Adverse Commercial Mortgages
Commercial mortgages have been around
for a long time, but what are Commercial Mortgages?
A Commercial Mortgage is an
effective way to provide finance for the purchase of land and/or
buildings for your company.
But what the market has been lacking is Commercial Mortgages for
people who have credit problems i.e. arrears on loans or credit
cards, defaults or county court judgements.
If a client approaches any of the High
Street Banks for a Commercial Mortgage and they have adverse credit
they will certainly be shown the door - and where do they go now for
that loan to either get that business started or to expand an existing
one?
Adverse Commercial Mortgages are the answer.
We are able to offer loans of up to 80% Loan to Value of bricks and
mortar valuation and all rates are based on Barclays Bank Base Rate.
Main Commercial Lending Guidelines
-
Loan Type - Capital and Interest Commercial
Mortgages
-
Loan Size - Minimum £50,000 - Maximum
£1,500,000
-
Loan Term - Minimum 10 years - Maximum
30 years, repaid by monthly Direct Debit.
-
Loan Purpose - Purchase, Refinance,
Expansion of a business or a commercial investment property.
-
Borrower type - Sole Trader, Partnership
and Limited Liability Companies supported by personal guarantees
of all Directors.
-
Acceptable Tenure - Freehold and Long
Leasehold properties. Leaseholder must have a minimum of 55 years
unexpired at the final maturity date of the mortgage
-
Minimum Property Valuation - £75,000
Loans are available to clients who have
county court judgements, arrears on current loans, defaults etc.
Advantages of Commercial Mortgages
Why would I mortgage my business
premises?
Retain Ownership.
Instead of raising funds by selling an
interest in the property or the business to an investor, you retain
complete ownership of both. The mortgage lender is only
entitled to an interest return on its
mortgage not a percentage of business ownership that an investor would
expect. Also he/she can only exercise the right if
you default. You retain all the
benefits of ownership in an asset that has the potential to appreciate
in value.
Better Cash Flow
A business mortgage gives you access to
capital with minimal up-front payments and the flexibility to design
a repayment schedule that suits your needs.
Maximise Financial Leverage.
Financing your property purchase with
a business mortgage will allow you to use your cash flow for other
pressing needs.
Simplified Cash Flow Management
Commercial mortgage schedules are preset,
making cash management more predictable.
Tax Advantage.
Interest payments on your commercial mortgage
are tax deductible and are made with pre-tax money. Purchases
financed with profits, in contrast, are made with after-tax
money.
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