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Commercial loan programs, NEXA Mortgage, AXEN Mortgage
Next week, @MortgageSensei Nelson Thompson, President of Lending Network, Inc. is going to announce the roll out of the commercial lending programs Lending Network LLC. Nelson Thompson will be launching and finalize our commercial lending platform with NEXA Mortgage and AXEN Mortgage. The merger with NEXA/AXEN and Lending Network LLC will be a game changer for NEXA Mortgage loan officers and for recruiting nee loan officers. Stay tuned. For more information please click Lending Network, https://www.lendingnetwork.org/
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This discussion was modified 5 months ago by
Gustan.
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This discussion was modified 5 months ago by
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Commercial loan programs are designed to meet businesses’ diverse needs, offering various financing options. Here’s a comprehensive overview of the most common commercial loan programs:
Traditional Commercial Loans
Overview: Banks and financial institutions provide these loans for various business purposes, including expansion, equipment purchase, and real estate acquisition.
Terms: Typically have fixed or variable interest rates and repayment periods ranging from 5 to 20 years.
Requirements: Good credit score, solid business plan, and collateral.
Small Business Administration (SBA) Loans
SBA 7(a) Loan:
Purpose: Used for working capital, expansion, equipment purchase, or real estate.
Amount: Up to $5 million.
Terms: Up to 25 years for real estate and 10 years for equipment or working capital.
Benefits: Lower down payments and longer repayment terms.
SBA 504 Loan:
Purpose: Primarily for purchasing fixed assets like real estate or equipment.
Amount: Up to $5.5 million.
Terms: 10 to 20 years.
Benefits: Fixed interest rates, long terms, and lower down payments.
SBA Microloan:
Purpose: For small businesses and certain non-profit childcare centers.
Amount: Up to $50,000.
Terms: Up to 6 years.
Benefits: Smaller loan amounts, ideal for startups and micro-businesses.
Commercial Real Estate Loans
Overview: Used to purchase, refinance, or develop commercial properties.
Terms: Typically 5 to 20 years with fixed or variable interest rates.
Requirements: Good credit score, significant down payment (usually 20% or more), and a thorough appraisal process.
Equipment Financing
Overview: Loans or leases used to purchase business equipment.
Terms: Typically 3 to 7 years.
Requirements: Equipment itself often serves as collateral.
Benefits: Preserves cash flow and provides tax benefits.
Business Lines of Credit
Overview: Revolving credit lines that provide flexible access to funds for working capital needs.
Terms: Typically renewed annually.
Requirements: Good credit score and established business history.
Benefits: Pay interest only on the amount borrowed, flexible repayment terms.
Invoice Financing
Overview: Loans secured by outstanding invoices, providing immediate cash flow based on receivables.
Terms: Short-term financing, typically up to 90 days.
Requirements: Quality of invoices and creditworthiness of the business’s customers.
Benefits: Quick access to funds, helps manage cash flow.
Merchant Cash Advances
Overview: Advances against future credit card sales, providing a lump sum of cash upfront.
Terms: Repayment through a percentage of daily credit card sales.
Requirements: Steady volume of credit card sales.
Benefits: Quick approval and funding, flexible repayment based on sales.
Selecting the right commercial loan program depends on your business needs, credit profile, and financial goals. Each type of loan offers different advantages and requirements, so it’s crucial to evaluate which option best suits your situation. Consulting with financial advisors and lenders can provide further personalized guidance.
For more detailed information and application processes, visit Lending Network: https://www.lendingnetwork.org/
