I. General Understanding & Definitions
A commercial loan is a debt-based funding arrangement between a business and a financial institution, typically used to fund major capital expenditures and/or cover operational costs that the business may otherwise be unable to afford. These loans are specifically for business purposes, not personal use.
A business loan is financing specifically designed for business purposes. This can include funding for startup costs, working capital, equipment purchases, expansion, inventory, or managing day-to-day expenses. “Business loan” is a broad term that encompasses many types of commercial financing.
Often, the terms are used interchangeably. “Commercial loan” sometimes refers more specifically to loans for commercial real estate or larger business ventures, while “business loan” can be a broader term. At Tribune Funding, we offer a range of solutions that cover both. Tell us about your needs, and we can guide you.
- Business loans can be used for a wide variety of purposes, including:
-
- Purchasing equipment
- Buying inventory
- Expanding your business operations
- Acquiring another business
- Purchasing or renovating commercial real estate
- Working capital to manage cash flow
- Refinancing existing debt
- Startup costs
Working capital is the difference between a company’s current assets (like cash, accounts receivable, and inventories) and its current liabilities (like accounts payable and short-term debts). A working capital loan provides funds to cover short-term operational needs.
Collateral is an asset or property that a borrower offers to a lender to secure a loan. If the borrower defaults on the loan, the lender has the right to seize the collateral to recoup its losses.
The “term” of a loan is the period over which the loan is scheduled to be repaid. It’s usually expressed in months or years.
II. Types of Loans Offered (Customize with your specific products)
At Tribune Funding we offer a variety of business financing solutions, including Term Loans, Lines of Credit, SBA Loans, Equipment Financing, Invoice Financing, Commercial Real Estate Loans, etc. We can help you find the best fit for your business needs.
A term loan is a loan for a specific amount of money that has a specified repayment schedule and a fixed or floating interest rate. Borrowers receive a lump sum upfront and repay it in regular installments over the loan term.
A business line of credit provides access to a flexible pool of funds up to a certain limit. You can draw funds as needed and only pay interest on the amount you use. As you repay, the available credit replenishes.
SBA loans are government-backed loans offered by lenders like us in partnership with the U.S. Small Business Administration (SBA). They often come with favorable terms, such as lower interest rates and longer repayment periods, to help small businesses succeed.
Yes, we are proud to offer SBA loans. We can assist with SBA 7(a) loans, SBA 504 loans, SBA Express loans, etc.
Equipment financing is a type of loan used specifically to purchase business equipment. The equipment itself often serves as collateral for the loan.
Invoice financing (or factoring) allows businesses to borrow money against the amounts due from customers (outstanding invoices). It helps improve cash flow by providing immediate funds instead of waiting for customers to pay.
Commercial real estate (CRE) loans are used to purchase, develop, or renovate commercial properties, such as office buildings, retail spaces, industrial facilities, or multi-family rental properties.
Yes, we have financing options that may be suitable for startups, such as unsecured loans or SBA microloans. Funding for startups can be challenging, but we’re happy to discuss your business plan and see how we can help.
A bridge loan is a short-term loan used to “bridge the gap” until a company can secure permanent financing or remove an existing obligation. They are often used in real estate transactions or to cover immediate needs.
A commercial mortgage is a loan secured by a commercial property. Similar to a residential mortgage, the borrower makes regular payments over an agreed term. If the borrower defaults, the lender can foreclose on the property. Terms and rates can vary significantly based on the property type, loan amount, and borrower’s creditworthiness.
III. Eligibility & Qualification
- Qualification criteria vary depending on the loan type and lender. Generally, lenders look at factors such as:
- Your personal and business credit score
- Time in business
- Annual revenue and profitability
- Cash flow
- Collateral (if required)
- Business plan (especially for newer businesses)
- Industry type
The minimum credit score requirement varies by loan product and lender. Generally, a higher credit score improves your chances of approval and can lead to better loan terms. Please contact us to discuss your specific situation, as we have options for various credit profiles. For most loans, we typically look for a minimum credit score of 680.
