Guide to General Commercial Lenders

Contact general commercial lenders who provide the type of loan you need

Most general commercial lenders specialize in certain types of commercial loans. Among the most common: A purchase loan, in which the purchase you finance, such as a fleet of company cars, serves as collateral for the loan. A refinancing loan involves taking out a secured loan to replace your current loan, usually with the goal of lowering monthly payments. A short term bridge loan is taken out for a relatively brief period while longer-term financing is being arranged. A commercial second mortgage gives you a second loan of $50,000-$500,000 on your property, with a term of five to 10 years.

I recommend: The commercial lending firm GE Commercial Finance offers second lien loans that can be used for refinancing. Fort Ashford specializes in secured bridge loans for small and medium-sized businesses. CommercialDirect provides commercial second mortgages from $50,000-$500,000.

Double check general commercial lending loan term options

Terms for commercial loans vary. Make sure you can meet the terms before you sign on the dotted line. General commercial lending terms can include requirements that borrowers be in business for a minimum number of years. Advantageous terms to look for in commercial loans include no balloon payment, no penalty for early repayment and no collateral required (also called an unsecured loan).

I recommend: Offerings from Beehive Commercial Lending include 20- and 30-year loans with no balloon payment. Nationwide Unsecured features unsecured, “no-collateral” loans.

Too many general commercial lenders but too little time? A broker can help

Commercial lending brokers can help you find the lender for your needs. Brokers charge a fee, but it can pay off since many provide other services, such as advising you on how to increase your chances of getting a loan approved.

I recommend: If you want to refinance a mortgage, get free quotes from The-Best-Mortgage-Rate.com. Principle Commercial Corporation handles a slate of commercial loans, including bridge loans and purchase loans. FundingUniverse operates more like an online matchmaking service than a traditional general lending broker. You get help honing your business plan, then your plan is made available to FundingUniverse’s “invite-only” network of lenders and investors.