If you are now running your own business, you will probably seeking for commercial loans to expand your business or simply get the money to boost up your financial cash flow. These loans are different from home loans or any loans else, it's even harder.
The loans that banks are prepared to lend depends on various factors such like the security you have to offer and your capacity to fulfill your repayment obligations. The more success of your business or strength of your cash flow, the more banks like to lending loans to you. This is quite annoying to an entrepreneur, in fact, they want to getting help from lenders to make their business more success and establish. But in reality, lending a business loan is an investment to them.
Do you know how much can you borrow from lenders? Below are some guide, just for reference : -
- Lenders will lend 35%-65% from the purchase price of your business.
- If you owned a reputable franchise, the lending amount is around 50% - 70% of the business purchase price
- Stand alone business type will probably get from 35% or more, depend cases.
Talk about the interest rate, if you pledged your residential property as collateral, you will probably get the lowest interest rate. For commercial property, the interest will be higher. The highest interest rate offer go for pledge business assets as collateral.
Whether you are getting a business loan to your business or buying a new business, you should engage an experience mortgage broker who deals with business owners, and review completely of your current loans structures. This will saving your money and help in your cash flow.
For more loan information for commercial, please check out Loan for Commercial
or Business Loan Guide instead of Commercial Loans
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