Best commercial loans

Best commercial loans

Are you planning to start your own business but lacking funds? Well commercial loans are the best solution to kick starts your business, either to buy lands, purchase machinery, taking building in lease, recruit new staff or may be any other business activities.

What is commercial loan?

Commercial loan is a type of loan which any individual, company, trust or any other organization can take to start business. To start business operations, buy instruments, buy commercial lands etc. Unlike other loans commercial comes with higher risk factors hence commercial loans comes with high interest rates.

Types of Commercial loans

Before taking any commercial loan, its very important to know which types of commercial loans are available in the market so that you can choose the best suitable one for you.

Overdraft facility

Overdraft facility is associated with your credit card. It’s a special feature given by the bank to the card holder. You can use this benefit to maintain your cash flow but you won’t be charged anything until & unless you use this facility.

Overdraft facility comes with interest rate of 5.07%-12.45% for secured commercial property. You can take $1000 minimum to $100 M maximum.

Unsecured loan

To explore new business opportunities, buying stocks or for business expansion you can take this loan. It comes with an interest rate of 2.97%-12.83% where the minimum loan amount $750-$100 M.

Secured loan

If you are planning to buy any land, building or any other tangible asset than this loan is for you. Secured loan is generally a long term loan facility. It comes with an interest rate of 2.97%-9.83% where the minimum amount is $250 to maximum $ 100 M.

Trade finance

Whenever you get a big deal or huge amount of supply, you always worry about the payment security. You can take various short term loans where bank comes as a guarantor where both the parties will feel secure about the payment.

Commercial loan providers

Let’s discuss few good options of lenders who provide commercial or business loan

Moula business loan

This finance company is giving loan with low interest rate as low as 0.61% per fortnight. You can apply for a business loan up to $500,000. Not only that this company claim to offer quick business loan as quick as 10 minutes to process after your loan is approved.

Prospa Business loan

If you are looking for long term loan than you can explore this company as they provide long term loans with a wide range of 3 years to 24 years term business loan. You can apply for $5000 to $300,000. Apart from that they give you option to pay back your loan amount much before the agreed duration of time.

Bromleigh small business loan

If you are looking for a small business loan up to $100,000 with no upfront charges, you can explore this option. This company claim to process the loan within 10 minutes & approve the same within 24 hours with an interest rate of 9.90% P.A.

Bluevine

If you are looking to maintain your cash flow or paying your vendors or suppliers than this is a good option for you. You can apply up to $250,000 with interest rate starts from 4.8%, where you can pay back from 26-52 weeks. Small companies with low credit score where you may fail to avail a traditional bank loan can apply for this.

On Deck

If you are maintaining a credit score of 600+ & a loan amount up to $500,000 can avail this. They provide comparably higher loan amount but with a higher interest rate starting from 9.99% P.A with 15-36 months repay time line.

Conclusion

There are few important factors that decide you will get the loan or not are.

1. Credit Score– The key point of getting a loan is your credit score. You need to maintain a good credit score to get a commercial loan. If your credit score is low, the lenders will hesitate to approve your loan.

Business Plan– Most of the business specially the start-ups face cash flow or face severe financial problem because they don’t have any proper executed business plan before start the business or taking loan. Hence it’s very important to have a well researched business plan before starting your business & before taking any kind of commercial loan.

Loan Comparison

Before taking any kind of commercial loan, it’s very important to compare the different kind of loans provided by the lenders. There are different lenders provide the same kind of loan with different interest rates & other repay options. Compare them & take a loan which suits according to your needs.

Find the best lender

If you have a small business, don’t go for big names as they may charge you higher than the small lenders in the market.

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