Some business loans require collateral (secured loans), while others do not (unsecured loans). The need for collateral depends on the loan type, loan amount, and your business’s risk profile. We offer both secured and unsecured options.
This varies. Some lenders require a minimum of 1-2 years in business, especially for traditional term loans. However, there are options for newer businesses and startups, such as certain SBA loans or lines of credit. Let us know your business history, and we can explore suitable options.
Minimum revenue requirements differ by loan product and lender. We’ll assess your business’s revenue and cash flow to determine loan eligibility and capacity. We generally look for businesses with annual revenues of at least $100,000.
While a good credit history is beneficial, options may still be available if you have bad credit, though terms might be less favorable. We assess each application individually and consider various factors. We encourage you to speak with one of our loan specialists to explore possibilities.
A well-thought-out business plan is highly recommended, especially for startups or businesses seeking significant funding for expansion. It helps demonstrate your vision, market understanding, financial projections, and repayment ability. For some loans, it may be a requirement.
A down payment is the portion of the purchase price of an asset (like real estate or equipment) that the borrower pays upfront in cash. Many commercial loans, especially for real estate and equipment, require a down payment. The percentage required varies. For example, commercial real estate loans might require 10% to 30% or more.
IV. Application Process
You can start the application process by visiting our website and filling out our online inquiry form, calling one of our loan specialists, or visiting one of our branches.]. We’ll then guide you through the necessary steps.
- Common documents required include:
- Business plan (especially for new businesses or expansions)
- Personal and business financial statements (e.g., balance sheets, income statements, cash flow statements)
- Personal and business tax returns (typically for the last 2-3 years)
- Bank statements
- Legal documents (e.g., articles of incorporation, business licenses, partnership agreements)
- Resumes of principal owners
- Loan application form
- Information about collateral (if applicable) The specific documents will depend on the loan type and amount. We will provide you with a detailed checklist.
The time it takes to approve and fund a loan can vary significantly depending on the loan type, the completeness of your application, and the complexity of your financial situation. It can range from a few days for some online lenders or lines of credit to several weeks or even months for more complex loans like SBA loans or large commercial real estate deals. We strive to make our process as efficient as possible.
Yes, we offer a secure online application portal. OR You can start your inquiry online, and one of our specialists will guide you through the next steps.]
You can check the status of your loan application by contacting your dedicated loan officer, logging into our online portal, or calling our customer service line.
Some loan applications may involve an application fee to cover initial costs like credit checks or appraisals. We will inform you of any applicable fees upfront. But no, we do not charge an application fee.
Loan underwriting is the process a lender goes through to assess the creditworthiness and risk of a potential borrower. It involves evaluating your application, financial information, credit history, and the collateral (if any) to decide whether to approve the loan and under what terms.
V. Loan Terms & Costs
- Interest rates for business loans vary widely based on factors such as:
- The type of loan
- Your creditworthiness and business financial health
- The loan amount and term
- Current market conditions (e.g., prime rate)
- Collateral We offer competitive rates and will provide you with a specific rate quote after reviewing your application.
We offer both fixed and variable interest rate options, depending on the loan product. A fixed rate remains the same throughout the loan term, while a variable rate can fluctuate based on changes in a benchmark index rate.
- Besides interest, other potential fees can include:
- Origination fees (for processing the loan)
- Appraisal fees (especially for real estate)
- Closing costs
- Late payment fees
- Prepayment penalties (for paying off the loan early, on some loans) We believe in transparency and will provide a clear breakdown of all applicable fees before you commit to a loan.
An origination fee is an upfront fee charged by a lender for processing a new loan application. Also referred to as “points” It’s typically a percentage of the total loan amount.
We offer a wide range of loan amounts, from $$50,000 to $200+ Million depending on the loan type and your business’s qualifications.
Repayment terms vary by loan product. Short-term loans might have terms from a few months to a few years, while loans for real estate or major equipment can have much longer terms, sometimes up to 25 years or more.
Some loans may have a prepayment penalty, while others do not. We will clearly state whether a prepayment penalty applies to your specific loan agreement.
Your monthly payment is typically calculated based on the loan principal, the interest rate, and the loan term using an amortization formula. We can provide you with an estimated payment schedule.
