Commercial Financing

Commercial Financing questions and answers

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Q: Is financing obtained from commercial banks better than the one obtained from the government?
As a fund manager of a small and medium sized company, i am considering to get extra financing but i don't know which is better. Does commercial banks offer better package, as in lower interest rates than those offered by the government schemes?

A: You cannot get a "government loan" unless you have been denied financing from at least 3 commercial banks. And there is no such thing as a government "loan", it is still a commercial loan just backed by the SBA Go to www.sba.gov for more details.

Q: How do I obtan commercial financing for a multi unit building I already own.?
I want to refinance the building so I can pay off debt that I acquired because I rehabed the apartments, and I would like to start my own business in one of the commercial units.

A: I am a Loan Specialist in San Diego, Ca. I work with Residential as well as Commercial Lenders. I can give you various quotes instead of the one option you will probably get with a bank. No worries & no obligation, I'll keep searching for a quote until you are happy! If you would like more information feel free to contact me. -Linda Munoz Loan Specialist Valley Financial Inc. www.lindamunoz.net

Q: How is qualifying figured for commercial financing on an office building? Rental income from the building?


A: Lending criteria for CRE: 1/ Loan to fair market value of collateral..basically, the bank should not be exposed in a liquidation scenario. Also type and condition of collateral 2/ Cash flow of the collateral if leased for rental income should suppourt debt service. Net cash flow should be at least 1.20x (some banks use 1.3x) of debt. Other factors they look at are term of leases, renewal rents, vacanacy rates and operating expenses. 3/ Experience of the management/borrower....relevance of this criteria depends on size of project.

Q: Do you need Commercial Equipment Financing for your company?
Willamette Financial Funding Services, LLC (Headquarters in Portland, Oregon) Willamette Financial is a “Commercial Equipment Finance Company” founded in 1986. We have financed over $475,000,000 worth of equipment with over 45,000 transactions in all fifty states. NEW or USED equipment, 100% financing, 100% write-off. Save your working capital for unexpected cash needs. Our financing also does not reflect on your credit report. In addition, we also offer commercial and residential real estate financing. Call Scott Benoit toll free at 800-777-5355 or send me an e-mail at sbenoit@willamette-financial.com www.willamette-financial.com - "A financial partner equipped to meet your needs..."

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Q: Where can I get Asset based financing to purchase commercial property?
Looking to get an apartment building but I don't have the money, credit or documentation, therefore I need something secured such as a asset based. I live in nyc and the property is there as well. No upfront fees. i can't afford any fees that the property can't cover.

A: According to the business news.. commercial property is going to be the next shoe to drop. Meaning financing for commercial property right now is probably next to null and void. Does this help any?

Q: Where can I get Commercial Real estate financing?
I need a hard money loan or a asset based loan. Lenders from the nyc area please. I don't want any other type of loan(conventional loan).

A: Have you talked to a banker? Banks lend for Commerical property as well. Any large bank should do.

Q: Is there anyone in the Dallas/Ft Worth area that Provides Commercial Financing for Gas Stations?
I am looking for something preferrably without having to provide a lot of information

A: I provide such loans. They actually can be difficult sometimes so go with a lender that has developed programs for such said reasons. I have many programs to help you accomplish your goals. Hopefully yahoo answers wont kick this answer out like some of my others. You are asking about a lender correct? Drop me an email and I can go over your scenario.

Q: When buying a commercial property - is it usually worse financing conditions than residential?
Hi, Also, is it usually the same mortgage broker doing both residential and commercial or will i most likely have to work with a different mortgage broker than the one dealt with my residential purchases? THANKS.

A: It is definitely worse financing. The theory is that people will stop paying every other bill before they stop paying the mortgage on the home they live in. The down payment is almost always 20% but can be 50%. The interest rate is at least 1/2% above residential rates. It is not unusual to have the loan due in 5,7,10 years. So it never fully amortizes. It will be a different loan broker..

Q: what are some financing options for buying commercial real estate?
I would love to buy a retail location for my biz but I would need 20% down... in my area it would be 40-60 thousand $$$ down... ouch! I currently lease. Are their any other options for me aside from taking on partners?????? Would building be an alternative, or would the same rules apply?

A: If you occupy 51% or more of the property you can get an SBA loan with 5% to 10% down or less.

Q: What are the steps towards acquiring and financing the land and the means to build a commercial building?
I am trying to acheive a dream: commercial space in a fun shaped building for children's needs: from development to entertainment. I know nothing and i have nothing but the dream. Will you help?

