How a Commercial Mortgage Can Help Your Business
A commercial mortgage or commercial remortgage is a business loan which is secured against a commercial property.
Commercial mortgages are often used to buy business premises, such as offices, shops, restaurants, or pubs.
But they can also be used to buy other business assets such as plant or machinery.
As well as being a useful way of financing the purchase of business premises for a new business, commercial mortgages can also be an excellent way of funding the expansion of an existing business.
A commercial mortgage can also be used to fund investment in land or property which will be used for commercial purposes.
A commercial mortgage can be used to buy most types of commercial buildings, such as shops and offices, for both new and existing businesses.
The interest rates on commercial mortgages tend to be lower than the interest rates on unsecured business loans and the repayment terms are usually longer. This makes them useful for all sorts of business financing requirements.
What About a Remortgage?
If you already have a commercial mortgage on your company's business premises, you might find you could benefit from remortgaging.
A commercial remortgage allows you to unlock some of the equity that is currently tied up in your commercial property. It could also be a chance to switch to a more competitive, cheaper mortgage, especially if your or your company's credit rating and business history have improved since you took out your original commercial mortgage.
The money you free up through a commercial remortgage can be used for all sorts of things for your business. For example, you could purchase additional stock, or invest in new machinery or other fixed assets such as vehicles. Another use for the extra money can be to pay off outstanding bills, or clear other borrowings such as the company's overdraft.
Here are some typical uses for a commercial mortgage or remortgage:
- Borrowing money to buy a shop
- Raising finance to purchase an office building
- Buying a pub
- Financing the purchase of a restaurant
- Buying a hotel
- Buying a house to convert to a Bed & Breakfast (B&B)
- Raising finance to buy an existing business
- Clearing a business overdraft
- Improving business cashflow
- Buying new plant or machinery
- Financing the purchase of company vans and other vehicles
- Borrowing money to buy extra stock for your business
- Funding the expansion or refurbishment of your offices
- Borrowing money to pay for training
- Buying land for business purposes
Further information on commercial mortgages and business loans can be found at the Online Commercial Mortgages website.
Copyright 2004 David Miles. You are welcome to reproduce this article on your website, so long as it is published "as is" (unedited) and with the author's bio paragraph (resource box) and copyright information included. In addition, all links to external websites must be left in place.
David Miles is the editor of a number of personal finance and business websites including The Cash Clinic and Employee Contracts.
Latest News
Ben Bernanke: Fresh Attack on Mortgage Rates U.S. News & World Report, DC - Lower rates will enable some borrowers to refinance out of adjustable and into fixed-rate loans. But those who need to refinance the most have homes with ... Long Bond Returns Most Since 1995 Amid ‘Bubble’ Talk (Update2) Treasury Yields Hit Record Lows, But Will it Last? REFILE-TREASURIES-Bonds rally, helped by weakening economy |
Looking to refinance? Now might be the time Boston Globe, United States - Mortgage rates have been stubbornly high for quite some time but the government's recently announced $800B plan to bolster mortgages and consumer loans had ... Are looking for a new mortgage? We want to hear from you |
Interest rate drop opens door to refinancing Austin American-Statesman, TX - By Shonda Novak, MS Taboada The recent sharp drop in mortgage interest rates is creating a window for homeowners nationwide to refinance and providing an ... |
Md. sees drop in loss of homes Baltimore Sun, United States - Many borrowers took on mortgages at the height of the housing boom, believing they could eventually refinance to a lower loan rate or sell their homes if ... |
 Straits Times | Mortgage rates fall, but many borrowers will have trouble qualifying Los Angeles Times, CA - Jeff Lazerson, a Laguna Niguel mortgage broker, said all the customer calls he received Tuesday were from people seeking to refinance, not buy homes. ... Mortgage-market revival: Try, try again US move cuts mortgages to lowest rate since February Last Call for Smart Homeowners |
Self-Employed Are Frozen Out of Mortgages Wall Street Journal - He's been unable to find a lender willing to refinance the $900000 adjustable-rate mortgage on his primary residence, which he says is worth around $1.1 ... |
Mortgage Delinquencies Set to Soar: Report Housing Wire - “The credit ding makes refinancing that much more difficult,” said one source that spoke with HW Tuesday morning, a loss mitigation counselor at a large ... |
New mortgage crisis looming, experts caution San Bernardino Sun, CA - And since investors no longer want to buy commercial mortgages, banks are reluctant to write new loans to refinance those facing foreclosure. ... |
A recession Q&A Newsday, NY - ... take measures that will result in lower mortgage rates, "so people can afford to buy up housing inventory and refinance mortgages at affordable rates. ... |
Are You An Idiot To Keep Paying Your Mortgage? NewsNet5.com, OH - If you took out a home-equity loan or did a cash-out refinance to buy a car, you'll still owe tax on that debt if it is canceled. For state income taxes, ... Some buyers may see higher loan rates Global slowdown to drive market direction |
Resources
-
bad credit home loan, Refinance Mortgage loan, cash loan, cash advance loan, california home loan, p
Online bad credit home loan, Refinance Mortgage loan, cash loan, cash advance loan, personal loan, debt consolidation loan, payday loan, bad credit loan, home improvement loan, second Mortgage loan, online loan, unsecured personal loan Search.