VI. Specific Scenarios & Uses
Yes, we offer business acquisition loans to help you purchase an existing business. This often involves a detailed review of the target business’s financials and operations.
The best loan for expansion depends on your specific plans. It could be a term loan for a major investment, a line of credit for ongoing needs, or equipment financing if you’re buying new machinery. Let’s discuss your expansion goals.
Yes, we offer business loan refinancing. This could potentially help you secure a lower interest rate, different repayment terms, or consolidate multiple debts.
We provide financing solutions to businesses across most industries.
VII. About Tribune Funding
- At Tribune Funding, we offer competitive rates, a wide range of loan products, personalized service, expert advice, quick turnaround times, deep understanding of the local market, and a commitment to helping businesses succeed.
The leadership at Tribune Funding has been proudly serving businesses for 25 years, helping them achieve their financial goals.
Yes, protecting your personal and business information is a top priority for us. We use industry-standard security measures to ensure your data is safe and confidential. You can review our privacy policy here: https://tribunefunding.com/privacy
Our team of experienced loan specialists are here to help! You can contact us at (800) 425-2805 email us at loans@tribunefunding.com.
VIII. Post-Funding & Support
After your loan is funded, you will begin making regular payments according to your loan agreement. We will provide you with information on how to manage your loan, make payments, and who to contact if you have any questions or need assistance.
We offer several convenient ways to make your loan payments, including online transfers, automatic debit (ACH), mail-in payments, etc.
If you anticipate having trouble making a payment, please contact us as soon as possible. We understand that businesses can face unexpected challenges, and we may be able to discuss potential options or solutions with you.
IX. Troubleshooting & Common Issues
If a loan application is denied, we will provide you with the reasons. Common reasons can include insufficient credit score, high debt-to-income ratio, insufficient cash flow, lack of collateral (if required), or an incomplete application.
Yes, you can typically reapply. It’s advisable to address the reasons for the initial denial before reapplying. Our loan specialists can offer guidance on how to strengthen your application.
I. Basic Understanding & Definitions
A commercial loan is a debt-based funding arrangement between a business and a financial institution, typically used to fund major capital expenditures and/or cover operational costs that the business may otherwise be unable to afford. These are different from personal loans and are specifically for business or investment purposes related to commercial properties.
A business loan is financing specifically designed for business purposes. It can be used for various needs like working capital, equipment purchase, expansion, inventory, or refinancing existing debt. Unlike commercial loans that often relate to real estate, business loans can cover a broader range of operational and growth needs.
Commercial and business loans are for new or existing businesses, including sole proprietors, partnerships, LLCs, and corporations, as well as real estate investors. They are intended for entities looking to finance business-related expenses or commercial property transactions.
Often, the terms are used interchangeably. However, “commercial loan” can sometimes specifically refer to loans for commercial real estate (e.g., buying an office building or retail space). “Business loan” can be a broader term encompassing financing for various business needs, including working capital, equipment, or business acquisition, which may or may not involve real estate. We offer a range of both!
- Businesses and investors use these loans for many reasons, such as:
- Purchasing or refinancing commercial real estate
- Funding business expansion or a new location
- Buying equipment or machinery
- Increasing working capital for day-to-day operations
- Acquiring another business
- Managing cash flow
- Funding new construction or property development
II. Types of Loans Offered (Customize with your specific products)
We offer a variety of commercial loan products, including Commercial Real Estate Loans, Bridge Loans, Construction Loans, Hard Money Loans, DSCR Loans, Land, Renovation Completion, Bailouts, Note financing, Multi-family, Portfolio loans, Small under $75K, Business Purpose Owner Occupied 2nds, Cannabis, USDA, Farm, Mobile Home/RV Park loans, Hospitality, Commercial 2nds, Foreign nationals, ARV loans. Each is designed for different needs and property types.
Our business loan options include Term Loans, Lines of Credit, SBA Loans, Equipment Financing, Invoice Financing, Startup Loans, Business Acquisition Loans. Let us know your needs, and we can help find the right fit.
