There are lots of ins and outs to commercial sales and the loans the accompany them. Golden State Escrow facilitates commercial escrow transactions. We have over 40 years of experience with this process. We ensure all agreements are carried out and funds are released upon completion. We coordinate with all parties to make sure the transaction is done efficiently and with a professional touch. Contact us to get started today!

What Are Commercial Loans and What Do Lenders Look For?

Commercial real estate loans allow a person to start a business or help an existing business set up a new property or expand an existing one. Depending on the lender, your access to this type of loan may be based on different factors. There are three aspects that lenders generally look at.

First, your business finances. Lenders typically need to look at your books to see if you have the cash flow to repay the loan. Your business credit score will be needed to see if your business qualifies and then determines your loan terms, such as your interest rate, payback period, and down payment requirement.

Second, your personal finances. Lenders will check your credit score. Foreclosures, defaults, tax liens, and court judgements are all considered. Low credit scores could jeopardize your chance at securing a commercial loan.

Lastly, the property characteristics are considered. The property becomes collateral, and the lender attaches a lien to the property. If you don’t make payments or fail to repay on time, they are allowed to seize the property. One aspect to remember is that your business must occupy 51% of the building. While we can’t help you secure a loan, Golden State escrow can facilitate the transactions and make sure all aspects are complete. With trust and professionalism, we’re experts at making sure these types of transactions go smoothly.