FAQ

Business plans, financial statements, tax returns, and sometimes collateral are commonly required.

Approval time varies but can range from a few days for simpler loans to several weeks for more complex ones.

It's challenging but possible, often requiring higher interest rates or additional collateral.

LTV is the ratio of the loan amount to the value of the property. It's calculated by dividing the loan amount by the property's appraised value.

LTC is the ratio of the loan amount to the total cost of the project. It helps lenders assess the risk associated with the loan.

It's more challenging for startups but possible with a strong business plan and financial projections.

Interest payments are often tax-deductible, but it's best to consult a tax advisor for specifics.

Refinancing is possible and can help you get better interest rates or terms.

Defaulting can lead to legal action and loss of collateral, affecting your credit score and business reputation.

Most commercial loans require collateral, but some types, like unsecured business loans, do not.

Fees can include origination fees, application fees, and sometimes prepayment penalties.

Criteria can include business age, credit score, revenue, and collateral. Specifics vary by lender.

SBA Loans, Conventional Loans, and Non-recourse Loans are common types.

Typically, you'll fill out an application and submit required documents like business plans, financial statements, and tax returns.

Rates vary but can be based on factors like credit score, loan type, and market conditions.

Terms can range from short-term (less than a year) to long-term (up to 25 years), depending on the loan type and lender.

Some loans have prepayment penalties, while others do not. Always check the loan agreement.