A DSCR (Debt Service Coverage Ratio) loan is primarily used for financing income-generating investment properties. Lenders qualify you based on the property’s cash flow (its ability to cover debt payments) rather than your personal income. A DSCR above 1 typically indicates positive cash flow.
An SBA loan is a government-backed loan offered by lenders like us. The Small Business Administration (SBA) partially guarantees these loans, which can mean more favorable terms, lower down payments, and longer repayment periods for small businesses.
A business line of credit provides access to a specific amount of funds that you can draw from as needed, up to a certain limit. You only pay interest on the amount you use. It’s great for managing cash flow, unexpected expenses, or short-term financing needs.
Equipment financing is a loan used specifically to purchase business equipment. The equipment itself often serves as collateral for the loan. This can help businesses acquire necessary tools without a large upfront cash payment.
A term loan provides a lump sum of capital that you repay in regular installments over a set period (term), with a fixed or variable interest rate. They are often used for significant investments like expansion or major purchases.
“Yes, we have financing options tailored for startups, which may include SBA loans or specific startup term loans. These often require a strong business plan and projections.”
Yes, we offer business acquisition loans designed to help you purchase an existing company. These loans can cover the purchase price and sometimes working capital for the transition.
“Yes, we provide commercial construction loans for new building projects or significant renovations. These typically involve a draw schedule based on construction progress.”
III. Eligibility & Qualification
- General eligibility criteria often include:
- A solid business plan (especially for new businesses)
- Good personal and business credit scores
- Sufficient cash flow or projected revenue to cover loan payments
- Industry experience
- Potential collateral
- Each loan program has specific requirements.
The minimum credit score varies by loan type and lender. Generally, a higher credit score improves your chances of approval and can lead to better terms. “For many of our programs, a score of 620+ is preferred, but credit scores aren’t the main qualifier as we evaluate each application comprehensively.”
It depends on the loan type. Many commercial real estate loans are secured by the property itself. Some business loans may require other collateral like equipment, inventory, or accounts receivable. Unsecured loans are available but often have stricter credit requirements and potentially higher rates.
- The amount you can borrow depends on several factors, including:
- The type of loan
- Your business’s financial health and cash flow
- Your creditworthiness
- The value of available collateral
- The purpose of the loan We can help you determine a suitable loan amount after reviewing your information.
Down payment requirements vary but typically range from 10% to 30% or more of the property’s purchase price. Some loan programs, like certain SBA loans, may offer lower down payment options.
For many small business loans and commercial real estate loans (especially for smaller businesses or sole proprietors), personal income and credit history are important factors. For some loans, like DSCR loans, the property’s income is more critical.
While good credit is preferred, options may still be available for borrowers with less-than-perfect credit. These might include specialized loan programs, loans requiring more collateral, or potentially higher interest rates. We encourage you to discuss your situation with us.
This varies. Some programs are available for startups, while others require a minimum of 1-3 years in business. Generally, a longer, successful track record strengthens your application.
IV. Application Process
You can start the application process by filling out our online inquiry form: https://tribunefunding.com/apply-now/. We’ll then guide you through the next steps.
- Common documents include:
- Business plan (especially for new businesses or expansions)
- Personal and business tax returns (typically 2-3 years)
- Financial statements (Profit & Loss, Balance Sheet, Cash Flow Statement)
- Bank statements (personal and business)
- Legal business documents (Articles of Incorporation, Partnership Agreements, etc.)
- Resumes of key principals
- Detailed list of how loan funds will be used
- Information on collateral (if applicable)
- For commercial property: Purchase agreement, property details, rent rolls, leases We will provide you with a specific checklist based on the loan type.
The timeline varies depending on the loan type, complexity of the deal, and completeness of your application. It can range from a few days for simpler loans to several weeks or even months for more complex commercial real estate or SBA loans. We strive to make the process as efficient as possible.
We do not charge an application fee. We will disclose any fees upfront.
Yes, we offer a pre-qualification or pre-approval process. This can give you an estimate of how much you might be able to borrow and under what general terms, which is helpful when searching for property or planning business investments.
