1. A commercial land loan allows businesses to purchase
land, buildings, or other property. Like a home
mortgage, a commercial land loan uses the property
being bought as collateral against the loan. Unlike the
process for home mortgages though, approvals for
land loans are based on the property you�re
interested in buying. You�ll need a solid business
plan and careful evaluation of the land to receive
funding.
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2. When buying a new property for your business, location is essential
Find a real estate agent that knows the area as well as the business
potential He/She should help you evaluate foot and vehicle traffic,
zoning regulations, and any previous uses and their success or
failure You�ll need to convince your lender that your new property
will make money

3. Detailed financial plans, reports, balance sheets, tax documents and
sales records will be required to show the overall health and
sustainability of your business A new property will mean a new
business plan, tailored to what you plan to accomplish once you
move Prepare a detailed analysis of the costs and income you
expect in your new space and be sure to include the costs of staffing,
maintenance and loans on the new property as well as a contingency
plan for any challenges you may face

4. There are many lending sources available, but it�s important to
choose one that will work for you and is reputable in your community
This is an essential step in getting into the right commercial land loan
Look for well established lenders and ask for references from other
businesses that have used them

5. loandirectorysg The best lenders will give you advice on what to
look for in a property to ensure a lending source that you�ve
thought out your choices and are well informed They may also guide
you thorough the process of gather information needed to apply for
your loan It can be almost impossible to receive a commercial
property loan as a new business

6. In most cases, owners need to plan on renting space for a couple
years to establish credit before delving into the world of ownership
Raw land loans are also available through the Small Business
Administration (SBA) They will guarantee up to $750,000 to enable
small businesses to get approved without large amounts of collateral

7. They may also suggest you work on a 1-3-5 program: Find one
small bank loan, 3 business credit cards and 5 vendor lines of credit
This can establish the legitimacy of your business and put you on the
path to commercial land ownership in no time

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