Introduction
If you are the manager of a company looking for finance sources, you might already hear about the commercial loan mortgage. This option is offered by different banks for companies, and they are designed to help those companies to buy a new office building or to restore an old one. However, as we are talking about a long-term contract that is also expensive, you should determine if it is really useful to take the commercial loan mortgage.
Step 1
Try to compare the rent you are paying currently for your offices with the potential rate you might have for the commercial loan mortgage. In case the rent is smaller, you might consider not buying the building. On the other hand, if you buy a larger building than you need, you might rent the extra spaces for some other companies, and in this case, the rate for the commercial loan mortgage will be paid from those rents. However, you should hire an evaluator and a real estate finance specialist to determine if you really need to buy the respective property or not, and then you should determine if the facility is useful for your situation.
Step 2
It is estimated that a large number of companies applying for the commercial loan mortgage would not receive the respective option. As a result, before looking for financing, you should determine if you really need it.
Step 3
If you have an idea that you think is brilliant, but you need to expand your offices in order to hire new people to put it into practice, you will probably need to find somebody to offer you commercial loan mortgage. The warranty might be the incomes that could be generated from the respective business, but in this case, the bank or the financial institution offering the commercial loan mortgage would probably want to determine the potential of your idea, and this evaluation takes time.
Step 4
If you don’t have any idea and you just need bigger offices, the bank would like to evaluate your financial situation since the latest years, to determine if the respective expansion is useful or not.
Step 5
Some companies would solicit the commercial loan mortgage from the beginning of their activity. It might be discouraging, but a commercial loan mortgage is approved only for 5 % of the companies soliciting this kind of credit. Why? Because it is a huge risk for the bank, and even if this facility is approved, the interests would be significantly higher. You will need some courage to take this loan since the beginning of the company, and you should only do this if you have some pre-contracts signed with some partners that are willing to come in your building.
Tips
This way, you will be able to pay your monthly commercial loan mortgage rates from the rent money paid by those companies. If you have such contracts signed, show them to the bank, as those pre-contracts represent solid warranties for the bank, and they will approve the loan a lot easier if you have those agreements signed.
