Tag: prepayment penalties

In the wake of the financial crisis, alternative lenders popped up everywhere to fill the funding gap for small businesses. Today they continue to provide valuable financing options for many fledgling and growing companies, especially when traditional bank loans are still hard to come by. While alternative small business loans can be life-saving for some firms, it is important that entrepreneurs go into them having done their due diligence. That means having fully researched at least the following […]

You have a small business loan with a high interest rate. Your firm does better than expected and you have the money to pay it off early. While an early-payoff may seem like a no-brainer at first glance, there may actually be some good reasons NOT to finish off that loan as soon as possible. Increased APR Unlike most car loans and mortgages, many small business loans do not fully amortize. With an amortizing loan, the principal and interest are both spread out over the term of the loan, with […]

Some people get commercial mortgages to buy their own business space. Others get them to invest in real estate. Whatever the reason, there are at least 6 essential terms that commercial mortgage borrowers need to be familiar with before signing on the dotted line. 1. Amortization Commercial loans are amortized, meaning that the principal and interest required are spread out together over the life of the loan. That means every payment includes both principal and interest. Yet commercial loans […]