What is a permanent loan?

A permanent loan is a long-term financing option typically lasting between 5 and 30 years. Despite the name, "permanent" can be a bit misleading as these loans are not meant to be repaid forever. They are also known as term loans and involve a structured repayment plan.

What types of properties can be financed with permanent loans?

Permanent loans are primarily used to finance income-producing properties such as office buildings, shopping centers, and other commercial real estate. Additionally, there are specific permanent loans designed to pay off construction loans once a building project is completed.

What are the benefits of obtaining a permanent loan?

Permanent loans generally offer lower interest rates compared to construction loans because the risk for the lender is reduced once the property is completed and generating income. They also provide manageable monthly payments by spreading out the loan burden over a longer term.

How do I know if a permanent loan is right for my business?

Permanent loans are suitable for businesses that need financing for existing income-generating properties, wish to refinance existing debt with a lower interest rate, and have a stable property with reasonable occupancy rates. If you're unsure, it's a good idea to consult with a financial advisor to determine if a permanent loan aligns with your business goals.

What documents are required for a permanent loan application?

At Hotel Loans, we specialize in providing tailored financing solutions for hotels. Our expert team is dedicated to understanding the unique needs of hotel businesses, offering flexible repayment terms, competitive rates, and increased chances of approval. We work closely with you to ensure that you receive a financing solution that meets your specific needs. Contact us to get started!

Long-lasting, sustainable progress - Permanent Loans for Your Needs

You wish to fundraise a lot for your famous hotel. We offer reasonable interest rates and terms for our permanent loans, which may alter at any time. Complete your plans immediately.

Free Consultation

What Are Permanent Loans?

Permanent loans are long-term financing options, typically lasting between 5 and 30 years. Despite the name, “permanent” is a bit misleading. This is also called a term loan. They are not loans you never repay.

Types of Permanent Loans

Commercial permanent loans finance most income-producing properties like office buildings and shopping centers.
A specific type of permanent loan used to pay off a construction loan after a building is completed.

Benefits of Permanent Loans

These are typically lower than construction loans due to the lower risk for the lender since the property is already built and generating income.
Allows for manageable monthly payments and spreads out the loan burden.

Are Permanent Loans Right for Your Business?

Permanent loans are ideal for businesses that:

Need financing for existing income-generating properties.
Want to refinance existing debt on a property with a lower interest rate.
Have a solid financial history and a stable property with reasonable occupancy rates (for commercial properties).

If you need more clarification, consult a financial advisor to discuss your situation and see if a permanent loan aligns with your business goals.

Permanent Loan Documents

The specific documents required will vary depending on the lender and the property, but here are some general examples:

Loan application
Business plan (for commercial properties)
Financial statements (past 2-3 years)
Tax returns (personal and business)
Property appraisals
Leases (if applicable)
Environmental reports (in some cases)

Permanent Loan Process

Pre-Approval: You submit a loan application, financials, and property details.
Underwriting: The lender evaluates your creditworthiness and the property’s value.
Loan Approval: You receive a loan commitment with terms and conditions.
Construction Phase: Draws are made from the loan to pay for construction costs as milestones are met.
Conversion to Permanent: Construction-to-permanent loans become permanent following construction.

Why Choose Us for Your Hotel Financing Needs?

At Hotel Loans, we understand the unique challenges faced by hotel businesses in securing financing. Our team of experts will work with you every step of the way to customize an SBA loan solution that meets your specific needs. From flexible repayment terms to competitive rates and increased chances of approval, we are the premier destination for tailored financing solutions. Contact us today to get started!

Ready to Discuss Your Hotel's Financial Strategy? Need a Commercial Loan?

Contact us today at Hotel Loans to initiate a conversation about how our financial expertise can contribute to the success of your hotel business. Our experienced team will be happy to help you.