Commercial Mortgages And Loans

While banks and financial institutions are often made out a the “bad guys” the reality is that they are the lifeblood of any business. Not only does loans and mortgages enable businesses to start up, but they also allow businesses to grow. Like any other financial vehicle, in the right hands it can be very powerful but in the wrong hands it can be a real nightmare and many amateur business people got their fingers burnt in the past.

When you first start a business you will need to get a commercial mortgage. Because you have no financial history as a business the banks will look at the business owners’ personal history to see if they are willing to grant the mortgage. The actual business plan and a variety of factors all play an important part in this assessment. Unfortunately the post-recession economy is making commercial mortgages harder to get than ever before.

If you are an established business however and you need capital quickly, then your existing commercial mortgage can serve you well. If your business is growing rapidly and you need capital to fund it then you can apply for a commercial second mortgage. Its usually assessed against your existing business and if you have a sound financial record as a business you can get large sums of money with relative ease. Be warned though – these types of business loans come at a price. The repayment periods are usually much shorter and the repayments much higher. Make sure you can afford it before you even consider this method of funding.

If you are finding it impossible to get the funding to bring your new business off the ground then there is another option that is probably less risky – although there is an immense amount of paper work involved. You can apply for a small business grant. The government has several programs available to help stimulate small business development, but there are some pretty strict criteria and you need to make sure you qualify. Often these grants are given and no repayment is necessary.

At the moment there are a lot of small business grants available to women and whether its at state level or at government level the intention is clear – this economy needs small business development. In the end, if you have the resolve and you are determined to see your idea materialize as a business, you will find the funding somewhere. It’s a cliché, but where there’s a will, there’s a way!