Whether a sole trade, considering the move into the retail sector, an existing business owner seeking to expand a portfolio or an entrepreneur struggling to maintain the repayments on a current finance agreement; the first three quarters of 2012 have made for anything but the ideal commercial environment.
With continued talk of a struggling economy, banking lending at a low and consumer activity stagnate at best; the retail business owner is in dire need of vital commercial finance but where does the right solution lie?
As lending to small and medium businesses? struggles to improve; the commercial mortgage broker is now, actively available to provide the finance required for start-ups and existing businesses. Considered the seamless, stable and securest form of finance; the commercial mortgage is considered the ideal lending for all retail businesses.
Why A Commercial Mortgage?
In the face of the struggling economy, property rental may seem like the immediate ?must have? solution however, with instability continuing to cloud the economy, rising rent rates, inflation changes and so forth; stability will lie only with a solid and secure financial agreement.
A commercial mortgage, dependent upon the terms agreed between the lender and borrower, can provide security for the duration of the?borrowing?period and in the hands of the right financial specialist; clients will be strictly matched only to the appropriate lender.
The benefits of a commercial retail mortgage include:
- Vital funds for business expansion
- Cash injection
- Fixed Monthly Payment (Ideal for cash flow management)
- Comfortable business growth
- Increased profitability
- Property ownership
Retail Financing
Almost all commercial property can be considered suitable for retail financing however, the common retail businesses that possess the potential to achieve a mortgage include:
- Food Markets
- Full Serviced Restaurants
- Hairdressers
- Bookies
- Newsagent
- Grocery Store
- Furniture Stores
- Clothing Stores
- Toy Stores
- Electronics
Although banks are continuing to withhold commercial finance; the alternative lender is able to assist with whatever the financial requirements will be. Whether you have spent months facing rejection from the high street lender or have only just been faced with the need for commercial finance; the alternative lender is a proven route of success in business finance:
- A potential 100% of the sum required for a new property purchase (dependent on LTV and additional security)
- Re-Mortgaging for those struggling with a current deal or perhaps even looking to capitalise on the low interest rates.
- Additional lending to cover any other financial needs (store changes, new stock purchasing, business rates)
With access to a growing portfolio of lenders, the scope for business lending is far greater with a specialist commercial broker.
The Decline in Lending to the Small Business
Official Statistics courtesy of the Bank of England
What Do I Need To Do?
In order to begin a successful application process for a retail mortgage, your business will need to provide a wealth of information and documentation that will play a part in determining your credibility, and viability for a loan:
- Account records for the previous three years
- Profit and loss predictions
- Previous bank statements (amount will be dependent upon the lender)
- Evidence of successful trading and cash flow figures
- Proof of experience.
- Business proposal if necessary
The amount of information and documentation required will be dependent upon the lender you choose to deal with however; such figures are considered vital in the application process. By analysing as much statistical information as possible, using the LTV or DSCR ratios; the viability and risk level of lending to your business will be easily determined.
Rest assured that, in the event that a commercial mortgage is not deemed suitable for your business; the right broker company will, if applicable, offer alternative financial solutions.
Where Do I Find The Right Commercial Mortgage Broker?
Finding the right lender can be a daunting factor; after-all with trusts in banking at an all-time low; how can you be sure which lender is the most trusted?
When in need of a commercial mortgage, what you must initially consider is the level of experience the lender in question is in possession off; is the company strictly a commercial broker? If so, just what forms of lending do they offer? What experience do they have? Can they provide proven evidence of results?
For many, it may seem viable to consider working with a broker service specialising in all types of mortgages, including residential as that can only mean the experience of the specialists is advanced can it not? Unfortunately, the broader the offering, the less specialised the portfolio and opportunity for lending.
Financial experts argue that, when seeking commercial lending a specialist commercial mortgage broker is ideal. As a company; the level of expertise will be highly specialised and the source of lenders will be refined; providing a far better scope for your retail business to achieve the ideal financial solution.
Taking the Step
The purchase and retainment of a business premises is the logical step for retail success which is why a commercial mortgage is considered the most suitable form of finance. Often running between fifteen and twenty years, your business will have the security of a suitable fixed payment and the end goal of a property purchase; plus points never possible with property rental.
If you are considering taking the step into the retail market, wish to expand your current venture or secure your success during a time of struggle than a commercial mortgage can be the ideal solution for your business.
Why not contact a mortgage broker today and give your retail venture a vital boost?
Source: http://www.charlestonfinancial.co.uk/commercial-mortgage-for-retail/
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