SimplyFinance - Commercial Mortgage

Types of Business Funding

2007-08-05T23:00:00Z

Starting your own business is exciting and challenging. Unless you have a large personal savings, or are independently wealthy, chances are you will need to secure funding for your business. There are several options for you ranging from business loans, venture capital, government grants, tax credits, to personal credit cards. We’ll look at each of these in greater detail to assist you in determining the best source of funding for your business.

Depending on the nature of your business you might consider a grant. A grant is usually partial funding for a business that you will only need to pay a portion or none back to the lender. Grants are provided to individuals and businesses by the government, regional development agencies, the European Union, business link, chambers of commerce, universities and even charities. Certain industries or locations that are in need of revitalization, businesses that focus on research and development, inventors, farming, and others are all eligible for grants. Typically there are terms to the grant that you must adhere to in order to keep the funding and/or not repay the money.

Venture capital is another common form of business funding. This type of funding is done by companies, trusts, or individuals, also called ‘Angel Investors’, that provide money, start up capital, or loans to businesses as investments. Often its is given to existing companies that are doing well that seek to expand and have a clear business plan with a long term growth potential for both the business and the investor. Often times the venture capital trust or firm will buy out 25-55% of the business. “Seed money” is also provided by venture capitalists, usually with the investor accepting a higher risk with a potential for higher yield.

Another form of business funding is tax credits granted by the government that act as an incentive to companies to stimulate economic growth in various industries. These include businesses that focus on energy efficiency, research and development, and agriculture.

If used wisely, personal credit cards can be used to fund your business. The drawback to using this type of funding is if you are not able to manage your debt it will affect your credit rating. Should you decide to use your credit card, it is recommended they are used for non-essential business items, not for operating expenses or major purchases like a car or equipment and they are paid off each month.

Business loans are one the most common forms of funding for start up capital, to help expand your existing business, or perhaps to refinance debt. The type of business loan to apply for depends on what your needs are. Small businesses can seek funding with a small business loan and many are available for specific industries. Although not all small businesses will be turned away by banks, most banks favour larger or well-established businesses. If you are a small business or a start up, you will need to have excellent documentation, a business plan, and perhaps collateral (such as home equity) to secure a loan from a bank. Business loans are also available for small amounts, called “micro” loans for economic development for a certain geographic areas and for specific industries.

When you make the decision to get started with a business loan, fill out our short form, and a representative from SimplyFinance will put you in touch with a business loan lender that will work with you to answer all your business loan questions, and they'll search the market to find the best business loan deal for you.

CLICK HERE TO APPLY FOR A BUSINESS LOAN TODAY!

Commercial Mortgage

2007-07-25T23:00:00Z

There often comes a time in business when you want to maximize your company's financial assets. Taking out a commercial mortgage is one way to accomplish this.

If you want to invest in or buy a commercial property for the purpose of starting a new business or buying an existing business linked with a piece of property (such as a hotel, restaurant, or retail store), a commercial mortgage loan will help you purchase the property you want. Commercial mortgages are also available for those who wish to expand their existing business. Also, the money from your commercial mortgage can be used to invest in residential or commercial property, develop property, acquire a remortgage on your current business property, or to repay outstanding debt, arrears, or CCJs.

Commercial mortgages are generally repayable over a term of 15 years or more. Your lender will require security before they issue the loan, and this security usually comes in the form of the property itself. Commercial mortgages can be gotten from any bank or building society. Even if you have poor credit history, there are some lenders who will offer you a commercial mortgage based on the credit value of your business. Some lenders will do an investigation into the finances, business plan, and long-term financial projections of your company in order to ascertain whether or not your business is stable and profitable. This is done in order to for your lender to be sure that there is a high likelihood that you will not default on your loan.

A commercial mortgage is a large financial responsibility, and lenders are aware of this. Accordingly, they provide a number of services and conveniences to allow your repayment to go smoothly. One such convenience is that lenders often allow payment holidays of up to two years in three month increments. This allows you to take a break from payments if your budget becomes a little tight for a short period of time. Another option is to take a fixed rate commercial mortgage. With one of these, your interest rate will remain static for a set period of time. This allows you to plan ahead with your budget because you will know what your monthly payments are going to be.

