subject: Commercial Finance – To set up a New or Old Business [print this page] In the past few years, commercial finance industry has experienced an exponential growth. The number of entrepreneurs starting their own business is on the rise. Hence, there are plenty of choices offered to a business owner to obtain quick finance. These loans are provided to you on pledging a commercial property and not residential property unlike your home loan.
Mortgage brokers work with several other lending institutions and will increase your chances of obtaining better loan rates and terms. These mortgages let you purchase a new property, refinance an old one or set up a new business enterprise. Usually, a lender will require a sound business plan for a start up business. There's lot of risk involved in lending loans to a new business starter. Hence, a business man must draft out a sound business plan which reflects a good financial standing. With low risk involved better will be the loan rate.
Advantages of commercial mortgage:
If you opt for a fixed rate mortgage, your loan payments will be fixed.
You will not be subjected to any hike in loan rates
Enjoy tax exemption with commercial loan interest rate
Cut down on your monthly payments by subletting your property. You must take your lender's approval for this.
You are free to sublet your property, use up the loans borrowed to set up a pub, restaurant, factory or any other commercial enterprise. Ask your lender or broker the range of loan options open before you. It is better to compare the loan terms and conditions before you sign up for one.
Whether the money is to purchase a new property, a second property or for expansion, you are still approved for business loans. Many times it can be difficult for a person to obtain a business mortgage when they are first starting out a business and if their credit history is short of perfect, then may be they are repeatedly turned down for funding help. By comparing online, you will get better loan rates.
Commercial Finance To set up a New or Old Business
