Commercial Loan Services
At SK Tax Addison, we recognize that securing the right financing is essential for business growth and stability. Our commercial loan services are designed to help businesses navigate the complexities of obtaining financing tailored to their specific needs. Whether you’re looking to expand operations, invest in new equipment, or manage cash flow, our team of experts is here to guide you through the loan application process and help you secure the best terms.
We take the time to understand your business goals and financial situation, enabling us to recommend the most suitable loan options. With our extensive network of lenders and in-depth knowledge of the lending landscape, we empower you to make informed decisions that align with your financial strategy.
We are the best brokers for Commercial loan in all states
We give you the possibility of having the best interest rate for your loan.
We put our effort to close a deal as soon as possible
We have 15 years experience
We close more than 20 loans per month
At Ska Tax Addison, we specialize in all types of commercial loans, offering unmatched
expertise and exceptional service across all states. Our commitment is to secure the best interest
rates to your loan. We leverage our relationships with top lenders to find the best rates for your
loan. With our extensive network and industry knowledge, we ensure you get the most favorable
terms available. Start working with the greatest broker in Chicago and take your business to the
next level. Contact us today to start your journey!
Types of commercial loan
SBA 7(a) Loan
The SBA 7(a) Loan Program is one of the most popular and versatile funding options provided by the Small Business Administration (SBA). It is designed to help small businesses that may not qualify for traditional bank loans by offering more flexible terms and conditions.
Key Features of SBA 7(a) Loans
● Purpose:
○ Used for a variety of business needs, including working capital, purchasing equipment, refinancing debt, buying real estate, and funding expansions.
● Eligibility:
○ For-profit businesses that operate in the U.S.
○ Must be a small business according to SBA size standards.
○ Have a reasonable amount of owner equity.
○ Demonstrate a need for the loan and the ability to repay it.
○ Generally, established businesses with a track record of financial stability are preferred, but some startups may qualify.
● Loan Amount:
○ Up to $5 million.
● Terms:
○ Real Estate: Up to 25 years.
○ Equipment and Working Capital: Up to 10 years.
○ Working Capital: Up to 7 years.
○ Terms are based on the purpose of the loan and the borrower’s ability to repay.
● Interest Rates:
○ Rates are set by the lender but capped by the SBA.
○ Variable or fixed-rate options are available.
● Collateral:
○ SBA 7(a) loans may require collateral, but the SBA does not mandate it for loans up to $25,000.
○ Collateral requirements vary by lender and loan size.
● Repayment:
○ Repayments are generally made monthly, but the exact schedule can vary based on the loan terms.
The SBA 504 Loan
The SBA 504 Loan Program is designed to provide long-term, fixed-rate financing for major assets such as commercial real estate and equipment. It’s particularly useful for small businesses looking to acquire or improve fixed assets with favorable terms.
Key Features of SBA 504 Loans
● Purpose:
○ Used specifically for purchasing or improving commercial real estate, including buildings and land.
○ Can also be used for purchasing major equipment or machinery that is essential for business operations.
● Eligibility:
○ For-profit businesses that operate in the U.S.
○ Must meet SBA size standards for a small business.
○ The business should demonstrate a need for the loan and the ability to repay it.
○ Typically, businesses must have been operating for at least two years and show good credit history.
● Loan Amount:
○ Up to $5 million for most projects.
○ In certain cases, especially for projects involving energy efficiency improvements, the limit can be higher.
● Terms:
○ Real Estate: Up to 20 years.
○ Equipment: Up to 10 years.
○ Fixed Rates: Interest rates on the SBA 504 loan are fixed for the life of the loan.
● Down Payment:
○ Typically, the borrower must provide at least 10% of the project’s cost.
○ The SBA and a lender each cover a portion of the loan, with the SBA covering up to 40% and the lender covering up to 50%.
● Interest Rates:
○ Fixed rates are generally lower than conventional loan rates.
○ Rates are set based on the 10-year or 20-year U.S. Treasury rate plus a fixed spread.
