Office building loans are loans that are aimed at making the dreams of most business people a reality. Using the loan, small and medium businesses, and their owners are able to receive financing.
The owners of the businesses can use the finances to remodel, construct new offices, or even buy new offices. Other than the loan helping the business people to construct and buy new offices, the loans can also be used to purchase new equipment, hiring new staff, and much more.
Features of the Office Building Loans
- The loans have a long repayment period—usually 15-30 years.
- The loans give you several repayment options where you can use either the variable or the fixed rate. Although, the fixed rate is more popular, the variable rate usually keeps the payments lower.
- You can choose to repay the whole amount once or you repay the loan in installments. When you repay the whole amount once, you save on the interest that you would have spent over the life of the loan.
- Another feature of office building loans is that you will receive financing of your loan within 30-90 days after your application.
- You can also use your property to access a commercial loan where most lenders will give you a 60%-75% loan to-value ratio.
- You need to make a down payment of at least 30% of the cost of the office.
- Most of the lenders will give a loan of up to $1
Qualifications of the Office Building Loans
- For you to qualify for the office building loans, the office that you want to construct, or buy must be located in at the middle of market sectors. If the office is located in the middle of small market sectors, the middle sectors must have strong sponsorship.
- You must provide clear description of the office that you want to buy or construct. You must provide representative color photographs of the office.
- You must proof that you are capable of repaying the loan. You can do this by giving your credit history to the lender for proof.
- You must provide an operating history for the last 3 years; you must provide information on how your business has been performing for the last 3 years. To qualify for the loan, you must have a proven track record.
Advantages of the Office Building Loans
- The most important advantage of office building loans is that they allow you to own an office fast; therefore, you will be repaying office building loans that you already own.
- By owning the office building loans it means that you will not be paying rent. Since the office is yours, you can rent the office to other people.
- Furthermore, you can use the newly acquired office as collateral for another loan.
Office Building Financing
If you are tired of paying office rent or your business is expanding and you need a larger office space, you should consider the office building loans. Although, the loans will put you into debt, you will have an exquisite office at the end of it all.