There are many good reasons why commercial property finance loans may be suitable for your business. Your business may have plans to expand into the suburbs, or your current commercial property may be too small for an even larger workforce. Or maybe you have decided to get your business off the ground but don’t have the money to invest in your new building. Commercial Property Finance is a great way to get the cash you need to make it all happen.
Commercial property finance works in a very similar fashion to a home loan. You will be borrowing a certain amount of money to use to purchase the premises on which your business will operate. Like your home, you will want to borrow a sizeable amount so that you can pay all your expenses and make a profit before you repay the loan. Like your home, the worth of your commercial premises will vary over time. Many businesses choose to borrow a smaller amount at first, building up their business credit to increase the value of their premises over time.
Another type of commercial property finance is called a bridging loan. This type of short-term finance allows you to work with existing residential mortgages to help you buy a piece of property. Some of the companies that offer bridging loans are lenders that specialize in providing residential mortgage products.
To obtain commercial property finance, you will need to apply for both residential and commercial mortgage products. If you already have a mortgage, ask your lender whether they offer this kind of short-term financing product. If they do, it will usually be easier to obtain. In some cases, you may also be able to get a discount through a mortgage that already contains a repayment holiday. Your mortgage provider should be able to give you specific details about any discounts that may apply.
Commercial property finance can also come in merchant finance, which is offered by some of the biggest property development companies. These companies typically act as personal investors and make all of the business decisions themselves. These companies can be an excellent source for almost any kind of commercial mortgages, and they can provide the funding you need to finance your new premises. If you have been looking into new premises for your business but have yet to find a lender willing to lend you money, this could be an ideal option for you.
Several lenders offer property development finance to new businesses. Although the interest rates offered will usually be higher than a typical short-term loan, these lenders will be able to provide you with a chance to secure the money you need to buy your new premises. You can be sure that these lenders will be able to help you through the entire term of the loan, making it easier for you to repay in the future.
One of the easiest ways to get commercial loans to property developers is to approach an independent broker. Independent brokers work exclusively with leading property developers and will be able to show you all of the different options available. They will present you with various options and even assist you in the application process to not miss out on anything. Independent brokers can offer a short-term finance solution to a wide range of commercial properties, including some not suitable for traditional loans. They can even help you secure the best rates, allowing you to make the most of your finances in the short term. If you are interested in obtaining finance quickly, however, you should take the time to compare the available rates from these lenders with others to ensure that you are getting the best deal.
Commercial property developers can also consider securing auction finance as a possible option to secure the finance they need. Secured auction finance is available from several lenders, making it very easy to compare the rates and the terms of each loan. Many secured auctions will require that the property developer has the security of a mortgage, proving to be a great selling point for those who have been struggling to get the finance they need. However, secured auction finance is subject to availability and will only be a good choice for those looking to secure the loan within the next few weeks or months. For those looking to borrow a large sum of money over the longer term, this is not usually a viable option.