How to Get Good Commercial Loan Rates
If you are in the process of taking out a commercial loan getting the best interest rates is crucial to your bottom line. You may think that a small percentage point on the interest will not make a big difference, but it certainly can save you a lot of money over the course of the loan.
- Shop around and compare commercial
loans. This is an obvious step, but sometimes when you deal with a
loan officer over the phone or by email you build up a rapport and
this can make you feel “obligated” to take out the loan with
them even if it is not the lowest rate. Do not fall into this trap!
Remember, their job is to “sell” you on the product, they will
not be the ones making the loan payments. - Negotiate the terms of the loan.
If your loan officer truly wants your business, then they will be
willing to negotiate the terms by bringing down the interest points,
if they are not, walk away. The best way to negotiate is to bring in
some other lender's commercial loan rates when you meet in person,
this will let your loan officer know that you have done your
homework. - Place a larger down payment if you
can. The more of a percentage of the overall cost of the commercial
property you can place, the lower your interest and payments will
be. This is like any other purchase such as a house or a car, the
more you place as a down payment, the better you look to the lender
and the more attractive your rates will be.