How To Start The Commercial Construction Loan Process
The commercial construction loan process can seem daunting, primarily if you’re working on starting your business or very occupied with the day-to-day operations of your business. Let the experts at Sentry Bank help you decipher the process for applying for and receiving a commercial construction loan to help grow your business. Get in touch with our team today to learn more!
COMMERCIAL CONSTRUCTION LOAN PROCESS
1. Gather Information
Before the application process begins, you’ll also want to gather some vital information. You’ll likely need:
- average bank balance;
- length of time in business;
- profit & loss statements;
- balance sheet;
- annual revenue;
- tax returns (personal and business); and more.
Asking a lender like Sentry Bank about their document requirements before you even apply is good practice. This way you can begin compiling the information and reaching out to your accountant if need be.
2. Find A Local Banking Partner
During the application process, your business banker will walk you through all of your different options based on your company’s needs and the documents you’ve gathered.
Local banks like Sentry Bank are the backbone of small business lending in the U.S., so starting out by chatting with us is your best option. If you’re not sure if you can qualify, it doesn’t hurt to at least have a conversation with us.
3. Submit Loan Paperwork
When it comes to the step of actually applying for a business loan, the faster you respond and give lenders everything they need to fulfill your loan application, the quicker you’ll get the funds your business needs in your bank account.
Stop in at one of Sentry Bank’s convenient locations to start working on your small business loan!
TYPES OF COMMERCIAL CONSTRUCTION LOANS
Land Development Loan
A land development loan is used to make your parcel construction-ready. This includes money spent to divide and parcel out the land, or installation of sewer, water, power and other necessities.
Acquisition & Development Loan
An acquisition and development loan is used to improve land after it’s been developed. This loan can cover the cost of purchasing land and any improvements which need to be made to existing infrastructure or buildings.
Interim Construction Loan
A temporary construction loan pays for the labor and materials used. It’s usually valid for 18-36 months and then settled into a long-term mortgage afterward.