are You Looking for a Reliable Mortgage company in Dallas to Help Jumpstart Your Business?
Starting a business is often an expensive feat, and when you need the financial aid to get the ball rolling, New Frontier Financial is here to help make it all happen. Our mortgage lenders are committed to helping you achieve your goals; that’s why we offer commercial loans that cater to different business needs.