100 Percent Commerical Loans

Are you looking for a 100 percent financed commercial loan for your business? Let the team at First Bank help. Our wide network of lending agents provides loans to entrepreneurs, executives, and small business owners—and we can find a commercial loan that’s 100 percent financed to fit your needs.

How 100 Percent Commercial Mortgage Loans Work

While the experts at First Bank will walk you through every step of the process, it’s important for borrowers to understand the basics of 100 percent commercial loans. Similar to a residential mortgage loan that is 100 percent financed, a fully financed commercial loan does not require a down payment or upfront cash to secure the loan.

If your business is in need of a physical space but you don’t have the capital for it, a loan is a great solution. Here are three more factors to keep in mind as you consider borrowing:

1. 100 Percent Financed Loans Have Higher Interest Rates

The downside of no down payment is that the interest rate on the loan will typically be higher.

2. The Loan Is Secured

Most banks require some type of collateral to guarantee the loan. Common collateral often includes items such as property, vehicles, or other assets and could be forfeited if you default on the loan. In some cases, the collateral for the loan could even be the very property that is being financed.

3. Know Your Business Plan

Lenders offering 100 percent financed loans will expect the borrower to demonstrate a sound business plan when discussing commercial loans. 

Now that you have some background information, let’s find out what exactly is offered that fits your needs.

The SBA and the 7(a) Loan

The Small Business Administration (SBA) offers what is known as a 7(a) loan. It is designed for building, buying, or refinancing commercial properties. A borrower can find 100 percent financing on a 7(a) loan if he owns an established and cash-flowing business. If the borrower doesn’t qualify, there are still other good options out there.

Visit First Bank Today

Whether it’s a 100 percent financed loan or something else, First Bank can help you navigate your options and find what’s best for your business. Come see our loan experts at a branch near you.

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Sources:

Entrepreneur: https://www.entrepreneur.com/article/241079

Business KnowHow: businessknowhow.com/money/7aloan.htm

 


Loans Subject To Approval