Expert: Terrence Cullen - 5/15/2009

Question
terrence, can you answer these questions for me......?
what's the difference between business loans and comm'l loans? which is easier to otain? which does NOT look at PERSONAL income? are terms different for both? do either do 100% finance lending?
thanks
trying to figure where to direct my energy, a business(laundromat) or comm'l (apt bldgs)

Answer
Neither do 100. Business loans are based on the business and personal balance sheet with the emphasis on the length of time and viability of the business. Most commercial loans are sold a s securities depending on size and as such focus on the income, but the threshold income cash liquidity is usually 6 months debt service and net worth equal to at least the property value.
 The business loan takes into account contingent liabilities more than the commercial loan. Either way you can not in this environment get a loan without any cash. Good Luck TC