Friday, December 04, 2020
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The Commercial Loan – Financing Opportunity for the Self-Employed

Anyone who needs the appropriate space to exercise a trade can resort to a so-called trade loan. This form of credit is mainly used if you want to buy a commercial property and want to realize this project with financing.

Commercial loans are tailored specifically to the borrower to ensure that he can make the full repayment and is not late in paying due to high installments.

Personal loans and commercial loans

Personal loans and commercial loans

These are due to the fact that a trader usually requires larger premises and therefore more financial resources than a private borrower.

The following points differ between private and commercial loans:

  • in the case of a commercial loan, the loan amount is significantly higher
  • The term of the loan is usually longer than that of a personal loan
  • The structure of the loan is designed so that the monthly costs are as low as possible

It is important for the borrower to make a detailed and well-thought-out calculation for the use of commercial loans. This prevents him from being able to bear the costs at some point and from getting into payment difficulties. Ideally, you should seek advice from an independent financial expert. Of course, you can also involve the customer advisor at his lending bank and work out a calculation together with him.

  • Of course, the bank advisor can only count on numbers that are given to him. The borrower must therefore first provide the basic facts and figures himself. B. Sales forecasts, price calculations and other income and expenses. They then form the basis for calculating the possible and above all sensible loan amount.

Loan types for use:

  1. short-term loans (e.g. working capital loans, current account loans)
  2. long-term loan (purchase of real estate for commercial use)

Before you apply for such a commercial loan, you should consider what the funds will be used for. Buying commercial real estate is certainly associated with greater financial and time expenditure than the purchase of vehicles or machines.

Offers conditions

Offers conditions

Such a comparison can be made on finance or comparison portals. If you enter the desired loan amount and term as well as the purpose of use in the search mask, you will get a list of results, in which potential providers are listed including their most important conditions (amount of the monthly rate, annual debit interest and effective interest).

In a personal consultation with a customer advisor, you can then clarify the details of the financing and determine whether a commercial loan for commercially used real estate is feasible with this provider.

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