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What Are the Benefits of a Commercial Loan for My Business?

Posted on in Business Law

Long Island Sound commercial financing attorney

In order for any business to be successful, it must be able to grow and develop. While there are many ways to foster the expansion of a business, these techniques may require significant financial resources. Whether your company needs an increase in capital to hire additional staff members or to lease or purchase new machinery, a commercial loan could be the answer. As one of the most common approaches to funding a new business endeavor, a commercial loan can provide several advantages to a growing company. A knowledgeable business law attorney can help you secure the finances that are needed to grow and expand your operations.   

What Is a Commercial Loan?

Simply put, a commercial loan is a long-term, capital-heavy loan that typically has low interest rates and somewhat flexible payment options. In most cases, the approval process for this type of loan can be burdensome, which is why it is recommended to have a financing attorney help structure and apply for the loan. For business owners who are looking to foster the growth and development of their company, it is important to be aware of the benefits of obtaining a commercial loan. 

Longevity and Simplicity

Since these types of loans are often spaced out from 3 to 10 years and typically do not have overly high interest rates, businesses usually will not need to struggle to meet difficult payment requirements. Commercial loans can allow a business to repay their debt slowly, giving the company a chance to retain profits and remain operational. Since a loan is typically requested to expand the business, it is recommended that a company avoid taking on additional loans or debts. Consolidating multiple loans could help your business make payments on time and decrease the risk of debt piling up.

Retain Ownership

For any business owner who is trying to grow and develop a company, it is very hard to sign away a percentage of your company. While many investors may try to request a fraction of ownership, a commercial bank loan would allow you to preserve complete control of your business. Losing full ownership or partnership of a business could lead to uncertainty in the future, as another co-owner could sell his or her shares to the highest bidder. 

Contact a Stamford, CT Commercial Financing Lawyer

Fostering the growth and expansion of your business can be a complex task. Financial and legal issues may arise, leaving you unsure about where to turn for help. If financial capital is required for your company to grow, a commercial loan may be the best option to ensure the future success of your livelihood. At the Law Offices of Peter V. Lathouris, LLC, we can help you negotiate a loan agreement and secure the financing your business needs to succeed. To schedule a free consultation with our knowledgeable Fairfield County commercial and business law attorneys, call our office today at 203-359-2047.

 

Source: 

https://www.credibly.com/incredibly/business-capital-101/commercial-loans-for-business/

 

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