The mark of a good and profitable business is expansion. If people love your product or service, you’ll find that you don’t have enough space to meet demand. In this case, it’s a very good idea to either expand your current building, or to build a new, bigger one. Many successful businesses come across this at some point during their run. If you are going through this, you might want to consider looking into commercial construction loans to help you with the build.
The Benefits of Commercial Construction Loans
Sure, you could just use your own business’ money to fund the construction of your new building, but there are many risks involved with that option. What if something happens and you need that money for a different area of your company? Even if you are having great success, you still probably won’t have enough money on hand to fund the whole construction process, which can be at least $100,000. In this case, commercial construction loans are a good choice.
A commercial construction loan is great because it can take care of some or all of the cost of the building of your new addition or new structure. You won’t have to use any of your own money except for when you pay off the loan. This means that you will still be able to spend money on other aspects of your business, such as research and development.
How to Get Commercial Construction Loans
You should apply for one of these loans before you ever start planning your build. Often, people expect a much higher loan than they actually qualify for. This means that, if you already started building, you may find that you don’t have enough money to finish construction.
To get one of these loans, you’ll need to contact a bank or lender that has these loans in the first place. This can actually be difficult. While most banks offer other loans, like mortgage loans, most don’t deal with construction. You’ll have the most success with national banks and lenders when it comes to commercial construction loans. They will also often have a good variety of options for your company as well.
Before you apply for your loan, you should also make sure that the actual lending officer that you’re working with knows their stuff. The language and rules of commercial construction loans are very complicated. If you get someone who is new to the business, you may end up missing out on valuable information or options. Instead, try finding a lending officer that has a lot of experience with this kind of loan.