When considering commercial loan options for your business from Commercial Lending Corporation, you need to determine how much the loan costs. For example, if you need a $100,000 commercial real estate loan, in addition to the $100,000, you will also pay interest on the loan. The interest rate you receive does depend upon several factors, such as your credit report, credit score and credit risk. Even though you are securing the loan using commercial property, if you have a low credit score or derogatory credit report, you may be considered a higher credit risk, which would result in a higher interest rate. In order to determine the amount you pay for the loan, you need to review the proposed repayment schedule that shows you the amount of interest incurred over the life of the loan, added to the $100,000 principal.
In the event you are considered a higher credit risk, there are things you can do to offset the amount you pay for your commercial real estate loan from Commercial Lending Corporation. You could review the amortization table and schedule, which is a breakdown of the amount of interest and principal applied to each regular monthly payment. Most loans have the option of paying additional money towards the principal, as long as your payments are current. By making additional principal payments, you are able to reduce the amount of interest paid back over the life of the loan. Another option is to work on improving your credit score and credit history. Once you have raised your credit score, you could always refinance your existing loan to secure a lower interest rate.
Tagged: Commercial Lending Corporation