Types of Commercial Loan or Commercial Financing

There are various types of commercial properties and there are many different types of commercial loans available for them. Enlisted below are few of the various kinds with a brief about them.

1. Fore mostly, there is Acquisition Commercial Loan or Commercial Financing. This loan aims at acquiring a property.

2. Next, there are Acquisition & Development Commercial Loans or Commercial Financing. As per the name suggests it is used to acquire property as well as develop it. Voucher control is typically configured to disperse loan proceeds with interest only paid on the distributed funds. The estimated improved value decides the loan to value ratio.

3. Then, there are Asset Based Commercial Loans or Commercial Financing. Such a Loan is used for any purpose and the collateral is put up for security.

4. Moving forward, there is a type of loan known as a Bridge Commercial loan or Commercial Financing.This type of loan is used for a short period of time until the permanent financing is set into the place. Bridge loans are one of the best temporary fix to an acquisition or business adventure as they allow a borrower to act fast. These loans can be used for buy outs,construction purposes and foreclosures.

5. Fifth, there are several kinds of Construction Commercial Loans or Commercial Financing. These loans are used for constructing buildings or make improvements in property including land improvements and other tangible assets used as collateral. Construction owners’ reserve accounts are kept to be able to disburse money as the progress of the construction goes on, with as much as the entire cost of the projects and construction available, which is entirely dependent on the value.

6. Next, there are consolidations of Debt Commercial loans or Commercial Financing. These loans are eligible to offer lower monthly payments by consolidating the debts into one loan and transforming it to one payment. When the average interest rate is much higher, it is possible to get a debt consolidation loan at a low interest rate. Even without a fluctuation in interest rates, a simple single monthly payment may prove to be worth in lowering payments.

7. Then, there is Development Commercial Loans or Commercial Financing which are taken for the purpose of developing or improving an actual property.

8. Eighth, there is the Construction Improvement and Rehab Commercial Loan. The construction improvement and rehab loan is a loan which is used to purchase an existing property, specifically aimed at the purpose of repairing deficiencies and remodeling.

9. Finally, there are Refinancing Commercial Loans or Commercial Financing. It is used to pay off any old debt from the money of a new loan that uses the same collateral. Usually, the borrower can enjoy the right to refinance when interest rates are lower or terms of the new loan are better than the original.

So what commercial properties are applicable to these various loans? Quite a large number of commercial properties use these loans. Few examples are apartments, shopping centers,raw land, malls, warehouses, car dealerships, office buildings, day cares, convenient stores, facilities, theaters, health care facilities, motels, churches, gas stations, casinos medical buildings, subdivisions, golf courses and a lot more.