With the economy on an upswing, a commercial construction loan can help companies who find themselves needing to expand to meet the needs of a sudden business boom. There are lots of options available for everyone from the small fledgling start-up to the established business.
Commercial construction financing is designed to help you expand or build a business that will generate greater profit. They can be used to purchase land, equipment, or for general improvements and to cover the any related commercial construction costs. Here are some tips for finding the construction loan that’s right for you.
First, be prepared to shoulder some of the cost of your commercial construction project yourself. Because of the recent recession, many lenders will ask that the developer put up as much as 45% of the total cost of the project. Private investors may be needed to raise additional capital for the project.
Next, consider using a local bank for your commercial loan. Commercial construction loans require strict monitoring and regular inspections by loan officers to assess project progress. Local banks are far more willing to lend money for local community projects for this reason.
Now, decide on the type of loan you will need. Commercial banks should be your first choice when seeking to secure a commercial construction loan. Construction loans generally have a short term. Additionally, your best chance of getting a loan is to match the size of the loan you are requesting to the size of the bank. Small loans of $1 M or $2M should be requested of small or medium-sized banks, and so on. Either way, if a commercial lender doesn’t approve you, then and only then should you pursue other lending options such as sub-prime lenders ,portfolio lenders, and other private or hard-money lenders.
If you are ready to expand or improve your business, DeHart Construction can help. Our Cold Storage construction team is reliable and professional, with years of experience in commercial construction. Our team of commercial construction experts includes accountants, engineers, and other principals whose job it is to see to your needs and your company’s success.
We analyze every aspect of your business, determining what your needs are and developing a plan to meet them. We run complete projections and analysis to ensure that your commercial construction project is time and cost efficient, and leaves room for your future needs, as well. We even provide resources to help you secure the financing you need quickly. Our goal is to develop long-term, lasting relationships with you and every aspect of your business.
If you are ready to expand, build, or renovate, please contact a member of our commercial construction team today. From commercial construction loans to finished product, our project team is ready to assist you. Contact DeHart Construction today at (909) 335-0148 to get started.