How to Get a Good Commercial Real Estate Loan Rate

Getting a commercial real estate loan is a big step for any business. It's important to get the lowest rate that you are able to find. After all, even just one percentage point could make a difference of thousands of dollars over the lifetime of your loan. You should learn the keys to securing a great commercial loan rate. Fortunately, there is a lot that is within your control.

Instructions

Difficulty: Moderately Challenging

1. Improve your credit score. Your business should have its own credit score, and that score needs to be high in order to secure a low commercial real estate loan rate. Always pay your bills on time and, if possible, borrow smaller amounts of money and repay on schedule to improve your score.
2. Prepare all of your financial documents. When you apply for a commercial loan, you must show your company's financial documents. These include the past three years' tax returns. If you have other documents that prove you're already turning a profit, show those too. Lenders want to know that you will be able to repay your loan, so if you can prove that your business is already making money, then you're more likely to get a lower rate.
3. Shop around for quotes rather than accepting the first offer you receive. There are many different companies that provide commercial real estate loans, from small local banks to large national corporations. When you compare the rates offered by several different companies, you can feel secure knowing you got the best deal.

Tips & Warnings

• If a commercial loan company rejects your proposal, ask them why. This will help you learn where you went wrong in your presentation. Use the information to improve your presentation and apply again with a different company.