A-Commercial-Land-Loan-Allows-Businesses-To-Purcha69

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A-Commercial-Land-Loan-Allows-Businesses-To-Purcha69

  1. 1. A commercial land loan allows businesses to purchase land, buildings, or other property. Like a home mortgage, a commercial land loan uses the propertybeing bought as collateral against the loan. Unlike the process for home mortgages though, approvals for land loans are based on the property you�re interested in buying. You�ll need a solid business plan and careful evaluation of the land to receive funding.loandirectorysg
  2. 2. When buying a new property for your business, location is essentialFind a real estate agent that knows the area as well as the businesspotential He/She should help you evaluate foot and vehicle traffic,zoning regulations, and any previous uses and their success orfailure You�ll need to convince your lender that your new propertywill make money
  3. 3. Detailed financial plans, reports, balance sheets, tax documents andsales records will be required to show the overall health andsustainability of your business A new property will mean a newbusiness plan, tailored to what you plan to accomplish once youmove Prepare a detailed analysis of the costs and income youexpect in your new space and be sure to include the costs of staffing,maintenance and loans on the new property as well as a contingencyplan for any challenges you may face
  4. 4. There are many lending sources available, but it�s important tochoose one that will work for you and is reputable in your communityThis is an essential step in getting into the right commercial land loan Look for well established lenders and ask for references from otherbusinesses that have used them
  5. 5. loandirectorysg The best lenders will give you advice on what tolook for in a property to ensure a lending source that you�vethought out your choices and are well informed They may also guideyou thorough the process of gather information needed to apply foryour loan It can be almost impossible to receive a commercialproperty loan as a new business
  6. 6. In most cases, owners need to plan on renting space for a coupleyears to establish credit before delving into the world of ownershipRaw land loans are also available through the Small BusinessAdministration (SBA) They will guarantee up to $750,000 to enablesmall businesses to get approved without large amounts of collateral
  7. 7. They may also suggest you work on a 1-3-5 program: Find onesmall bank loan, 3 business credit cards and 5 vendor lines of creditThis can establish the legitimacy of your business and put you on thepath to commercial land ownership in no time
  8. 8. loandirectorysg

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