Tag: balloon payment

You may be familiar with the structure of residential mortgages, but how do they compare to commercial mortgages

Many business owners take on commercial mortgage loans in order to buy their own work facilities and real estate. In some cases, these commercial mortgages will have a balloon payment attached to them – a lump sum payment to repay the balance of the loan after three, five or ten years. Coming up with a chunk of cash that large is virtually impossible for most businesses, but there are several options to make these loans work. Balloon payments are a way for lenders to reduce their risk and recoup […]

Commercial mortgages and residential home loans are both loans taken out on properties and they both use the property itself as collateral. What makes them different from each other? As a business owner, what do you need to know about making a commercial mortgage agreement? Borrowers While residential mortgages are usually between banks and individual buyers, a commercial mortgage is made to a company or business. An individual could sign on to a commercial loan but since the property is zoned […]

Once you secure your funding, it’s time to decide what loan terms are best for your company. There are at least four different types of commercial loans to consider.