Need A Loan? Make Sensible Choice
When Do You Need A Loan?
A business man ideally needs a loan when he needs to start another business. Or when he needs to expand the present business. When his business is in properties this would mean the purchase of another property which he can rent out. Or a property in which he himself might run his business from as a part of expansion of business.
This means basically, that there is a property which he is either purchasing then, or which he can use to get a mortgage on for his business purposes. Commercial properties which are let out or used for commercial activities can be kept as security for a commercial loan. This means that the security for the loan will be the property itself.
This kind of loan is called the Commercial Mortgage loan. This is by far the best kind of loan for a businessman. Let’s see why.
Why Is Commercial Mortgage The Best Loan?
There is a property available to keep as security. This means you don’t have to search for a collateral. If the property is earning money or going to earn money by way of rent, then the source of income is also readily available. Hence the two main criteria for securing a loan are satisfied. This is one main advantage of a commercial mortgage loan.
Once the property is in your hands there is ready income from it, so you don’t have to worry about how to pay your monthly payments. In the event of your moving your business from rented premises to the new own property, there is a saving in rent, which again will help in loan repayment.
If you avail the loan from private money lenders, you have benefits like a high LTV of 75%. You also need to pay only a very nominal interest rate of 7.64%.
The procedures are very simple as there is no underwriting formalities. Most private lenders don’t charge early repayment penalty, nor is there balloon payment. You have a 30 year amortized term with a 3 or 8 year fixed period.
A commercial mortgage from a reputed private lender is the best option for a businessman.