Tuesday, August 11, 2009

Think of Commercial Mortgage When You need Funding for Your Business-It’s A Better Alternative to Business Loan



Commercial mortgage is a type of business loan that a business owner uses to fund his requirements for acquiring new assets to expand his business. It’s quite similar to residential mortgage. The lender uses the borrower’s business property as collateral. The reason why more and more businessmen opt for this loan is that it provides the best way to fund the acquisition of business properties and also for other business purposes. The interest paid on it, is generally tax deductible. The interest rate with this loan is comparatively lower than unsecured business loans. The income that is generated from the property is used to cover mortgage payment. The normal period or term for this loan is longer than its other counterparts. Generally, the period is 10 years with a thirty year paying off or amortization. This means that the loan payment is same as a 30 year loan but in case he wishes to sell it, he’ll have to do that at the 10 year mark.

It not only gives you a huge amount of capital to fulfill your business needs but also allows you to fine-tune the repayment structure according to your convenience. It is a gainful way of obtaining fund for various business activities. You can also raise extra money to fund your other business activities using this mortgage. The approval of your loan depends on some factors like the credit record of your business and repayment capacity. For this, your last 3 years of audited financial statements, profit and loss account, balance sheet and cash flow statement will be needed to apply for this loan. This is an easier alternative to business loans. There are mainly two types of rates that you can choose for repayment namely, fixed and variable.

7 comments:

  1. For real estate investors, hard money from the house of Blueh2ofunding.com becomes quite a personalised option when it comes to raising funds. As opposed to bank loan, it involves less complications and offers more benefits.

    ReplyDelete
  2. The defaulted student loans help the borrowers regain their good credit rating and recover from the verge of financial as well as mental hardships. Come to us, get rid of the default loans and regain financial independence.

    ReplyDelete
  3. The retirees have no other way but to live on the scanty amount of income. They are always in favor of earning the lowest risk but receiving the highest return. A variety of our retirement annuity options is the safest and secured alternative to any high risk investment but you will get a steady flow of income in future to fight with any ensuring adversity.

    ReplyDelete
  4. It is not easy to get a cheap auto insurance that requires you to make small monthly payments. It will pay for any damage to or repair of your car. At Sunsetplazains, you will get access to many insurance providers and their policies.

    ReplyDelete
  5. With an increase in the customer base, you need to improve the way of customer service. We, an industry-experienced fulfillment company, offer professional fulfillment service to get it done with precision. Visit tfstore.co.uk to know more about us.

    ReplyDelete
  6. I am interested for guest post in your blog, Please let me know if you are interested by kylasmith7@gmail.com. Thanks.

    ReplyDelete
  7. Hello,

    I am Anya Bennett a financial writer. I write mainly on finance related topics like debt, loans, insurance, investment and so on. While surfing through the Google on account of finding an apt blog for writing articles, I happened to come across your blog. To my knowledge, I acknowledge its resourceful, rich and quality contents and also has an eloquent and vivid presentation. I must appreciate your hard work and your adherence which is portrayed well enough on you site and wish you a very good luck.

    I was wondering if you can allow me to write for your site/blog. I assure you to provide you an article that is absolutely unique and congruous as well, so that it proves to be useful to your readers. It would be a great thing if you could take a look at the proposal and lemme know what you feel about it. I'll wait for a positive reply from you.

    If you are displeased with my email, I cordially regret in advance.

    My Kind Regards,
    Anya Bennett.

    Email ID: anya.bennet@gmail.com

    ReplyDelete