Commercial Loan Financing
Getting preapproved has never been easier.
Estimated Factor Rate
See if you qualify for your commercial business loan.
We value the overall health of your business, not just your credit score.
This helps us work out the most benefitial options for you, regardless of your business history.
Time in Business
We evaluate how long you’ve been in business and repayment history.
We look at your annual revenue and review your daily balances.
Don’t worry, your credit score or defaults won’t be the deciding factor
What is a commercial business loan?
commercial loans can help take your business to the next level. They can provide your operations and capital with major growth. It’s important to understand the terms of how they work and how they impact your business each step of the way.
Similar to a traditional loan, a commercial loan is a lump sum payment with a scheduled repayment period. Being that it’s a condensed version of a loan, you’ll be able to pay it off much quicker.
How to use our commercial loan payment calculator
It’s always important to do your research when finding the right loan for your business. It’s important to consider the best financing options, interest rates, and term agreements.
When applying for a commercial loan, there’s a few factors you’ll need to consider and add them up. They include:
- Loan Amount
- Loan Term
- Interest Rates
To calculate your monthly or weekly payments and the total cost over the life of your loan:
- First, enter the desired loan amount
- Next, estimate what your interest rate
- Choose a loan term that fits your payoff structure
- Determine your payment frequency. Keep in mind that commercial loans are riskier than traditional loans.
- Finally, input all the factors and calculate what your impact of your repayment schedule will be.
Understanding your results
The calculated results give results for a weekly or monthly payment, cost of loan, and total repayment.
When calculating your results for your commercial loan, you’ll be receiving a breakdown consisting of a total loan amount, monthly payment, and repayment amount.
Here’s what the numbers tell you:
- Total cost of loan: The amount of which you’ll pay your lender back with interest and fees. To get this number, you’ll subtract the original balance of the loan from the repayment total.
- Monthly payment: The installments you’ll pay on a monthly basis. To figure out how you’ll pay each month, create a spreadsheet in a program like Excel. From there you can calculate the interest and principal as well.
- Repayment Amount: this total cost tells you how much you’ll be paying your lender back by the end of your loan term.
Total Repayment Amount – Loan Amount = Cost of Loan
With this information, it’s easy to evaluate different loan options—whether you’re comparing lenders or choosing between a 12- or 18-month term.
Whether it’s a 12-or-18-month term, we break down the differences in your options to insure you that you’re receiving the best deal possible.
Our commercial loan calculator will provide you with the accurate cost of your finances. Borrowers worry about being able to make their repayments on time. Repayment is important but it’s only one piece of the puzzle.
Working Out the Costs
After you’ve played around with the commercial mortgage calculator and examined the numbers, you might be worried about the costs of financing your commercial real estate purchase. While a lender’s fees can be preset and impossible to work around, there are some ways you can lower how much you’ll pay in interest.
Paying Principal Down
This step is significant with most financial options
Pros and cons of commercial loan financing
Once you learn how to calculate the interest of a commercial loan, you can begin to determine your financing options. commercial financing has it’s pros and cons. It can be paid off more quickly than the average loan but has its risks.
Quick access to funds
It requires little to no paperwork and you can access funds the same day!
You don’t have to be in business for two years or have an excellent credit score to qualify.
Capital at low cost
Interest rates are higher with short-term loans but interest is accumulated over a shorter time period.
Higher interest rates
Most short-term loans start at 10% but can go much higher depending on the prominence of the business.
These payments are usually weekly or monthly.
High interest with the frequency of payments could be problematic down the line.
- Whether you have set numbers or are unsure of where to begin, we recommend you try out different scenarios with factor rates, terms and advance amounts. This can help you determine what you can and can’t afford: solidifying the right plan for you.
Comparing and evaluating commercial business loan offers
If you have more than one loan offer on the table, comparing each loan’s terms can make it easier to decide the best option for you.
Here are some tips to help you decide which offer is best for you:
Consider how much each lender is offering you. Look over APRs and lower rates.
Look into the repayment term options. Pick a timeframe that works best for you and your business. Think about the specifics.
Most importantly, make sure your business is in the financial position to take out a commercial business loan. Set yourself for future success.
How to qualify for a commercial business loan
Accessing funding for your business is now easier than ever. With online technology, funders can now easily underwrite a business with minimal paperwork and documentation required.
Here’s what you’ll need to qualify:
- 3+ months in business
- $110K+ annual revenue
- 550+ credit score
Got some questions?
Commercial loan financing is an arrangement between a business and a financial institution (a lender or a bank), commercial loan financing funds major capital to companies looking for direct access to funds.
These loans usually require collateral upfront and are considered short-term loans.
Unlike traditional loans, the full amount of commercial loans aren’t received up front. When coming upon your term agreements, your lender will create a schedule for when you can access your funds at certain times.
You will only pay interest on the funds that you receive, not the loan in its entirety.
A commercial loan can open doors for your business that never thought possible.
These loans can be used for equipment, real estate, and inventory purchases.
Partnering with NYTG for commercial loan financing can help your business sore to new heights. We want to ensure that you’re getting the best for your worth.
A helpful tip: research your options to find the best one for you. In addition, have a solid blueprint of how you plan to use the commercial loan for your business. It’ll make things easier in the long run.
Different lenders mean different qualifications. At New York Tribeca Group, we prefer that your business be in good standing. A healthier business gives you a better success rate.
Having a good credit score is a major key but it won’t be the make it or break it factor for your application.
A helpful tip: have a game plan ready to execute. It makes things easier for your business down the line.
We’ll provide you with the right information and best results possible.