Refinancing A Commercial Loan

Are you a small business owner or do you currently own a commercial property, and interested in obtaining a more favorable rate or term on your mortgage? One refinance option, known as a commercial loan refinance can help a borrower help save money and increase your property’s equity. If you are located in West Palm Beach, St. Pierce, or Tampa Bay, Florida, and want to better understand the available loan refinancing options for your business, CTC Mortgage can help. Read on to learn more about a commercial loan refinance.

Understanding How A Commercial Loan Works

A commercial loan is intended to help a business afford business costs, including property, funding payroll to pay employees, buying equipment and supplies, as well as other maintenance costs. Office buildings, rental properties, retail stores, warehouses, and industrial buildings are the kinds of properties that are most commonly associated with commercial loans. The rates and terms of commercial loans vary, but they typically last between ten and twenty-five years, and can be refinanced. When a borrower applies for a commercial loan, a lender will examine the amount of incoming cash and the business revenue, in addition to the property’s value. This loan type will also require the owner of the business to use the business property itself as collateral so that the lender is protected if the borrower cannot make the loan payments.

The Advantages Of Refinancing A Commercial Loan

There are many benefits to refinancing a commercial loan, with one of the most important advantages being that business owners that refinance have the opportunity to save money with lower interest rates and longer loan terms. By extending the term of a commercial loan, the monthly mortgage payments will decrease significantly. A commercial loan is usually designed for the borrower to have lower payments during the loan term, and pay the remaining loan balance in full when it is due with a larger payment, which can be financially straining for a business. A commercial loan refinance can alleviate this by helping avoid having to pay the large remaining payment at the end of the mortgage. Another benefit of refinancing a commercial loan is that, if a borrower chooses a cash-out refinance, the resulting additional funds can be used to make renovations to the property, which will likely add value to the company.

How To Qualify For A Commercial Loan Refinance

Although some requirements for a commercial loan refinance will vary, most will require the following qualifications:

● The credit report of the business

● A term that ranges between 10 to 25 years

● The lender will need to review the available collateral of the property

● The borrower must have owned the business for at least a year

If you are interested in a refinancing a commercial loan in West Palm Beach, St. Pierce, or Tampa Bay, Florida, contact CTC Mortgage today for a consultation.

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