What’s a Commercial Loan and How Can It Benefit Your Business?

| August 2, 2018 | 0 Comments
What's a Commercial Loan and How Can It Benefit Your Business?

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If you are running a small business, chances are you’re constantly thinking about ways to build and grow your business. Finance companies know how important your business is to you, which is why they offer a Healthy Business Checklist to help you identify ways to strengthen your business. Like most business owners, you probably already know a few improvements you’d like to make if you had the funding—that’s where commercial loans come in.

A commercial loan, like those offered by www.EquifyLLC.com, is just that—a loan granted to a commercial entity (or business) instead of to a specific individual. Commercial loans, also called business loans, are usually used to make large capital expenditures or cover operational expenses. Most businesses can benefit from a commercial loan at some point in the life of the business, and many times more than once. Here are five ways that commercial loans can help your business:

What's a Commercial Loan and How Can It Benefit Your Business?

1. A commercial loan can help you start a new business or franchise

Whether you are looking to build a new business from the ground up or buy into an existing franchise opportunity, starting a business takes large amounts of capital. Unless you have all the necessary funds set aside already, a commercial loan is a great option for funding the first stages of your business.

2. There are special commercial loans for purchasing real estate and equipment

If you’ve ever shopped for heavy-duty equipment or commercial real estate, you know why many small business owners wait years lease for many years before buying their own equipment or property. If you are waiting to make a big equipment or real estate purchase, you may be a perfect candidate for a business loan.

3. You may be able to open an ongoing line of credit

One type of commercial loan is a business line of credit. With a business line of credit, you will have greater flexibility in how much to borrow when. You may have to pay a fee each time you withdraw funds, but the ability to quickly access credit when you need it can give you a great advantage when opportunities arise for your business and you can’t afford to wait.

What's a Commercial Loan and How Can It Benefit Your Business?

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4. You don’t have to be a big business to benefit from a commercial loan

Commercial loan amounts vary greatly, which means businesses of all sizes qualify. Whether you need a one-time loan of $10,000 or hundreds of thousands of dollars in capital, there is a commercial loan for your business.

5. The Small Business Administration guarantees some loans.

SBA-backed loans have quite a few advantages over other commercial loans:

  • SBA-backed loans offer higher borrowing limits and lower interest rates than other commercial loans.
  • Qualification terms are more lenient with SBA loans, which is especially helpful for new businesses that are short on capital. Even if your business doesn’t qualify for traditional commercial lines of credit, you may be able to get an SBA loan.
  • Some types of SBA loans (SBA 7A and SBA Express) even let you access capital over a longer term and with lower down payments than you will find from other lenders.

If you have been looking for ways to fun your business expansion or equipment purchase, a commercial loan may be just what you need.

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