There are many benefits in choosing a business loan, some of which are listed below. K., I’m not making light of the fact that banks are at the mercies of both federal and state regulatory agencies, but for the most part, they play a vital role in ensuring the market efficiency of their service areas from both a consumer and commercial standpoint.
Conventional business loans are given to business entities that have great banking relationships, established business credit history with trade lines with other businesses they do business with and good standing with various credit reporting entities like Dun & Bradstreet.
Commercial Construction Bridge Loans: This is a type of construction loan meant for the purpose of providing temporary finance for a new construction, or for making improvements on an already existing structure, in order to enhance the available cash flow from the property.
There are many businesses who would never qualify for a traditional bank loan, regardless of how badly they need it or want it. If their credit scores are low, or if they are unable to provide the collateral the banks require their applications will be rejected.
Is the business willing to repay the loan based on how it or its owner have repaid debts in the past (credit report) and can it repay; meaning does it have the cash flow (inside the business) to make the monthly payments and will this cash flow continue over the life of the loan.