Obtaining a commercial business loan is a bit harder than other types of real estate, because there is more risk to the lender involved. If your business doesn’t do well, you aren’t the only one who potentially stands to lose a lot. But it’s certainly not impossible – and it’s even not that hard when you have your finances straight, a clear plan and vision, and a clean business and personal credit history. You may be wondering at what Lender are looking at when you apply for a commercial business loan. While this list is not all-inclusive, as there are many types of lenders and businesses out there, it is a good initial guide to get you thinking about what you may want to pay attention to, or in some cases, get fixed. Also remember that one lender says “no” to, another may say “yes” to – it is very individual and depends on characteristics about the Lending company itself. However, these three aspects are things that are dependent upon you, the borrower.
Three Aspects Lenders Consider When You Apply For A Commercial Business Loan
- Business Finances
- Personal Finances
- Property Characteristics
Any business you have had in the past, including the current one, if you are just seeking to upgrade the structure your business resides in, will be scrutinized through a credit check process. This means things like interest rates, payback period, any late or missed payments – all will apply. It’s important to remember that one or two business mishaps from the past don’t necessarily destroy your chances of securing a loan. Lenders are looking at the entire picture, not just one aspect. There’s always risk involved, and they understand that.
Your personal finances come into play here, so it’s important to get your person credit squared away. Do you have any repossessions or bankruptcy history on your credit report? If so, it’s probably best to hire an attorney that specializes in credit clean up that can help you sort these matters out. It won’t be cheap, but definitely worth it, if your dream is to own a commercial property. On the other hand, if you just have been late on a payment or two in the past, you might be pleasantly surprised to find out it didn’t hurt your score terribly. Be sure to keep an eye on your credit through all reporting agencies and check it often, even if you haven’t had a lot of transactions. The reason to do this is so you can catch fraud and mistakes. It’s estimated about one third of Americans have a mistake on their credit report, and many don’t even know. These mistakes can greatly affect your score, and they can be correctly, but you need to be aware of your score.
The final and arguably most import characteristic that lenders consider is the actual commercial property. Where is it? Is it in good shape, or does it need a major overhaul? The fact that it needs fixed up won’t instantly disqualify you, but if it’s in a high-crime part of town that is prone to natural disasters, is going to be a service that could be an environmental hazard (such as a gas station) – a lender may give pause. It’s smart to only tackle a business that has one risk factor or none (location, type of business, part of the country.) Unless you’re able to put a significant amount of money as down payment, most lenders shy away from high-stakes loans. Instead, consider something smaller but in a better location with less crime, etc. There are always ways to achieve your dream – get creative, and do your homework.
In the meantime, check out these 1-click searches:
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Newest Key West Commercial Properties on the Market
![2710 Roosevelt Blvd Boulevard N KEY WEST, Florida Prime Restaurant/Bar location for lease in Key West. Seller is motivated and will consider all serious offers. Very visible endcap location in Overseas Market. 6,000 sf. interior available and includes all Furniture, Fixtures and Equipment. Licensed for over 200 Seats. Includes an SRX/COP liquor license and a large full service bar inside with bar seating and tables. Comfortable Indoor AC dining and outdoor patio seating available. A ton of parking surrounds the restaurant. Perfect location for a major national Restaurant and Bar or other Retail uses are possible. Favorable, long term 20 yr. lease in place, started in Feb. 2017 with approx. 14 yr. balance. Landlord Approval required for any Lease assignment. Current Denny's franchise is optional and would require Denny's application and approval. Denny's opened in Key West back in 1996 at another location by current franchisee. Overseas Market just went through major improvements. Current tenants in Overseas Market include Winn Dixie, Ross, CVS, Five Guys, Domino's, Advanced Auto, US Post Office, Jersey Mike's and other retail and office tenants.](https://cdn.photos.sparkplatform.com/flk/20240524160808514044000000-o.jpg)
2710 Roosevelt Blvd Boulevard N KEY WEST, Florida
2 Baths 6,000 SqFt
![295 51St Street Gulf MARATHON, Florida Exceptional 6-unit multi-family commercial property conveniently accessible from both 51st Street and 50th Street. This property offers unparalleled convenience and charm in the heart of Marathon. Comprised of three buildings surrounding a serene courtyard oasis complete with a sparkling pool, tiki bar, and grill. Boasting a total of five efficiencies and a separate two-bedroom, two-bathroom unit, making it an investor's dream. Each unit has undergone extensive remodeling, featuring tile floors, impact windows, AC systems, state-of-the-art appliances, cabinets, and quartz countertops. Ample off-street parking for over eight vehicles. Zoned MU Commercial with six TBRs (Building Rights), this property offers versatile opportunities for investors, whether for short-term rentals, long-term leasing, or commercial endeavors.CA/NDA and proof of funds or bank pre-approval is required.](https://cdn.photos.sparkplatform.com/flk/20240408235334380252000000-o.jpg)
295 51St Street Gulf MARATHON, Florida
7 Beds 7 Baths 2,614 SqFt
![243 61St Street Gulf Street MARATHON, Florida A rare and unique income producing Hotel in Marathon. Tropical Cottages is a boutique & very profitable Mom and Pop Motel. Total of 11 valuable Transient Licenses, 13 Rooms plus office with kitchen & check in room. There are 9 buildings on the property, 8 adorable free standing cottages and the main building with 3 rooms. Each room has been tastefully and tropically renovated inside and out. Each room is unique and comes fully furnished. Most of the units have small kitchenettes including sink with microwave and refrigerator. All units have refrigerator & microwave. Each of the cottages have shiny new Victorian shingle roofs. Additionally, there is a large Tiki Hut & Bar along with Food Truck with seating area. The Food Truck is leased for $5,000 per mos. and the Tiki Bar operations are owner operated. Both add to income and a great amenity for the guests. On site is a full laundry room with Commercial grade washers/dryers and storage rooms throughout. All housekeeping is done on site. Small but friendly efficient staff has been there long term and willing to stay on with new owners. There are a total of 6 lots encompassing over 1/2 acre of land, total .56 Ac or 24,384 sf. There is ample off street parking for guests. Zoning is GC and land use is recognized as Hotel/Motel. Bonus of Deeded waterfront access at the end of 61st St. which has a boat ramp and staging area for all types of watercrafts and sports. Same family ownership since 2010. Tropical Cottages was started back in the mid 1950's as a Fish camp and is one of the few remaining Mom & Pop Motels throughout the Florida Keys. Priced at just over 7% cap rate. Motel generates substantial Net income year after year to current owners. Sellers may consider Seller Financing to a qualified buyer and must have 40%-50% or more down payment. Terms to be negotiated.](https://cdn.photos.sparkplatform.com/flk/20240306215504991065000000-o.jpg)
243 61St Street Gulf Street MARATHON, Florida
13 Beds 14 Baths 4,461 SqFt
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