| ial mortgage loans are not available to persons, but | | | | years but they can be extended for as long as 25 |
| rather to businesses, which include partnerships, | | | | years. |
| incorporated businesses, limited companies, etc. The | | | | The commercial mortgage loan amount and interest |
| business must be sound financially and the process to | | | | rate that you can receive is a direct correlation of the |
| verify the business income can be more complicated | | | | credit worthiness assessed by the lender with respect |
| than verifying the credit worthiness of a specific | | | | to your ability to repay the loan. If you have an |
| individual. That is why traditional commercial mortgages | | | | excellent business record with a verifiable profit and |
| can take six to nine months to underwrite. | | | | loss business statement then you will have little trouble |
| Commercial loans are procured for a variety of | | | | getting a commercial mortgage at an attractive |
| reasons: to buy the premises of an existing business, | | | | interest rate. |
| to make improvements or enlarge existing premises, to | | | | Commercial loans are not provided without extensive |
| make commercial and residential investments or to | | | | scrutiny regarding your business stability and |
| develop the existing property in other ways. An | | | | profitability. The Lender usually wants to see your last |
| example would be to buy already constructed | | | | three years of audited financial statements including a |
| business premises, like offices, shops, restaurants, or | | | | Profit and Loss statement, balance sheet and a cash |
| pubs. Additionally, they can also be used to buy | | | | flow forecast. Favorable business information is critical |
| business assets such as plant equipment and | | | | to the lender and to you because, as stated earlier, if |
| specialized machinery. | | | | you default on the loan the lender can repossess your |
| The Interest rates for commercial mortgages are | | | | property and sell it to repay the outstanding mortgage |
| generally higher than those for residential mortgages | | | | balance. |
| but lower than interest rates on unsecured business | | | | The best place to find commercial mortgage loans is |
| loans. A fixed-rate loan is the most common | | | | on the Internet. There are enormous numbers of |
| commercial mortgage. It is similar to the fixed rate | | | | commercial lenders vying for your business and they |
| home mortgage loan in that the interest rate remains | | | | all advertise on the Internet. It is possible to compare |
| constant throughout the term. However, the term for | | | | many loan quotes side by side and determine which is |
| most commercial mortgage loans is between 3 and 10 | | | | best for your financial situation. |