Commercial Construction Financing
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Commercial construction financing is something every construction contractor needs to meet all the construction expenses. However, with traditional institutions such as banks, availing this kind of funding is quite hard. It’s the reason construction contractors opt for private lenders.
However, if you don’t have a reliable commercial loan consultant, you might end up paying high interest rates. This is where our financial consultants come into the picture. Commercial Real Estate Loan Pros of Orlando is a reliable commercial loan consulting company. We’ll help you find the best private lender who meets all your requirements. Call now to know to book our services and read along to know more.
What is Commercial Construction Financing?
Commercial construction financing is a flexible loan. It is used to finance the costs related to the construction or renovation of a commercial building, i.e., paying for labor, buying materials for the construction, buying land for constructing a commercial building, or renovations of existing properties. It might sometimes take a lot of time and struggle to achieve because of the risks involved, but our experts can help you to manage this quite well.
How Commercial Construction Financing Works?
Commercial construction financing is not like other loans. It is different, as most loans are structured, so the borrower receives the full amount of the loan as one lump sum. But in commercial construction financing loans, the full amount of the loan is not received until service is done. Instead, the payment comes in installments as the project hits the new milestones.
On the whole, a commercial construction loan is structured, so the borrower pays only the interest until the loan payment has been fully handed out. Borrowers can then clear the principal amount in one lump sum at the end of the construction project.
What are the Basic Requirements for Availing Commercial Construction Financing?
All commercial construction projects are not eligible for commercial construction financing. There are several factors from which the eligibility is decided. They are as follows: –
- Credit Score: Commercial construct loans are high-risk loans. Therefore, lenders want to work with low-risk borrowers with high credit scores. Business credit scores will also be evaluated.
- Debt-to-Income ratio: The lender will also consider your debt-to-income ratio, also known as DTI. This shows the relation between the income and debt of your business on a monthly basis. Therefore, the lower your DTI, the higher your chances for approval.
- Debt Service Coverage Ratio: Debt service coverage ratio or DSCR will also decide your eligibility for commercial construction financing. The DSCR is different from DTI as the DSCR number has to be higher. It shows that your business is bringing in enough income to cover new debts. DSCR requirements vary from lender to lender.
How can we help?
If you’re in Orange County, you would know the complications involved in obtaining commercial construction financing. But Commercial Real Estate Loan Pros of Orlando will provide you the best solution to all your commercial financing needs. Here are the benefits of choosing us:
- Approval and funding are quick
- The collateral required is less
- Flexible terms and conditions
- In your favor
- Transparent Nature
- No hassle of maintaining a good credit score
- Defeat Competitors
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With Commercial Real Estate Loan Pros of Orlando, you’ll be aware of the interest rates, fees, cost, or any additional expenses right from the beginning. This way, you won’t feel like you’re being cheated. So, contact our financial experts now, discuss the project details for efficient solutions and quick funding.
There are so many areas or regions where we offer these services with most of them being cities.
However, if you need any of these services, you need to contact us. The list below comprises the areas where we offer these services.