Commercial Mortgages

(Author: tsangers | Article Views: 36 | Word Count: 293 | Published: May 2nd 2008)

Get Html Code Download PDF Print View Subscribe to this Author

News on Commercial Mortgages

The best way to finance the purchase of land or building for business purposes is through a commercial mortgage commercial mortgage as it provides the most flexible and affordable finance solution.

Commercial mortgages are specialised due to the fact that until the loan has been repaid in full the lender has a legal claim over the property. The commercial property or land can be repossessed and sold if the repayments are not made, in order to repay the outstanding mortgage balance. Mortgage loans like this are purposely made for purchasing any commercial property for business purposes like warehouses, factories, shops & offices.

Commercial mortgages can also be used for taking over an existing business, purchasing a brand new building or buying land. Although they often come with higher interest rates and more variables than residential mortgages, commercial mortgages are more flexible and can carry extra incentives for borrowers.

Most building societies and banks offer commercial mortgages, but you must satisfy the lenders criteria. The primary criterion is the ratio of cash available to the required loan payments. Some lenders may accept applications where there is a poor credit history, but most require a positive personal credit rating and evidence that your business is stable and profitable. Most will apply a loan-to-value ratio and will expect you to invest an amount of your own money into the purchase.

The terms of a commercial mortgage will depend largely on the type of business you're running and the type of premises or land you want to buy. When arranging a mortgage, consider its effects on your cash flow and assets as the length of the loan can vary from 5 to 30 years.

About the Author

I write on behalf of General Finance Centre

Source: http://WhoisArticleDirectory.com

Staff: Edit This Article

1: How to Establish Business Credit for Your Home or Small Business

2: Online Calendars: What are They?

3: Payment Card Industry Data Security Standard (PCI DSS) - someone else's problem ?

4: Finding Good Employees and Getting Them to Stay

5: Why Aggressive Marketing Is So Important To Your Home Based Business

6: Make Money with Freebie Sites

7: Data Cleansing

8: How to Ensure Your Coffee Shop is a Success!

9: Grow Your Small Business in a Bad Economy

10: Home Business Ideas You Can Use To Start Your Home Business Today

Rating: Not yet rated
Login to vote

Comments

No comments posted.

You do not have permission to comment. If you log in, you may be able to comment.