If your business is successful and continuing growth is possible only if you get more space, a new Denver construction companies commercial building might be what you need. Starting a commercial building project is a huge responsibility, though, an investment that requires careful calculation and also one that you don’t have to give up on if you do not have the money to pay for your new building out of your pocket. Commercial construction loans are nowadays available from many lenders and many solutions come with very favorable conditions for the borrower – here is how these loans work:
- Differences compared to most other loan types – with a commercial construction loan, the borrower usually does not have upfront access to the entire sum borrowed. Based on the scheduling in the construction plan, the borrower and the lender will work out a draw schedule together and the borrower will receive partial amounts when specific milestones are reached;
- Periodic inspections – whenever a milestone is reached, the lender sends their own inspector to check the quality of the executed project phase before releasing the next loan portion. The lender will also perform a final inspection when the final phase is complete;
- Interests – typically, the borrower will pay interest only on the amounts already released.