1. A commercial land loan allows businesses to
purchase land, buildings, or other property. Like
a home mortgage, a commercial land loan uses
the property being 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.
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2. When buying a new property for your business, location is essential Find
a real estate agent that knows the area as well as the business potential
He/She should help you evaluate foot and vehicle traffic, zoning
regulations, and any previous uses and their success or failure
3. You�ll need to convince your lender that your new property will make
money Detailed financial plans, reports, balance sheets, tax documents
and sales records will be required to show the overall health and
sustainability of your business A new property will mean a new business
plan, tailored to what you plan to accomplish once you move
4. Prepare a detailed analysis of the costs and income you expect in your
new space and be sure to include the costs of staffing, maintenance and
loans on the new property as well as a contingency plan for any
challenges you may face There are many lending sources available, but
it�s important to choose one that will work for you and is reputable in
your community This is an essential step in getting into the right
commercial land loan
5. Look for well established lenders and ask for references from other
businesses that have used them The best lenders will give you
http://loandirectorysg.com/ advice on what to look for in a property to
ensure a lending source that you�ve thought out your choices and are
well informed They may also guide you thorough the process of gather
information needed to apply for your loan
6. It can be almost impossible to receive a commercial property loan as a
new business In most cases, owners need to plan on renting space for a
couple years to establish credit before delving into the world of ownership
Raw land loans are also available through the Small Business
Administration (SBA)
7. They will guarantee up to $750,000 to enable small businesses to get
approved without large amounts of collateral They may also suggest you
work on a 1-3-5 program: Find one small bank loan, 3 business credit
cards and 5 vendor lines of credit
8. This can establish the legitimacy of your business and put you on the
path to commercial land ownership in no time
