Being a business owner can be exciting and rewarding. Whether you are just starting out and want to build office space or you need to expand or renovate your existing space, it’s going to require capital. Commercial loans can give you the money that you need to get your business in Georgia to the next level.
At Delancey Street, we offer creative financing to ensure that you’re able to move forward with your construction or renovation project.
Getting the Financial Help You Need
When it comes to building or renovating, you have to think about how much it’s going to cost. It won’t matter whether you’re in Atlanta, Augusta, or anywhere else in Georgia. However, there are Georgia new construction loans that can be obtained. This way, you have the thousands of dollars that you need to move forward.
There are a lot of expenses to deal with. Lenders can provide you with the money to cover land development, labor, materials, and more. It will make it easier for you to get started when you don’t have all of the money upfront.
It’s important to understand the different commercial loans that you can obtain.
New Construction Loans vs. Commercial Mortgage Loans
Georgia new construction loans can be the better option when you look at what lenders can offer. This is in comparison to commercial mortgage loans.
Commercial mortgages typically provide you with all of the money as a lump sum up front. You will, then, have 10 years, on average, to pay for it. If you have good credit and meet all of the lender requirements, you can get approved. However, commercial mortgages typically aren’t available for renovating and upgrading, only new construction.
New construction loans in Georgia provide you with more flexibility. You get the money in installments based on the next step in the construction process. For example, you draw the first amount when the land is developed. Then, you draw the next amount when you need the foundation poured.
You only pay interest on what you have actually borrowed at the moment, not the full amount. The benefit to this is that you’re not paying interest on property that isn’t complete.
Once the project is done, you have a choice. You can choose to pay the loan off in full, or you can choose to use the property as collateral and finance the loan.
The Loan Application Process
It’s important to understand the loan application process in terms of how you can get approved as well as what it will cost to get the loan.
Lenders may request a lot of information from you to get approved.
- Credit score
- Debit obligations
- Income statements
- Construction plans
New construction loans in Georgia will require a few different fees. This can include guarantee, processing, documentation, project review, and fund control fees. The cost of these fees will vary from lender to lender.
You will also want to look at a down payment. Most lenders won’t fund the full 100% of the project because it is considered a high-risk loan. The amount requested can vary from 10 to 30%.
Finally, you have to look at the interest rate. This has to be a consideration because of the time it will take to complete the project and how much it will increase your construction project in the end.
Ultimately, getting Georgia new construction loans can help you to get started on making your business bigger and better. At Delancey Street, we look forward to helping you every step of the way.