Financing for business and commercial real estate loan

Business loan – a two-sided knife
Financing for business is a risky issue for the commercial real estate loan vendors as well as for borrowers because of some agreement problems. Once if there exists any deadlock in the existing contract then it will rub all your easiness and happiness. Thus it creates lots of problems to both the sides. That’s why I have mentioned it as two – sided knife.

Commercial real estate loans are offered for many kinds of revenue generating properties like shopping complex, hotels and motels, apartments, automobile dealers, hospitals and health care institutions, school and educational institutions and so on. This is mainly for repaying the existing loan and vital for the development of companies.

There are two types of commercial real estate loans. They are
1. Long term Loan – continues to exist until the property’s life.
2. Short term Loan – continues to exist until the long term loan is obtained.

Bugs in commercial real estate
To err is human. The following are some of the common mistakes done by the business persons while dealing with commercial real estate loans.

Lack of research in options provided by the banks and by some money lenders.
Business strategic planning scarcity and lack of clear definitions of the plan.
Choose right lawyer.
Depending only upon the lender. Not investing own money.
Poor maintenance of balance sheet.