|
||
Getting a construction loan for a new facilityIf your business is contemplating opening a new facility, one of the first things you will need to do is get a construction loan. A construction loan will not only help pay for the costs of the materials and labor, but also such things as land acquisition, building construction or improvements, all fees and permits associated with building, appraisal, title work, searches, surveys, machinery and equipment, and even furniture and fixtures. Construction loans for a business are a little harder to obtain than residential construction loans. Certain banks prefer specific types of property for lending money, and the terms for construction loans are generally much shorter than with a mortgage.
In addition, business construction loans take much more into consideration than just credit history - factors such as the industry of your company, how profitable it is, how long you've owned the company, and your experience with business or entrepreneurship will be some of the deciding factors as well. Before applying for a construction loan for a new facility, you may want to keep the following in mind: - Know the terms. There are a number of things to take into consideration when going for a loan. You might be getting a great interest rate, but will the loan end once construction is done, requiring you to apply for another mortgage for the completed facility. Some things you will want your loan to cover include long-term financing once the construction project is finished, so you won't have to apply for a bridge loan, as well as making sure there is just one set of closing costs and just one lender. Getting a construction loan for a new facility can be a lengthy process, but by being prepared, you will increase your odds of obtaining one.
,
|
||
Copyright 2003-2020 by BusinessKnowledgeSource.com - All Rights Reserved
Privacy Policy, Terms of Use |