Although financial experts have declared an official end to the recession; the economy is far from out of the woods and as a result; banks are continuing to restrain their loan lending, tighten their requirements and reject a large proportion of loan applications particularly from the small and medium businesses.
As the economy continues to remain trapped in financial struggle; the small and medium business owner is viewed as far too much of a financial risk and as a result, obtaining the ideal and much needed commercial finance lending can be viewed as far too difficult but is all hope actually lost?
Business loans have always been difficult to obtain however, in today's economy the independent lender and in particular the commercial mortgage broker has shone through to provide the ideal business lending whatever the situation may be.
A commercial mortgage is deemed the most popular form of business lending and can help a new or existing company to procure the ideal commercial property. As a long term financial agreement; a commercial mortgage can last for up to twenty five years and is made available at a fixed rate to enable steady cash flow issues. By providing sufficient personal and business income details, business financial agreements, projections and cash flow documentation a specialist broker will determine your loan credibility and whether such a long term agreement is the best option. If agreed, a commercial mortgage can be the ideal form of business finance, enabling the success of business and what's more is that, as a form of long term finance interest rates are often relatively low.
For those businesses in need of urgent financial aid whether to assist with a debt issue, cash flow problems or perhaps even to secure a deal or the purchase of a new property; a bridging loan is considered the ideal, short term solution.
As a form of short term lending, a bridging loan can often be secured within a matter of days, exact amounts that can be borrowed under such terms will of course be dependent upon lenders. As a short term agreement, often borrowed between one to twelve months; a bridging loan is considered as high risk and thus the application will be an intense procedure and equity to secure the loan will be required. As such a short term, risky loan the interest rates of a bridging loan will be undoubtedly high.
Despite the continuing loan rejection amongst banks; the commercial mortgage broker is able to assist, whether you have been previously rejected or not, in finding the right business loan for you. As an independent company; brokers are not driven by the hard commission based structure of banks but in fact effectively work for the benefit of a business meaning that, long term success will always be taking into account when determining financial solutions.
The commercial mortgage and bridging loan are just two examples of business finance however, bear in mind that whichever option you select for your business; interest rates will vary depending on the borrowed sum and agreement length. Ensure to discuss all available options and interest rates before you agree to anything or you could find yourself facing risky, fluctuating payments.