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Archive for February, 2011

A loan is a kind of lending product that an individual requires from a fiscal organization in order to fulfill his / her economic needs. In return, the user is liable to pay interest along with the total amount that he / she obtained in the form of loan. There are various kinds of loans offered to people depending upon their needs. Commercial loans are one kind of these financial products.

A commercial loan, just like the name suggests, is given to a person to fulfill his / her commercial requirements. The commercial requirements may be to fulfill an order, send a consignment, purchasing raw material or new machinery and the like.

Therefore, the main reason for getting a business loan is very different from other financial products in the way that it is intended to generate income. The funds received through commercial loan can be used for manufacturing or producing or for any other business needs. The amount offered in this kind of loan is usually larger than any personal loan.

Features of Commercial Loans

Just like it has been mentioned earlier, people take commercial loans to produce income Big business houses take commercial loans from banks to fulfill their production needs, or to complete a tender or for some other requirement of the company. The most common purposes of commercial loans include:

Commercial loans are not considered for the purpose of domestic consumption.
Banks offer commercial loans only to the business class men and women.
Banks provide these loans for professional purposes at an interest rate that is lower in comparison to other types of loans.
The time given to the borrower to repay the loan is usually lesser than other loans.
The amount of money offered in commercial mortgages is always higher in comparison to other private loans.

Therefore, it can be said that commercial loans are the cheapest kind of lending product in the financial market as compared to any other borrowing product.

Requirements for Getting Commercial lending products

There are some specific requirements for getting a commercial loan approved from a financial institution. These are:

You have to clearly define your investment plans to the financial institution for which you are requesting the loan. You will have to get your material, goods or machinery insured by a reputed insurance company in order to ensure the repayment of loans amount to the lender in the event of an accident, fire or any other mishap. You will also have to present the details of the company you are dealing with, and the way in which you will use the loan amount, as well as any other information that the lending company might require.

Maintaining the accounts of the company is also essential, particular before and after having the loan sanctioned to you. Doing all the above mentioned steps is essential to have a commercial loan sanctioned.

To wrap up, draw the benefits of commercial loans in meeting your business needs and paying back in easy installments.

YSP Loans is a division of Griffin Capital Funding; we are a secondary market lender specializing in owner occupied and partially owner occupied commercial real estate loans from 0,000 to ,500,000. We do not generally charge points or origination fees on our commercial mortgage products.

We offer the following commercial mortgage types:

Conventional commercial mortgages to 75% loan to value. SBA Loans to 90% loan to value. B&I loans to 90% loan to value (,000,000 maximum under this program)

We also partner with life insurance companies to provide loans on investment properties for loan amounts from ,000,000 to ,000,000.

We offer six different commercial loan products:

Full Document Commercial Loans – 85% is the maximum we will lend; this is made up of a 75% first trust commercial loan and up to a 10% second trust commercial loan. Our minimum credit score is 660 however we do not allow any prior history of BK on our Full Document commercial loan product. Loan amounts from 0,000 to ,000,000 Stated Income Commercial Loans 80% is the maximum we will lend; we do not offer second trusts on this product. Our minimum credit score is 650 and no BK in the past 7 years is allowed. Loan amounts from 0,000 to ,000,000 Commercial Bridge Loans 70% is the maximum we lend; second trusts are permitted but we do not offer them. There are no minimum credit score requirements. The commercial bridge loan is offered from mm to mm in most metropolitan areas. General purpose commercial properties are allowed with a special interest in income producing properties. SBA 504 Commercial Loans 90% is the maximum combined loan to value between our commercial loan and the SBA debenture. No minimum set credit score. Loan amounts from 0,000 to ,500,000. B&I Commercial Loans 90% is the maximum we will lend. No minimum set credit score. Loan amounts from mm to ,000,000. Non Profit Loans 80% first trust commercial loans and up to 100% CLTV with a second trust.