Commercial Property Finance and Commercial Loans

So you’re starting your new business – or expanding an existing one – and are ready to buy that prime piece of commercial real estate that you believe meets the all important “location, location, location” part of any successful business venture. You’ve drawn up your business plan and all of your supporting documentation, have a pretty good idea what sort of revenue levels you can expect over the next several years, and are finally at the point where you feel comfortable talking to your lender about the necessary financing options. If you’re at that point in the process, here are a few last minute things to consider before you begin your final financing negotiations.

The Right Location

Review your decision to be certain that the commercial property you have chosen is really the best one for your business needs. Commercial loans for real estate are similar to home mortgages in one key respect: once you’ve signed the loan documents and purchase the property, moving to a different location is no easy task. And if you haven’t even selected the final property yet, don’t even bother talking to your lender. Since the overall process can take as long as two or three months to complete, no lender worth his or her salt will be willing to invest any amount of time pursuing financing for an as yet undisclosed or undecided upon property.

Locating the Lender

This is one of the hardest decisions you will have to make. To make this part of the process easier, you should always seek out financing from several lenders at once, rather than trying to rely upon one single lender. One of the easiest ways to do this is to use a financing broker who will have access to offers from a variety of lending institutions. In that way, you can pursue multiple avenues of financing simultaneously rather than wasting your valuable time with one lender at a time – which may or may not be the right lender for your business needs.

Lawyers Can be Essential

Even if you have an aversion to lawyers – or simply to paying for their services – there is no arguing with the fact that they can be integral parts of a smoothly orchestrated financing process. Unless you are one who understands the minutia of legal terminology, you will want a lawyer to represent your interests at both the financing and closing stages of your purchase. Never forget the old legal axiom that states that the person who represents himself has a fool for a client!

Remember the Little Things

At every stage of the purchasing process, attention to the details can save you from wasting your hard-earned money and other mistakes. Simple things like providing all of the proper documentation can simplify the financing process for both you and your lender, and help to ensure that your loan request is given as much favorable consideration as it merits. At every point in the process, be sure to consult with your attorney if you have even the slightest confusion over how the proceedings are faring.