Has it always been your dream to get your name enlisted among Fortune 500s top business people? Do you have the acumen and the passion for your business and of course that perfect business plan, which is so crucial to any business success? Yes? Then, what are you waiting for? Get started! Oops! There is one hitch. You dont have the money to buy the commercial property that you have your eyes set on.
Guess what! There is a solution to this and the name of the solution is commercial mortgage. A commercial mortgage is quite similar to a residential mortgage. It implies drawing out a loan to purchase a property for commercial purposes. The property may be a piece of land that you want to carry out constructions on later, or a factory, a retail store, or even an eating joint. But there is a catch. Whatever property you may buy, you have to pledge it as security for your mortgage. This gives your lender a legal claim on your property until you pay back the loan.
A commercial mortgage can not only be used to finance the purchase of buildings or land for commercial purposes but may also be used for buying business assets like plant or machinery.
A commercial mortgage may be availed for anywhere between 12 months to 25 years. You also have the option of choosing between fixed rate and variable rate mortgages. A fixed rate mortgage affixes your monthly installments, while a variable rate mortgage varies the amount that you have to pay on monthly basis.
A commercial mortgage proves to be a much favourable alternative than an unsecured business loan. The reason behind this is that commercial mortgages carry a lower rate of interest because of the security they bring along. But of course your own credit worthiness has a far deeper impact on the interest rate. An exceptionally good credit record is rewarded with a low interest rate while a poor credit score will make you suffer the repercussion of an exorbitant rate of interest.
Commercial mortgage seekers who have a poor credit score can take heart in the fact that there is an ever-budding market of sub prime lenders who exclusively deal in the business of lending to people who arent blessed with exemplary credit scores. Whats more there are a lot of online sites that allow you to apply online for an adverse credit commercial mortgage.
So, dont delay your dreams anymore. Avail a commercial mortgage and get your hands on that ever-elusive capital.