Commercial Loans
A commercial loan is where money is lent from a financial institution or private lender (such as BRRR Loans) to a business, usually for a predetermined use. They can be taken out for a wide variety of reasons, including business start-ups, the purchase of commercial property, and funding capital expenditures.
There are two types of commercial loans: secured and unsecured. The latter is based purely on creditworthiness.
These are most usually offered by banks and have rigid regulations as to who is and isn’t eligible. They also require definitive proof of turnover and profit, with the need to submit tax returns and other verification.
A secured loan—also known as a hard money loan—requires collateral. This might be in the form of existing business property or equipment, through a mortgage-like arrangement, liquid funds, or another kind of equity.
Commercial loans can be short, mid, or long-term, depending on the type taken out and what the money is to be used for.
How Commercial Loans Work
Commercial loans are tailored toward individual business needs. If it’s for the purchase of a property, for example, then this is likely to extend over a longer term. A shorter-term loan might be to finance inventory or perhaps to pay extra staff taken on for seasonal needs.
While it’s common to use physical assets as collateral, we can sometimes use company accounts and liquid assets in the same way. BRRR Loans range of commercial lending is always backed with crystal clear terms and conditions. This makes it simple for your business to easily budget for the whole term of the repayment.
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Buy, Rehab, Rent, Refinance, & Repeat. A nationwide direct lender to real estate investors. If you have a project that needs to be funded, you’ve come to the right place.