What is Commercial Business Loan?
Commercial loans are generally short-term financing that businesses use to cover unexpected operating expenses and capital costs.
At the beginning of a company, when you are offered an opportunity for growth there are many opportunities that require capital.
A business also has several expenses. In all of these situations the business loan could be a great alternative to meet your costs.
Below are the eligibility criteria for Commercial Loans The following are the eligibility criteria for Commercial Loan
- Startups are required to present income projections for the coming five years.
- Businesses is not a good idea to be listed in an area or territory that is hostile to the business.
- Non-Governmental Organizations, Trusts, Co-operative Societies as well as Charitable Organizations are not eligible to receive a Commercial Loan
Who can be ineligible for commercial loans?
They are eligible for commercial loan, like either a private or public limited company or partnership firm, sole-proprietorship and limited liability partnership
Documents needed to be submitted with loan applications
The required documents for commercial loans differ between lending institutions one another. However, the most common documents needed by lenders are listed below:
ID Evidence (As as per the terms of the lender):
- Driving licence
- Pan Card
- ID of the voter
- Aadhar Card
- Ration card
- Telephone bill
- Electricity bill
Business Proof (as relevant):
- VAT and GST Statement
- Balance sheet
- Tax return on income for a certain time
- Statement of Profit and Loss
- Statement from the bank
- A certified Copy of Partnership Agreement
- Sole Proprietorship Statement
- Board resolution
Processing costs and charges
Common processing costs include amortization fees and check swapping fees, contingency fees, check bouncing fee late payment fees, the stamp duty fee for prepayment and so on. Processing fees are contingent upon the policies of the lender.
Commercial Loan Interest Rates
The loans offered today depend on rules that are based on the Marginal Cost Based Lending rate, and is adjusted at intervals in accordance with the rate of economic growth.
The interest rates for commercial business loans can vary based according to the risk evaluation made by the lending institution as well as other terms and conditions imposed by the lender institution.
There are loan contract costs as well as legal fees, late payment charges, and other fees that are part of the loan contract.
What Do ‘Truerate Services‘ Offer?
Truerate Services is famous for providing “Commercial Real Estate Services’ for businesses such as commercial loans and Investments in Real Estate companies.
Commercial loans are a form of finance that permits a business to take out loans against future sales. In other words, instead of paying interest each month the borrower repays the principal (the initial amount that was borrowed) and any interest that may have accrued.
Commercial Loan Truerate Services offers the following services to corporations –
- Acquisition Financing
- Refinance Loans
- Mezzanine Loans
- Bridge Loans
- Fannie Mae Loans
- Freddie Mac Loans
- FHA / HUD Loans
- CMBS Loans
- Multifamily Loans
- Industrial Loans
- Hotel Loans
- Office Loans
What’s The Difference Between A Commercial Bank And A Commercial Lender?
There are two major distinctions between a bank and the lender in the field of commercial lending. First, banks typically lend money on the basis of collateral, whereas lenders don’t require collateral. In addition, banks have more interest rates over lenders.
What Kind Of Loans Can You Apply For?
If you are looking to borrow money for business reasons Then you’ll likely need to apply for a loan through an institution. Truerate provides a variety of corporate loans which are partnered with Real Estate businesses.
For examples – Refinance Loans, Mezzanine Loans, Bridge Loans, Fannie Mae Loans, Freddie Mac Loans, FHA / HUD, Loans, CMBS Loans, Multifamily Loans, Industrial Loans, Hotel Loans, Office Loans an so on.
What Is It Going to cost to get a Commercial loan through Truerate service?
A commercial loan or borrowing through Truerate services is usually cheaper than borrowing from relatives and friends however, it does come with the same dangers.
How Long Will It Take To Process My Application? | Commercial Loan Truerate Services
If you take money from a relative or friend member, you’ll likely get a response within a week. However, if you are borrowing money from banks or other lending institution like Truerate, it could be anywhere from a few days to a few weeks to receive a response.