The main categories of properties that are eligible for commercial mortgage loans are country properties, health industry properties, investment properties, leisure properties, professional properties, retail properties, and healthcare properties.Some types of commercial properties for which additional security may be required when taking a commercial loan are cafes, factories, shops, offices, residential investment properties, warehouses & light industrial units, guest houses, public houses, B&Bs, wine bar restaurants & take-aways, boarding kennels, riding schools, Bookmakers, accountants, architects, solicitors, and retail properties which include antiques, auctions, art galleries, bakers, bookshops, car showrooms, butchers, beauticians, clothing, dairies, DIY, department stores, dry cleaners, financial institutions, food stores, footwear, funeral directors, garages, gift shops, furniture, garden centers, grocers, hire shops, hairdressers, leisure centers, newsagents, nurseries, office equipment, off licences, record shops, pet shops, sports shops, supermarkets and toy shops. A few types of commercial properties for which additional security is not required when getting a commercial loan are development properties, amusement parks, snooker halls, bingo halls, cinemas, sports complexes, and leisure centres.

If you'd like help finding the best possible commercial mortgage for you and your business, take a moment to fill out our short questionnaire, and a SimplyFinance representative will contact you to put you in touch with a commercial mortgage broker that will search to find the best commercial loan deal for you.

CLICK HERE TO APPLY FOR A COMMERCIAL MORTGAGE TODAY!

How to Find a Commercial Mortgage

2007-08-09T23:00:00Z

There are a number of different avenues available for the funding of a commercial loan. The internet has revolutionized the way in which people shop for the best commercial mortgage deals. There are several online financial institutions that offer financing alternatives to the borrower. It is important to keep in mind that when shopping for the best deal in commercial mortgage rates that there are three options for financing and approaching a commercial real estate investment. The three options are to choose a commercial mortgage bank, a commercial mortgage broker, or a “middle man” lead website. Each of these options should be considered when searching for the best commercial mortgage deal in the UK.

A Commercial Mortgage Broker

When trying to find the best commercial mortgage rate, it is critical that one partners themself with an experienced and professional mortgage broker. A commercial mortgage broker can assist a borrower through all of the phases of the investment process. The services of a commercial mortgage broker include finding the right commercial property, seeking competitive commercial loan rates, preparing the paper work and closing the deal within a specific amount of time and on certain terms. There are several advantages to working with a commercial mortgage broker. One of the biggest advantages to working with an experienced broker is that the broker is able to use their knowledge in order to accelerate the pace of financing the deal on the commercial property. This allows the borrower to focus on running their business. One of the disadvantages of working with a commercial mortgage broker is that the broker may not know the particular commercial market that the borrower is involved in. Also, the broker may not always have the best interest of the borrower at heart. It is important that if a broker does not suit each of your commercial financing requirements that you consider choosing a commercial mortgage bank.

A Commercial Mortgage Bank

A borrower’s second option for receiving financing for commercial property is to follow a more traditional route of choosing a commercial mortgage bank. A commercial mortgage bank will be experienced in the area of finding the best commercial mortgage deals on the market. A disadvantage of choosing to partner with a commercial mortgage bank is that this route usually offers the borrower the smallest amount of mortgage deal options. In addition, the borrower is responsible for finding the commercial property and then filling out their own paper work. In many ways, though, a commercial bank loan makes sense. A commercial mortgage bank usually specializes in different types of commercial mortgage loans such as construction loans. A commercial mortgage bank can give a borrower sound advice on the best commercial mortgage deals that the borrower can choose from.

A “Middle Man” Lead Website

There are a variety of “middle man” lead websites that are designed to allow a borrower to compare various commercial mortgage deals at one time. A “middle man” lead website can put a borrower in direct contact with a lender located in the UK. A “middle man” lead website cannot help a borrower receive a commercial mortgage but can instead broker a deal between the lender and the borrower. The “middle man” lead website is dedicated to connecting potential borrowers with potential lenders. This is a nice middle route that can help a borrower find the best commercial mortgage deal.

Once you've carefully considered all of your commercial mortgage options, and if you've decided that you'd like SimplyFinance to help you find the best commercial mortgage broker for you, take a moment to fill out a simple form, and one of our representatives will introduce you to a commercial mortgage broker that will be able to find the best commercial mortgage deal for you.

APPLY FOR A COMMERCIAL MORTGAGE TODAY!