In commercial construction, getting a structure renovated requires having an experienced commercial contractor at the helm. That helps ensure that the project is handled in a professional and efficient manner, with a close eye being kept on the budget for such work. The amount of money for such work can be a healthy sum and almost always is obtained through a loan for commercial renovations.
Where to Go
Obtaining this type of loan isn’t always the easiest thing to do, so knowing the best ways to go about this task can be valuable information for those seeking a loan. Most of these will be obtained through banks within the specific community or through regional lenders. The main reason for this is because of their awareness of this segment of the commercial construction market.
Using someone as your contractor that has an established name will often play an important role in the lender’s overall assessment. That’s because a recognizable name bolsters the confidence of that lender by offering the type of reassurance they need to put their money on the line. This contractor can often provide a host of references that provide solid evidence of the work being performed in an efficient manner.
It always helps to have access to a variety of potential lenders, considering there may be a chance that your first choice may choose to deny your loan. Not having a backup plan will have you scrambling to come up with a quick alternative. That can end up delaying a project and will likely add more money to your overall renovation costs, since the interest rate that you’re charged may end up being higher than what is in your budget.
The lending institution will look at information provided by the company asking for the loan. This will give them a strong indication of just how financially viable they are, which is a quick way of figuring out whether they can pay the loan back.
One of the likely ways that a lender will determine if a particular loan should be given is to give it a quick determination with respect to the profit margin for a project. Generally, 20 percent is the minimum number that will aid in the final decision that’s made. This is something where the choice of a contractor can be vital to getting a loan, since that profit margin can rise when a trusted contractor is on the job.
Since this is a construction-based loan for commercial renovations, that commercial contractor should have the type of track record to handle this type of work. Once the contractor has been checked out, the business asking for the loan will be asked to sign a commitment letter. This provides a great deal of information about the loan and should be checked out by your attorney due to the level of detail involved. Another important reason for being so scrupulous is that this agreement is legally binding.
A Commercial Contractor You Can Trust
Obtaining a loan for commercial renovations doesn’t have to be a burdensome task that has you crossing your fingers in the hopes that the loan will be approved. That’s because Stovall Construction has more than four decades worth of commercial construction experience and is licensed to operate in 15 different states. Having a solid reputation within this field is important to use, so make sure to contact us for your next project.