The moment you make a search for commercial loans, you will be amazed by the various types of commercial loans that would be available for you. As a first-timer, it is natural that you are quite perplexed by this diversity, however a little bit insight will show that it is not so difficult to apply for a commercial loan. The best approach is restraint. In other words, do not be beleaguered by the variety…instead, use the present value of money concept to zero down on a particular commercial loan. In this way, you can reduce the interest rates and all applicable fees to a common value by discounting them to the present.



Some other prevalent factors that you need to take into account are prepayment penalty, amortization, and maturity. A prepayment clause is not widely appreciated; however, it is becoming common amongst lenders. Try to negotiate this away. Amortization and payment are inversely proportional to each other. Longer the amortization, lower the payment as the principal is divided into increasingly smaller fragments as the period of years increases. Twenty years is usual amortization period for commercial loans in Georgia, Alabama, Florida, and most places across the United States. For commercial loans in Georgia, Alabama, Florida, lenders will give you a maturity that is smaller than the amortization, which would allow them to modify the loan according to the prevailing market rates.

Common commercial loan structures in Florida, Alabama, and Georgia:

A five-year loan with a twenty-year amortization

A five-year loan with a twenty-five year amortization

A fifteen-year loan with a fifteen-year amortization

There are hundreds of possible combinations of commercial loans available in Florida, Georgia, and Alabama. Some lenders for commercial loans in Florida, Alabama, and Georgia can even customize a loan for you.