Commercial Development Loans
Construction loans provide for the disbursement of loan proceeds at specified intervals over a defined period of time to cover the cost of developing and/or constructing real estate. Commercial real estatate construction loans can be either owner-occupied or non-owner occupied, and represent various types of properties such as office buildings, retail centers, manufacturing facilities, or multi-family housing. Generally, construction loans:
- are self-liquidating, i.e., office condominium construction with at-risk purchase contracts, etc.
- have internal refinancing provisions with the Bank:, i.e., a mini-perm loans or have external take-out commitments from a life company or conduit forward commitments.
Especially in the retail environment, marketing and advertising costs are a necessary expense of doing business. Commercial development is a vital part of the retail industry and can boost foot traffic and consumer awareness of the brand and the company presence, making it a solid investment for many retail concerns. In order to achieve the highest degree of success in the competitive marketplace, retail stores and other commercial entities can obtain commercial development loans designed to help them position the company favorably in their chosen industry. The right marketing campaign can make a major impact on sales and can even provide the impetus for expansion and growth in the chosen industry. Finding the right commercial development lending solutions is one key to that degree of success.
Commercial development lenders consider a number of factors when making a decision regarding a loan application. One of the most important of these factors is the ability of the company to repay. Projection figures for the expected increase in sales and current financials are required as part of the application process. Additionally, retail concerns will be required to provide information on the past three years of operations in order to establish a baseline for the company's overall performance. The commercial development lender will also take into account the retail establishment's credit rating and past credit history. Finally, any company assets will be weighed against the existing debt to determine a precise level of risk for the commercial development investment.
CNF Exchange can help retail establishments find an array of commercial development loans and lending solutions through the innovative CNF Exchange online interface. By using these funds to invest in future growth, companies can help to ensure their continued success and financial position in the competitive retail and commercial marketplace. This can allow greater exposure and can produce increased revenue streams for the ongoing operations of these retail establishments.