Bad Traits for Commercial Loans
DID YOU KNOW: As of last year, $2.1 Billion dollars in Commercial Loans were issued to Business Owners, Investors and other companies to support their Business needs.
I bet you all of my hard earned $$ that a good amount of those people got bad deals. Because a lot of these same people are making rash decisions without doing their proper due diligence.
So how do you know if you have a Bad Loan?
Won’t Help Your Cash-Flow
Loans are supposed to run parallel with your business operation, not sink through the floor like quick sand. It’s supposed to help you, not kill you. Make sure when looking at the terms, you do your job and crunch the numbers on your end so you’re sure that you’ll be able to comfortably afford the deal.
Loan turns into ‘Bad Debt’
Any Commercial Loan that you apply for should only be used as a partner in achieving a goal or venture, not as a device to buy clothes or those fancy sports cars. The last thing that you need on your conscience about a Loan is having it turn into Bad Debt – meaning you’re not able to make money with it.
Pre-Payment Penalty Confusion
This is one of the most crucial…and the most often overlooked aspects of any type of Loan offer that’s out there. The pre-payment penalty. This is an immensely underrated factor that most Business Owners don’t take seriously. It can be a benefit or it can be a crutch. It’s really up to you as to how you would like to strategize your payments. For many, they use the pre-pay penalty clause as an advantage after they use their loan in fulfilling the need they needed the loan to pay for: such as winning the bid on a Commercial Property or meeting their payroll. It’s crucial to know what type of pre-payment penalty that you have how long it is.
Our primary objective at Hudson is to always provide you with the greatest possible deal. We are always available 24/7 to serve any of your financing needs.
All the Best!