Many commercial property owners find the need to expand their operations to new levels. For this reason, they may need the help of a certified construction management company in finding the best refinancing options for their current building for expansions, renovations, or company expenses with better terms and conditions.
Various retail and other commercial property owners can benefit from different commercial lending solutions to complete their projects, including restaurants, storefronts, storage lots, warehouses, office buildings, and more.
Common Commercial Construction Loan Types
There are various kinds of commercial construction loans available for a variety of purposes, including:
- Land development loans to make raw land construction-ready
- Land acquisition and development loans to improve land quality for construction
- Short-term loans from commercial banks to settle substantial construction loans on specific projects
- Some construction loan lenders require availing takeout loans for financing construction projects before granting a short-term construction loan
- Interim construction loans that help to pay for materials and labor
- Crowdfunding where a group of small investors provide funds for particular projects, which is a good option for small projects
How Can I Qualify For A Commercial Construction Loan?
Construction loans are generally considered high-risk loans. For businesses having little to no existing cash flow, there are stringent requirements project owners need to meet to get their hands on these loans.
The following are some of the top conditions most lenders want applicants to meet:
- Strong credit history for small businesses
- Detailed building plans, expense estimates, and construction contracts
- Providing a downpayment of a certain percentage of the total loan cost
- Providing financial documents such as proof of assets, tax returns, and financial statements to verify current or previous loan history
- Receiving a preferable appraisal from a certified commercial construction project appraiser
- Having a good reputation as a business operator in the market
BelVan Construction offers expert commercial contracting services, including general contracting, construction management, project financing recommendations, and more throughout Alberta, Saskatchewan, and BC. Visit our website to know more about our services or contact us for personalized service.