If you’re a business owner, you may have started small, but the goal was not to stay small forever. As your business grows, you may notice that you have increased needs for property, equipment, employees, etc. This is when one of the most popular types of financing for businesses comes in – a Commercial Loan.
A Commercial Loan is a form of lending in which you’re borrowing for the sake of a business. In many cases, a Commercial Loan is made to a business for the sake of acquiring real estate, construction and development, equipment, and other things to help your business continue to grow. Commercial loans are typically for $500,000 and over.
What is the difference between a Commercial Loan and other types of loans?
There are many different instances in which you would require commercial financing as opposed to another form of financing, but the main difference is the loan’s purpose.
For example, if you are looking to finance properties such as an office building, retail strip mall, or any other type of property that is $500,000 or larger and used for business purposes, a Commercial Real Estate Loan is the best option for you and your growing business.
Whereas, if you’re looking to purchase a home, vehicle, or anything else that is solely for personal use, a Home Loan or Consumer Loan would be a great fit for you.
Where can I get a Commercial Loan?
If you need a larger space for your growing business, you’re looking to build your portfolio of commercial investment properties, or you would just like to see what your commercial lending options are, Vibe Credit Union is here to help! We have a trusted Commercial Lending team that is ready to help you and your business needs! Get started today.