A commercial investment loan is a sum of money intended primarily for investment of business purposes and extended by a financial institution to its client. It must be paid back with a fixed interest amount within a certain period.
Whilst residential loans are provided to individuals, commercial loan services are available only for business needs. Commercial loans are typically available at higher interest rates, extended for longer periods and based on the backed-up asset’s projected net operating income.
Why You May Require a Commercial Loan
Applying for a commercial investment loan might be exactly what your business needs right now. Here are a few common reasons why people prefer this type of loan:
- Business expansions
If you want to expand your business frontiers, you will need funds. There are many ways to acquire funds, but commercial loans are one of the simplest and most readily available sources. Terms are reasonable and can be even better suited for you if your business has a good reputation and a well-thought-out plan for expansion. In addition, loan service providers will be ready to extend loans if your vision for the future is clearly drawn out and well within reach.
- Capital requirements
You may need to make some big capital purchases for your business, for which you may not have the funds currently. A commercial investment loan can help you gather enough money to buy heavy equipment, such as machinery and office computers, to keep your business running and growing. In addition, to stay up to date with the advancements in technology and your competition, you will need the latest equipment, and commercial investment loans can help you stay ahead of them.
- Credit scores
If your business is new, you may not have the reputation to apply for large loans. You can start by borrowing smaller sums to build a good credit score. Make sure to pay the loans back in time to have a good credit history because any defaults in payments will only worsen your situation. Applying for such small amounts can help you rack up points, and you can use these smaller funds for useful purposes to grow your business.
- Property investment
The most common reason for using commercial loan services is to purchase property for business purposes. As businesses grow, they will require greater space to conduct their operations. You may need a larger go-down to stock up greater inventory, more office space for your employees or a larger factory to produce more goods. Since real estate is quite expensive, a commercial investment loan is your best bet. If you play your cards right, you can get a good deal on your loan, significantly boosting your business growth.
Do You Really Need a Broker?
Although commercial investment loans can be taken directly from banks and other lenders, hiring the services of a broker will make the process much simpler and smoother for you. A broker can break down all the formalities and jargon and give you expert advice on what loans to go for. The importance of a broker can be briefly understood here:
- Expert knowledge
Finance brokers specialise in commercial loans and know how to get you the best interest rates. They can help through the application process for you without any hiccups. They’ve done this stuff many times, so they know exactly what to do and how to do it.
A broker can handle all your paperwork for you, allowing you to focus on growing your business instead of getting bogged down with formalities. They not only save you time but also money. They can advise on getting better interest rates, reducing your interest burden, etc.
- Greater connections
Customers who do not choose brokers only consider two or three lenders for their loan process. As a result, they are unaware of the plethora of options out there. However, brokers know the market inside and out and can connect you with lenders you may not have even heard about.
Brokers can show you where to get the best loans. They work for you, meaning that your best interests are always considered. With a good broker, you wouldn’t need to worry about getting a sleazy deal.
- Flexible timings
Unlike banks or lending institutions with fixed hours that may not work for your needs, brokers can usually adjust their hours according to your convenience. So, instead of you having to run after lenders to complete your loan application, brokers will get it done for you exactly when you need it. You can synchronise your availability with theirs, and they will be able to work around your schedule.
InvestorFi: Personalised Commercial Investment Loan Solutions for You
If you’ve been dreaming about getting a property for your investment requirements, a commercial investment loan is what you need.
InvestorFi can help you fulfill that dream. We tailor our commercial loan services to match your needs and ensure that your loan process goes smoothly. We ensure that you face no problems, whether you are applying for the loan or already own the property. Our many years of experience in this industry make us the perfect choice for you.
For more details about our services, contact us today.