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3 Reasons to Use a Commercial Building Loan Calculator

Running A Business 4 min read

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If you’re looking to build or to purchase a commercial building, it’s a great idea to start with a commercial building loan calculator. It can give you a sense of how much to borrow for the property you’re hoping to purchase, what your loan payments might look like each month, what amortization does to your loan, and whether the provider of the commercial building loan calculator might make a good financial partner.

First, let’s start with what a commercial building loan is. Much like a mortgage loan is used to purchase or refinance a home, a commercial building loan is used for an office space or piece of property that will be used or owned by a business. Commercial building loans (aka commercial mortgages) are typically funded by a bank or another type of financial institution and often require collateral. The collateral for your commercial building loan is usually the commercial property or real estate that your business wants to buy, build, or refinance.

As with most type of loans, the lending partner will take into account your creditworthiness and ask for documentation of your business (e.g. tax returns, bank statements, balance sheets, etc.). See what it takes to apply for a business loan.

Commercial Building Loan Calculator Benefit One: Get a Sense of Payment Amounts

By using a commercial building loan calculator, you can figure out how different interest rates impact your loan. Plus, you can adjust the term of the commercial building loan to see the amount the lender expects you to pay back each month and how long it might take you to pay off your loan.

The “term” of a commercial building loan is the time limit (in years) within which the loan must be repaid. Commercial building loans are offered in a variety of terms lengths.

Commercial Building Loan Calculator Benefit Two: What Does It Mean to Amortize

A commercial building loan calculator can also give you an idea of what different amortization does to your commercial mortgage. This is because amortization determines how much principal and interest you pay back each month on your commercial building loan.

Note that if the number of years you choose to amortize is longer than the term of your commercial building loan, this will result in a balloon payment(s). The balloon payment is typically a large lump sum wherein you pay back the last chunk of your loan. You’ll need to be prepared to pay that large lump sum, or discuss potential options with your commercial banker.

Commercial Building Loan Calculator Benefit Three: Use it to Find a Good Banking Partner

So you’ve been using the commercial building loan calculator, figuring out your payments and a potential amortization schedule, and you notice that the lender hosting the commercial mortgage calculator actually offers a lot of helpful business information.

This is a great way to identify and begin building a new relationship with a commercial lender, especially if that bank is in your local community. Partnering with a medium-sized bank, such as a community bank like First Bank, you’ll get the level of service, personalization, and flexibility that you aren’t likely to find at the other larger or smaller banks.

Plus, commercial mortgage lenders at community banks often have deep industry knowledge, provide unique insights into the local market, can get you a competitive rate with flexible terms, and explore all the options you might need to run and expand your business successfully.

Get Started with Your Commercial Building Loan

After you use our commercial building loan calculator, give us a call. You’ll be working with some of the best business lending experts around (First Bank was chosen as the Best-In-State Bank in North Carolina by Forbes for 2020). And with more than 100 locations across the Carolinas, there’s sure to be a branch with a commercial loan professional nearby to help you get started on your business building dream.

First Bank also offers a business credit card with rewards, payroll services, and Positive Pay, which helps your business prevent ACH and check fraud. There’s also a range of mobile capabilities from the First Bank app, to a mobile check deposit tool for your workforce, comprehensive Treasury Services, and more.

Loans subject to credit approval. Available loan terms are determined by loan type and bank policy and are subject to change at any time. You should discuss what loan terms are currently available with a local loan officer.

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