COMMERCIAL LOANS What are Commercial Loans

Why use a broker to find a commercial loan? There are many financial providers who lend to the business sector Lenders have differing criteria for an application to be successful Lenders have differing terms and interest rates You probably do not have the time to extensively research the market before committing to a commercial loan Depending on the reason for application a business with poor credit history or a self employed person with little proof of income may still be granted a commercial loan although it will most likely be at a higher rate People with a profitable status are usually offered a better rate.

Why use a broker to find a commercial loan?

There are many financial providers who lend to the business sector

Lenders have differing criteria for an application to be successful

Lenders have differing terms and interest rates

You probably do not have the time to extensively research the market before committing to a commercial loan

Depending on the reason for application a business with poor credit history or a self employed person with little proof of income may still be granted a commercial loan although it will most likely be at a higher rate

People with a profitable status are usually offered a better rate.

CAVEAT SHORT TERM LOANS ~ The loan amount is secured against property Short term funding for businesses or individuals until next stage funding can be obtained Often used to close quickly on commercial real estate purchases Also often used to take advantage of a short term opportunity in order to secure long term financing May be used to retrieve real estate from foreclosure. Often obtained by developers to carry a project while permit approval is pending

CAVEAT SHORT TERM LOANS ~

The loan amount is secured against property

Short term funding for businesses or individuals until next stage funding can be obtained

Often used to close quickly on commercial real estate purchases

Also often used to take advantage of a short term opportunity in order to secure long term financing

May be used to retrieve real estate from foreclosure.

Often obtained by developers to carry a project while permit approval is pending

Caveat Loans are used in venture capital and other corporate finance to : Inject small amounts of cash to carry a company between successive major private equity fundings To carry distressed companies while seeking a larger investor or buyer As a final debt financing to carry a company through the immediate period before an initial public offering

Caveat Loans are used in venture capital and other corporate finance to :

Inject small amounts of cash to carry a company between successive major private equity fundings

To carry distressed companies while seeking a larger investor or buyer

As a final debt financing to carry a company through the immediate period before an initial public offering

COMMERCIAL MORTGAGES ~ Allow a business to purchase property, land, or to purchase an ongoing concern Long term financial deals of varying duration and repayment schedules Calculated on the ability of the business to make the repayment and usually require a minimum deposit of 20% may be used as a re-mortgaging facility to cover expansion and refurbishments

COMMERCIAL MORTGAGES ~

Allow a business to purchase property, land, or to purchase an ongoing concern

Long term financial deals of varying duration and repayment schedules

Calculated on the ability of the business to make the repayment and usually require a minimum deposit of 20%

may be used as a re-mortgaging facility to cover expansion and refurbishments