V. Loan Terms & Costs
Interest rates vary based on the loan type, your creditworthiness, market conditions, loan term, and other risk factors. They can be fixed or variable. Please contact us for current rate indications based on your specific scenario.
A fixed interest rate remains the same throughout the loan term, so your principal and interest payments are predictable. A variable interest rate can fluctuate over the life of the loan based on changes in a benchmark index (like the Prime Rate), meaning your payments could increase or decrease.
- Potential fees can include:
- Origination fee: A percentage of the loan amount for processing the loan.
- Appraisal fee: For commercial real estate to determine property value.
- Closing costs: Various fees for legal work, title insurance, recording fees, etc.
- Servicing fees: Ongoing fees for managing the loan.
- Prepayment penalties: A fee if you pay off the loan early (not on all loans). We provide a clear breakdown of all potential fees associated with your specific loan.
- Insurance: This is normally paid upfront or can be billed at closing.
An origination fee is charged by a lender to cover the costs of processing and underwriting a loan application. It’s typically a percentage of the total loan amount.
- Loan terms vary significantly:
- Lines of credit might be revolving or have short terms (e.g., 1-5 years).
- Equipment loans often match the useful life of the equipment (e.g., 3-10 years).
- Term loans can range from short-term (1-5 years) to medium-term (5-10 years).
- Commercial real estate loans can have terms from 5 to 25 years or longer, sometimes with balloon payments.
- SBA loans can have long terms, up to 10 years for working capital/equipment and 25 years for real estate.
Some loans may have prepayment penalties if you pay off the loan significantly earlier than the agreed-upon term. This compensates the lender for lost interest. We will clearly disclose if a prepayment penalty applies to your loan.
Amortization is the process of paying off a debt over time through regular installments. Each payment typically covers both principal and interest. An amortization schedule shows how much of each payment goes towards principal versus interest over the life of the loan.
VI. Specific Scenarios & Uses of Funds
Yes, many business loans, such as lines of credit or short-term loans, are ideal for covering working capital needs like payroll, inventory, or operational expenses.
Yes, refinancing existing debt is a common reason to take out a new loan. This can potentially help you secure a lower interest rate, better terms, or consolidate multiple debts into one payment.
Absolutely. We offer various commercial real estate loans, including DSCR loans, specifically for purchasing income-generating investment properties like apartment buildings, retail centers, office buildings, and industrial properties.
Yes, financing is available for purchasing a franchise. SBA loans are a popular option for franchise financing. We can discuss the specific requirements.
We offer loans that can cover the costs of renovation, expansion, or leasehold improvements for your commercial property or business space.
VII. About Us (Customize with your company’s specifics)
At Tribune Funding,we offer competitive rates, a wide range of loan products, personalized service, expert advice, quick turnaround times, deep understanding of the local market, and a commitment to helping businesses succeed.
Our team operates from multiple remote locations. We work with borrowers nationwide and U.S. territories.
You can reach our experienced loan officers by calling us at [Your Phone Number], emailing us at loans@tribunefunding.com or filling out the contact form on our website https://tribunefunding.com/apply-now/
VIII. Post-Funding & Support
Your loan may be serviced by our trusted third-party servicing partner. We will provide you with all their contact details.
Yes, refinancing existing debt is a common reason to take out a new loan. This can potentially help you secure a lower interest rate, better terms, or consolidate multiple debts into one payment.
Generally, yes. Making extra payments can help you pay off your loan faster and save on interest. However, it’s important to check if your loan has any prepayment penalties.
If you anticipate difficulty making your payments, please contact us as soon as possible. We are committed to working with our clients and may be able to discuss potential options or solutions depending on your circumstances.
IX. Troubleshooting & Common Issues
If your application is denied, we will provide you with the reasons as required by law. Common reasons can include credit history, insufficient cash flow, inadequate collateral, or issues with the business plan. Understanding these reasons can help you address them for future applications.
A personal guarantee is a legal promise by a business owner (or owners) to repay a business loan personally if the business defaults. It is often required for small business loans, especially for newer businesses or those with limited collateral, as it reduces risk for the lender.