● Collateral:
○ The assets being financed usually serve as collateral for the loan.
○ Additional collateral may be required depending on the loan amount and lender’s requirements.
Conventional loans
Conventional loans are standard loans offered by private lenders such as banks, credit unions, and mortgage companies. They are not backed or guaranteed by a government agency, unlike FHA, VA, or USDA loans. Here’s a comprehensive overview of conventional loans, including their types, features, and considerations:
Types of Conventional Loans
1. Conforming Loans:
○ Definition: These loans meet the guidelines set by government-sponsored enterprises (GSEs) such as Fannie Mae and Freddie Mac.
○ Limits: Subject to loan limits established by the GSEs, which can vary by region.
○ Features: Often have more favorable terms and conditions because they are sold on the secondary mortgage market.
2. Non-Conforming Loans:
○ Definition: These loans do not meet the criteria set by Fannie Mae or Freddie Mac.
○ Types: Includes jumbo loans (for amounts exceeding conforming loan limits) and loans for unique properties or borrowers with non-standard financial situations.
○ Features: Generally come with higher interest rates and stricter underwriting criteria.
Key Features of Conventional Loans
● Down Payment:
○ Requirements: Typically require a down payment of at least 20% of the property’s purchase price.
○ Impact: A larger down payment may result in better terms and potentially lower interest rates.
● Interest Rates:
○ Types: Can be either fixed-rate or adjustable-rate.
○ Fixed-Rate Loans: The interest rate remains constant throughout the term of the loan.
○ Adjustable-Rate Loans (ARMs): The interest rate may fluctuate based on market conditions after an initial fixed period.
● Loan Terms:
○ Common terms include 15, 20, or 30 years.
○ Shorter terms generally have higher monthly payments but lower total interest costs.
● Credit Requirements:
○ Credit Score: Typically requires a higher credit score compared to government-backed loans. A score of 620 or higher is often needed, though better terms may be available for higher scores.
○ Credit History: Lenders assess credit history to determine risk and interest rates.
● Income and Employment Verification:
○ Lenders require documentation of stable income and employment history. This can include pay stubs, tax returns, and proof of assets.
● Property Requirements:
○ Properties must meet certain standards and appraisals to ensure they are worth the loan amount and in good condition.
Hard money lending
Hard money lending is a type of short-term, asset-based financing provided by private investors or companies rather than traditional financial institutions. It is often used for real estate transactions and other high-risk situations where conventional financing may not be available.
Key Features of Hard Money Lending
● Asset-Based: Hard money loans are primarily secured by the value of the property or asset being financed, rather than the borrower’s creditworthiness or income.
● Short-Term: Typically short-term loans with durations ranging from a few months to a few years.
● Higher Interest Rates: Generally have higher interest rates compared to conventional loans due to the higher risk associated with them.
● Quick Approval and Funding: Often have a faster approval process and quicker funding times compared to traditional loans.
● Flexible Terms: Terms can be more flexible and tailored to the borrower’s needs, although this varies by lender.
Advantages of Hard Money Lending
● Speed: Fast approval and funding processes, often within days.
● Flexibility: Terms and conditions can be negotiated directly with the lender.
● Accessibility: Available to borrowers who may not qualify for traditional loans due to poor credit or unconventional properties.
Considerations and Risks
● Higher Costs: Higher interest rates and fees compared to conventional loans or SBA.
● Short-Term Nature: Typically have shorter repayment periods, which can be challenging for borrowers needing longer-term financing.
● Asset Risk: If the borrower defaults, the lender may seize the property or asset used as collateral.
● Less Regulation: Less regulated than conventional lenders, leading to potential variations in terms and conditions.
Refinancing a loan
Refinancing a loan involves replacing an existing loan with a new one, often with different terms. This process can help you lower your interest rate, reduce monthly payments, or change the length of your loan.
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Refinancing a loan
Refinancing a loan involves replacing an existing loan with a new one, often with different terms. This process can help you lower your interest rate, reduce monthly payments, or change the length of your loan.
