XL Business Finance
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Business Property Finance

Business property finance, Commercial mortgages, Mortgage solutions, Manchester, Cheshire, London

Business Property Finance during the last few years has probably been the most difficult aspect of business finance. As we know the banks have been offering very few commercial mortgages during the recession and credit crunch. Whilst banks have always suggested that they are open for business in reality his couldn’t be further from the truth.

Once upon a time so long as you had a 20-30% deposit commercial mortgages were available for just about anyone irrespective of their credit standing. This is certainly not the case now and the banks are looking for stricter criteria when it comes to business property finance or commercial mortgages.

How much deposit do I need?

The most important aspect of organising business property finance is to prove serviceability of the owner occupier or the tenant. Financial institutions will expect to see a certain amount of cover from the profitability from the business to ensure that the monthly payments are achievable and maintained even in a down turn. It is now longer possible to go to a bank and organise business or commercial property finance because you have a 50 or 60% deposit. Unless you can prove you can make the monthly repayments your proposition will not get past first base.

Different banks and financial institutions have different criteria and a good commercial mortgage broker will know exactly who is blowing hot and cold. And believe you me different banks can be strong in one sector one month and pull out the month after. It is to do with their experiences from month to month and bad or good experiences can quickly change lending policy.

See also:

Commercial Mortgages

Professional Practice Loans