Commercial Loans

Types of  Commercial Loans

Commercial loans are a special type of debt-based funding arrangement that is set up between a business and financial institution that is commonly utilized to provide the funds necessary for capital expenditures and/or to provide a monetary basis for operational costs.

Before applying for a commercial loan, it is important to know the types that are available to you. They are as follows:

The Traditional Term Loan

This is provided as a lump sum cash amount. You will be required to pay back the money provided, as well as the interest specified by the bank, over a set period of time. Most business owners opt for these loans when they have a relatively large expense associated with their business.

The Short-Term Loan

Business owners that have a small, one-time expense associated with their business may benefit from this type of loan. The amount borrowed may be as little as $10,000 or as much as $500,000. It is paid back with interest with daily or weekly payments in as little as 3 months or as much as 18 months.

The SBA Loan

This long-term loan is offered by the Small Business Administration. It has low-interest rates that are backed by the government. It is ideal for business owners that are seeking to cover recurring expenses or a one-time expense.

The Equipment Loan

If a business owner needs to purchase equipment, this is the type of loan commonly pursued. The equipment will serve as the collateral on the loan.

The Commercial Real Estate Loan

This type of loan is for business owners that want to either buy properties or upgrade currently possessed properties. The property serves as the collateral on the loan.

The Line of Credit

This is a revolving line of credit that provides access to cash to a business owner. That business owner may then take out the amount of money that they need when they need it. Interest is paid only on the amount drawn. As money is paid back, it is then added to the available credit line. This type of loan is much like that of a credit card. It is ideal for the business owner that has various expenses or irregularities in their cash flow.

 

If you have a desire to learn more about commercial real estate loans and want to start the application process, you may visit us at one of our 8 locations.

These include our Ohio Locations: North Eaton, South Eaton, Somerville, Camden, Oxford, Hamilton, New Lebanon, and the Mortgage Center in Richmond Indiana.

For more information, simply contact one of our friendly lenders and we will be more than happy to assist you.