Important Things to Know About Commercial Real Estate Loans in Pasig City

Commercial loans differ from residential loans in Pasig City greatly since commercial loans often come with multiple terms and conditions, making the entire process a little complicated. This is one of the reasons why most of the investors are often reluctant in entering into the commercial real estate market. When it comes to the residential real estate, the investors usually deal with about four to ten properties whose cost ranges from a few hundred to a few thousand dollars. The lenders often tag this situation as the one associated with ample risk and conclude the same by opposing any loans further. For commercial properties in Pasig City, the loan essentials vary in the case of banks and the private lenders.

Commercial Bank Loans

To talk about in general the banks often invite 25% part of the total value of the property as the down payment. On top of this heavy requirement, it has been an evident fact that many of the large businesses often fail to further progress and flourish due to inadequate resources in order to meet the needs of their business. This is the reason why banks have made it obligatory for the businesses to maintain a cash reserve which can be utilised in making the loan payments. In order to address the above situation, commercial investors usually borrow as much amount as possible, even at a high rate of interest, so that they do not face any kind of difficulty in building the business and increasing the cash flow considerably.

Private commercial loans

One benefit attached with the private money lenders in Pasig City is that they do not require the business person to fulfil all the meticulous essentials associated with the commercial loans. For instance, they demand considerably low down payment (10-15% of the total value of the property) but may charge a slightly higher rate of interest (1-2% more as compared to the banks).

Acquaint yourself with the proceedings of the types of loans before taking any.