Commercial Business Mortgages and Loans
What Is It?
A commercial business loan (also known as a commercial loan) is a loan that a business gets to buy a commercial property.
The borrower is generally a company or business as opposed to an individual and the business may be either a partnership, limited company or incorporated. Assessing credit history and worthiness is somewhat more complicated with this type of financing.
Is It Different than a Residential Mortgage?
Normally the loan to value ration is lower for a commercial mortgage. This means that a lower percentage of the total value of the property is covered by the loan.
Interest rates are higher for commercial loans than for a residential mortgage.
What Are the Advantages?
- A business is not exposed to any sudden, large rent increases
- You may be able to sublet free space, allowing you to generate extra income
- Any increase in the value of the property can increase your access to capital
- You have full control over what changes you want to make to your office space
You Need Cashflow
- Can’t Sleep At Night?
- Don’t have enough cashflow
- Haven’t been in business long enough
- No collateral
- Poor credit history
- Your bank isn’t moving fast enough?
Don’t Wait, Get The Cash You Need!