When you’re taking on a big expense to expand your business, a bank loan can help you cover that expense up front and repay it later. There are many different types of commercial loans, including new construction loans in Buford, GA. Here is a quick guide to when you should apply for this type of loan.
Once You or Your Business Are Financially Stable
Before you can get any type of loan, including a commercial construction loan, you need to prove to the bank that you are financially stable and a sound investment for them. You will need to show that you have a good credit score, low debts, and enough income to repay the loan.
If you are taking out a new construction loan for your business, you will still have to prove that you, as the owner, have a history of financial responsibility. You will also need to provide information about your business to show that it is profitable. Usually, businesses need to be somewhat established before they can get loans.
When You Are Building a Building from Scratch
New construction loans in Buford, GA, are meant to cover the costs of building something from the ground up. Whether you are constructing a stick-built home or a new building for your business, this will repay the costs of construction. You cannot use a new construction loan to cover the costs of purchasing a building or renovating an existing structure.
Your lender will explain the terms of different loans to you and help you see if you are eligible for them.
