Leveraging The Benefits Of A Conventional Loan For Your Business

Many entrepreneurs assume that the most critical time for a business loan is when first launching their companies. However, small business owners may need fast access to funding for a myriad of reasons that extend far beyond startup expenses. Growing the team, expanding service offerings, purchasing or leasing new equipment, and updating the facility are just a few situations where business owners need access to capital beyond their existing accounts to promote corporate growth and expand their current market reach.

When It Makes Sense To Pursue A Conventional Loan

If you’re looking to use a loan to infuse capital into your business operations, you may want to consider a conventional model. Conventional commercial loans are a viable lending option that offers entrepreneurs an alternative to the various Small Business Administration (SBA) programs offered through the U.S. government. Yes, for some entrepreneurs, a U.S. Small Business Administration loan offers a better lending fit for their specific borrowing needs. However, there are a multitude of reasons to consider a conventional loan for your business, particularly if you’re using the money to purchase commercial real estate. A conventional lending solution often proves a sound strategy for buyers investing in any of the following property types:
  • Mixed Use
  • Office/Condo
  • Warehouse
  • Light Industrial
  • Medical / Dental

Conventional Loans Provide Fixed Rate Business Funding

Conventional loans can yield other several potentially significant advantages. One major benefit of this lending strategy is the fixed rate options made available to business owners. Standard fixed rate options are typically offered with a 3, 5, 7, and 25-year repayment plan for loan amounts between $500,000 and $20,000,000. Fixed rate plans allow executives to pinpoint the right loan duration for their needs as well as plan and budget for a consistent payment each month.

Additionally, conventional finance programs often offer more flexible final terms. Banks and other lending institutions are often willing to work with business owners to outline a loan solution customized to meet the financial needs of the organization. Term length, interest rates, and even prepayment penalties can sometimes be negotiated for long-term loan success.

Want to hear more about available conventional loan programs? Contact Avid Commercial today to discuss your commercial financing needs.

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