Reasons to Refinance a Loan:
Lower Interest Rates
Refinancing can reduce your interest rate, potentially saving you money over the life of the loan and lowering your monthly payments.
Change Loan Terms
Adjust the length of your loan to either shorten the term (for higher payments but less interest over time) or extend it (for lower payments but more interest overall).
Change Loan Type
Switch from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage to lock in a stable rate, or vice versa, depending on market conditions and your financial goals.
Consolidate Debt
Combine multiple loans or debts into a single loan with potentially better terms or a lower interest rate.
Access Equity
For mortgages or real estate loans, refinancing can allow you to tap into the equity of your property for cash-out purposes, which can be used for home improvements, debt consolidation, or other needs.
Improve Loan Terms
Modify existing terms to better fit your current financial situation, such as reducing prepayment penalties or adjusting the payment schedule.
Reasons to Refinance a Loan:
Lower Interest Rates
Refinancing can reduce your interest rate, potentially saving you money over the life of the loan and lowering your monthly payments.
Change Loan Terms
Adjust the length of your loan to either shorten the term (for higher payments but less interest over time) or extend it (for lower payments but more interest overall).
Change Loan Type
Switch from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage to lock in a stable rate, or vice versa, depending on market conditions and your financial goals.
Consolidate Debt
Combine multiple loans or debts into a single loan with potentially better terms or a lower interest rate.
Access Equity
For mortgages or real estate loans, refinancing can allow you to tap into the equity of your property for cash-out purposes, which can be used for home improvements, debt consolidation, or other needs.
Improve Loan Terms
Modify existing terms to better fit your current financial situation, such as reducing prepayment penalties or adjusting the payment schedule.
How We Handle R&D Tax Credit Services
Commercial Lending
These loans are given to business organizations. These loans help to assist one with short term funds needed for buying pieces of equipment or funding the operation costs. They are most popularly used for short term funding purposes.
SBA Lending
Small Business Administration helps to ensure that ad advance is offered by the money lenders and the banks. SBA credits have a long reimbursement period. For working capital, the period is seven years, for buying hardware the period is 10 years, and for purchasing land, the period is 25 years.
Commercial Real Estate
In a majority of the cases, the business property is rented. Only a few business companies have a place of their own. A financial specialist claims the structure and this person takes the lease for every kind of business that operates there.
Equipment Loans
For purchasing hardware for the business, these kinds of loans are given to the people. The person taking the loan must compensate this advance amount during the life expectancy of the machine. The banks use the hardware as security for situations when the business will not be able to pay back the loan amount.
Invoice Financing
Invoice financing allows businesses to borrow money against the amounts due from their customers. This type of loan is ideal for managing cash flow gaps caused by unpaid invoices, ensuring uninterrupted operations. It helps businesses meet short-term needs like payroll, inventory purchases, or other operating expenses without waiting for customers to pay.
Startup Loans
Startup loans are designed specifically for new businesses or entrepreneurs. These loans provide the capital needed to kickstart operations, such as funding for office space, inventory, technology, or marketing. They are tailored to support businesses in their early stages, offering flexible repayment terms and competitive interest rates.
We have 15+ years experience
“We have over 15+ years of experience providing expert financial advice to both businesses and individuals.”
At Ska Tax Addison, we specialize in all types of commercial loans, offering unmatched expertise and exceptional service across all states. Our commitment is to secure the best interest rates to your loan. We leverage our relationships with top lenders to find the best rates for your loan. With our extensive network and industry knowledge, we ensure you get the most favorable terms available. Start working with the greatest broker in Chicago and take your business to the next level. Contact us today to start your journey!
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Our expert
Our R&D tax credit expert specializes in maximizing benefits for your innovation efforts. With extensive knowledge of qualifying activities and compliance requirements, they provide tailored strategies to reduce your tax burden and boost cash flow, empowering your business to invest in groundbreaking developments confidently.
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Phone : (847) 264-9499
Fax: (847) 349-4409
Direct number : (847) 999-3370
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finance@sktaxaddison.com