Loans That Work For You
Loan for Business
When you need money for purchasing a new property or improving your existing property what do you do? The need may be even for purchase of new machinery in your company. In such cases what is the best way to finance these needs?
Commercial Mortgage Loans
Commercial Mortgage Loans are the best options for a businessman to fulfil his needs of finance. A commercial mortgage loan takes you property as the security or lien and gives you a loan.
The loan amount will be a percentage of the value of the property or popularly known as LTV. The LTV will vary depending on the property and the lending agency.
This would mean that you should be ready with the 20 – 30% amount required to complete the total value. The lending agency will expect you to first put in this amount before allowing you the loan.
The usual terms for repayment will come with a 25 – 30 year term. But banks or some other lending agencies may ask for a balloon payment. Which means at the end of a 5 or 7 year term you have to pay the whole balance amount.
The interest rates will be anywhere between 4 and 6%. The percentage will also vary according to your LTV. If your LTV is high your interest rates can be expected to be high.
There also could be some processing fee for these loans. The amount will depend on the lending agency.
Banks normally have an early payment penalty. Which means you cannot close your loans early.
Why Would It Work For You?
The commercial mortgage loan which is taken from private money lenders will certainly work for any businessman because of the easy procedures and flexible terms.
With them there are no early payment penalties. You close the loan when you want. The LTV is good at 75%. The interest rates are a very nominal 6.74%.
Unlike banks they don’t need any income proof or tax statements. And they need only a 650+ credit score. It can’t be any easier than this.