Plan New Business Ventures Through Commercial Construction Loan Word Count: 484 Summary: Commercial construction loan is the biggest way of financing your business plans. This loan is generally given to entrepreneurs, who wish to construct new buildings for commercial purposes, renovate premises, and buy business sites or commercial buildings. Read the article to learn more about commercial construction loan. Keywords: Commercial construction loan, Secured Loan, Bad Credit Commercial Loan, Commercial Secured Loan Article Body: Construction is one of the most daunting aspects of business. It involves huge capital investment. An entrepreneur is not always sufficient with money to carry out construction and other renovations in his office. Your problem of scarcity of funds will become obsolete, if you opt for a commercial construction loan. Commercial construction loan is the biggest way of financing your business plans. This loan is generally given to entrepreneurs, who wish to construct new buildings for commercial purposes, renovate premises, and buy business sites or commercial buildings. Commercial construction loan can be secured as well as unsecured. Secured commercial construction loan requires you to place collateral. These are also called as commercial mortgage. These loans are provided at better terms, rate of interest and flexible repayment schedules. Unsecured commercial construction loans do not require collateral. The rate of interest charged on a commercial construction loan is either fixed or variable. An entrepreneur is always advised to choose a fixed rate as it helps them in efficient business planning and budgeting because they know how much they have to pay every month. With a variable rate there can be fluctuations. It can increase during the term, as a result you will be required to pay more. Before providing you a commercial construction loan the lender will give a look at your income and existing debts. He will also consider certain other factors like-: • Collateral placed • Credit score • Repayment ability • Reason for taking the loan • Business investments • Length of ownership of the company • Number of partners, employees etc. Besides the above mentioned factors the loan provider would require the borrower to present a few documents before him. The loan application must be in the form of a request. It must consist of the amount to be drawn from the loan, purpose of taking the loan, amount of working capital in hand etc. Commercial construction loan when used for purchasing real estate, constructing new commercial buildings or renovating premises would require the borrower to give the business profile to the lender. Accurate information about present debt balances, payment modes, date of maturity and the collateral used(if any) to secured other loans is to be provided. The lender may also ask you submit preliminary environmental reports, property appraisals etc. If the entrepreneur is to start up a new business, the business plan is vital. It should include details on cash flow projections for first 24 months. The information must be to the point. The business plan must also provide information on how it would be helpful for the entrepreneur to repay the loan. Shop around the financial market before applying for a commercial construction loan. Do not forget to consider the option of online loan providers. Searching for a lender online will help you secure an appropriate and hassle-free loan deal. Business is uncertain. Estimate high, spend less and you can bring in new innovations in your business.