A: When my friend was looking to build a daycare center, she enlisted a Real Estate Agent first, to scout out both developed and undeveloped properties which might fit the bill. This Agent also worked with her on funding and financing options. If you are looking to design, the services of an Architect would be needed to create a pleasing, efficacious, and functional buidling, keeping in compliance with local standards. Good luck realizing your dream!

Q: What is the UK / EU equivalent of the Uniform Commercial Code and the UCC-1 financing statement?
Is there an equivalent? Does the whole world use the UCC? Or does only the USA use the UCC?

A: From what I can tell the UCC is only for the USA. The world does not operate on US law. I think you may be looking for something on UK legislation. Try the links below - but since I don't really know much about the UCC you will probably have to search for the relevant legislation on the UK government Office of Public Sector Information website (links below). The second link is for: The Sale and Supply of Goods to Consumers Regulations 2002. This seems to be similar to the idea of UCC at least as far as it relates to the sale and supply of goods.

Q: financing for commercial developments?
I am looking for a bank or other low interest lender to finance the acquisition and development of several commercial projects nationwide. Does anyone know of a bank that does these? I have found several, but each has their own box and region, so I can always use more suggestions. I am a broker myself, and I typically work with residential, hospitality, and gas station properties while doing several other types of financing on the side. This scenario is not necessarily typical, and thus I have exhausted my resources in trying to locate a lender. I have found plenty of private money lenders, but banks have much tighter guidelines, thus I am asking for any guidance as to which banks are known to do these. Particularly is CA, KS, AZ, ID and UT; however, I am working with a partner who prefers not to co-broker, so we are not ready to do so at this time. I am looking for bank references only. Thanks for the answers thus far though.

A: I originate residential and commercial loans at Blueprint Finacial Services in Roswell, GA. We are a broker, not a direct lender. We do however, facilitate the funding for many different types of commercial deals from, A&D, to rehab, hard money, bridge loans and many other financial products. -Tasha Griffin (678) 507-2000 It is quite rare for commercial brokers to give up their lenders if they are not getting a piece of the pie. I have yet to get a reference from another broker without points attached to it. Only thing I can suggest is to check out Scotsmans Guide for commercial lender and exhaust all of those options first. Good luck with your inquiry!

Q: Options for financing a $3 million commercial building?
My wife and I currently rent a building for our business. We've been in business for nearly two years and would like to begin exploring the option of buying. The landlord says the current FMV is $3 million but he tends to exaggerate so we may be able to get it for less. What are the best options given the fact that we need the longest term possible to keep the mortgage payment below our current rent payment.

A: You can start the process by getting an appraisal to give you some compts on the property. This will put you in the ball park as far as the FMV of the property. Normally the lender on a commercial property want about 15%-20% down though if your credit scores are really high I have seen them require a little less. Contact a commercial lender to find out the fees and other cost that might be incurred in the purchase. Contact your tax consultant for his/her input. The other thing what type of legal umbrella are you working now, an LLC or corp, non-profit? Is it strong enough to purchase without personal guarantees from you or will you have to personally guarantee the commercial loan. If the corp have enough in the bank and can prove sufficient income, then you probably will not need to personally guarantee the loan. Make sure you fill out the loan application in the name of the corporation. Normally commercial loans are amortized or 30 years but are called and due in10 or 15 years. I hope this has been of some use to you,good luck. "FIGHT ON"

Q: Were can I find a company or mortgage broker that can find or finance small Commercial and Multi Family loans?
I am currently in the market to buy a five unit multi-family property listed at $180,000. Because it is considered a commercial property I’m having a hard time finding a lender that does commercial loans under $500,000. I should be able to put 20% down by drawing equity out of another propriety so I don’t foresee there being a problem financing it. I would appreciate any suggestions.

A: I do this type of loan. Please email with some of the detail at JohnG@oldmerchants.com

Q: Determine Walters's annual financing cost of this commercial paper financing. (PLEASE HELP)?
Walters Manufacturing Company has been approached by a commercial paper dealer offering to sell an issue of commercial paper for the firm. The dealer indicates that Walters could sell a $5 million issue maturing in 182 days at an interest rate of 6% per annum (deducted in advance). The fee to the dealer for selling the issue would be $8,000. Determine Walter's annual financing cost of this commercial paper financing. Can someone please show me how to figure this; I would greatly appreciate it. THANKS!!!!

A: 1. interest=5 milyun $*6%*(0.5 yeer)=3%* 5 mil=150,000$ add in the 8,000$ fee 2. sumwon mite get pikky & sae 182 daes/365=0.49863 yeer. 3. wot cha meen bi "annual financing kost"? just triing tu muddy the water? tri tu impli him roll over the debt so gotta pae interest for 1 yeer?