Everyone, it seems, is talking about the historically low interest rates available today. What does this mean for your business? If you are looking to invest in your business property or equipment, it is very good news.
There are two different types of loan rates: Fixed and variable (or adjustable). With a variable-rate loan, the interest rate fluctuates along with changes in the market interest rates. This means your monthly payments will vary, either rising or falling according to current market rates.
In a fixed-rate loan, the interest rate will remain the same for that loan's entire term, no matter what market interest rates do. This will keep your monthly payments the same over the entire term. Given how incredibly low market interest rates are currently, securing a fixed-rate loan now guarantees a low interest rate for the entirety of the loan.
Why settle for variable market rates when you can have peace of mind with a fixed rate? Community Business Finance offers you this peace of mind with below market, fixed-rate loans for 20 years, fully amortized.
The combination of longer loan amortizations, 10% down payment, and below market interest rates allows you to minimize your monthly payment and realize the many advantages of owning commercial real estate. With an SBA 504 loan, you will also avoid the restrictive covenants and balloon payments often found in conventional loans.
SBA 504 loans leave more working capital available to expand your business and allow you to build equity for your future. In addition, there are tax advantages to real estate ownership and a fixed-rate loan results in lower and predictable occupancy costs.