Every business idea starts out as exactly that – an idea. At the beginning, there are scribbles of thoughts on napkins, Excel spreadsheets filled with budgeting plans, and long days spent brainstorming. But at some point, you have to introduce your ideas into the real world and one of the crucial steps is commercial real estate (CRE): the process of choosing, purchasing, upgrading and maintaining a physical space for your business. But wait – how does one go about getting the money? Read on to find out about the importance of CRE loans.

Fast and Furious

What do you do when you spot the perfect building you’ve been dreaming of for your business? You’ve got to act fast and claim it before it disappears from the market! Short-term loans, such as commercial bridge loans, are for situations like these. They are meant to be a fast way to get the cash you need when you need it, and they can take as little as just a few days for approval. Armed with the money flow you need, you can nab that building and be on your way to having your business situated in the place you want it to be.

Slow and Steady

However, at other times, you need to think long-term. Projects such as constructing your facility from the ground up or remodeling your existing building can take multiple months or even years to complete. The Small Business Administration (SBA) is known for providing loans that are both long-lasting and low interest. For instance, an SBA CDC/504 loan offers a 20-year term length with a 2-5% interest rate, while an SBA 7(a) loan offers a 25-year term length with a 5-10% interest rate.

Ready and Reliable

But financial backing for your projects and purchases is not the only reason to apply for loans in commercial real estate. As you fulfill payments towards loans, you are also building up your credit score to show your potential lenders down the road. Your consistency in making payments tells your lenders that you are reliable, garnering their eagerness to help finance your future endeavors. Think of it like stepping stones towards the future of your business.

The world of commercial real estate doesn’t have to be daunting. With some careful thought given to CRE loans, you can be prepared to take into account your financial needs as you eye that perfect space for your business. Most importantly, you’ll be on the way to making your ideas a reality.