Any time you are presented with multiple loan offers from Commercial Lending Corporation, you have to evaluate each one. While your experienced loan consultant will cover the differences between each program, it is still your decision to determine which loan you want to obtain. By taking the time to become a little more knowledgeable about certain loan terms, you are able to make more informed decisions.
The first thing you need to look at is the loan to value ratio (LTV) offered with the program. If you are looking to raise a large amount of money, with very little out-of-pocket costs, programs with higher LTVs are more ideal. The next item you should look at is the interest rate, and whether it is fixed or adjustable. The higher the interest rate, the more money you end up paying back to the lender over the course of the loan. Fixed rates are always preferred, over adjustable rates. Adjustable rate loans may include a fixed rate period, but once they end, your payments could increase on a regular basis and make it more difficult to meet your monthly commitment.
Another thing to look at in any loan offers received through Commercial Lending Corporation is the type of loan. Some lenders underwrite recourse loans, while others provide non-recourse loans. These terms have to do with the amount of liability you have to the lender in the event you default on the loan. Non-recourse loans limit the lender to only seek the assets used as collateral to obtain the loan, while recourse programs give the lender access to go after other assets of the company to fully satisfy your loan obligation.