Whether your business requires working capital or needs to finance capital expenditure for purchasing machinery, equipment, or assets and looking for funds to raise your expenditures, C&I loans can help. These loans are used to finance the capital expenditure or expenditures for carrying out current operations to various industrial companies, retailers, or health care providers.
What are Commercial and Industrial loans?
C&I loans are short-term loans mainly for business organizations, companies, cooperative societies against individuals. An individual can qualify for this loan if he/ she will entirely use this loan for either commercial, industrial, or professional purposes. These loans are required to be paid off within one to two years.
All loans are not included under commercial and industrial loans; loans secured by real estate are excluded from this category. These loans are backed by collateral, and the lenders don’t look for the business’s creditworthiness. The amount of the loan is the subject value of the property used as collateral.
These loans are used for various type of companies such as:
- Transportation companies
- Construction companies
- Manufacturing companies
- Medical properties like hospitals, nursing homes, clinics
- Cooperative societies
- Communication companies
- Professional firms
Different types of C&I loans
Secured and unsecured C&I Loans: Unsecured loans depend on the capability of the borrower to pay or the borrower’s creditworthiness. At the same time, secured loans depend on the property kept as collateral. Therefore, the amount of the loan depends on the net value of the property.
Asset-based loans: These are short-term loans based on stock or accounts receivable assets that can be used as collateral. The lender must make sure about the quality of the stock, like if they are damaged or become obsolete. Lenders always have a fixed percentage to reduce the valuation risk.
Equipment finance: Leasing is the best alternative way of business to buy equipment, vehicles, or other assets. The residual lease value may be low or even zero. The interest rates of these types of C&I loans are higher than other loans, but the monthly payment is lower.
How can you get C&I Loans?
C&I loans require documents and applications like financial statements, tax statements, or some lenders also ask for the sources and uses of funds. You can easily get a loan with lower interest rates if you have a property used as collateral. Lenders can sell the property used as collateral to refinance the loan. Inventory, account receivables, vehicles, equipment, or assets care potential sources of collateral. If you don’t have any property to use as collateral, don’t worry. Some lenders lend money based on personal assets you own.
Why choose Commercial Real Estate Loan Pros of Fort Myers?
Our company offers the best quality services in Fort Myers, Florida (FL), and we promise you to provide the best lenders in Lee County. Our financial consultants will help you with every requirement. We will help you to prepare your documents for easy approval. If you want loans with lower interest rates, quicker funding, and flexible terms and conditions, contact us.
There are so many areas or regions where we offer these services with most of them being cities.
However, if you need any of these services, you need to contact us. The list below comprises the areas where we offer these services.