Commercial property loan is considered to be a finance used for purchasing commercial property meant to carry out business. It can even be to make investments and profit in the future. However, to apply for such loans, you are expected to make at least 25% down payment and show good credit standing. You also need to know where to seek such loans.

Why apply for commercial property loan?

Commercial property finance is often associated with commercial real estate investment. Such loans are also used for other purposes. They are created to finance property improvement or purchase and serve own business. To seek such loans, you are expected to use most of the purchased property to conduct own business. You may consider leasing a part of it.

Where commercial property loan is considered appropriate?

Finance for commercial property is deemed appropriate for the following instances:

Relocating or expanding retail space in your store.

Purchasing office building to establish your business.

Renovating, building or purchasing a hotel that you plan to operate yourself.

Purchasing warehouse to store your business inventory.

Types

Doing some research will allow you to come across diverse property investment opportunities in South Africa. Each option offered comes with its own application process, eligibility requirements, terms and rates. Hence, before applying, determine the type of loan that will suit your plans and needs. Get to know your available options.

Select a good lender to seek commercial property loan

With so many lenders and loans to choose from, choosing the best one among the lot can be a tricky one. You need to conduct thorough research to make a well-informed decision. Try to identify a lender who can provide your desired loan type, the rates you will be able to afford and meet their qualification requirements.

What to consider when selecting a lender?

Origination fees charged

Loan options offered

Documentations to be submitted

Minimum Interest rates offered

Prepayment penalties, if any

Time-in business requirements

Quick customer compliant resolution

Better ratings with BBB (Better Business Bureau)

Bad credit or fast funding options if desired

Personal guarantee requirements if needed

What else should you consider?

There are several aspects that need to be taken into proper consideration while selecting the lender. Besides the loan type desired, do evaluate fees, rates, user ratings and qualification requirements. Matching these aspects will mean you can go ahead with your commercial property development plan without facing any hassle. Also, you can establish your business well and/or make good profits from such investments.

Loan requirements

When commercial property loan is concerned, lenders prefer businesses that have the ability to cover its loan payments in a timely manner. Hence, the requirements to secure commercial party loan are security, your income and credit standing.