Financial Compound has the expertise to help business owners obtain high-leverage commercial real estate financing. Financial Compound can obtain high leverage and low-interest rate financing for businesses that operate within a property they own. Typical terms would be 85% loan-to-value, and a fixed interest rate of 5.75% for ten years, with a thirty-year amortization table.
This long-term, low-fixed-interest rate financing is attractive to business owners who have traditionally borrowed from their business lenders with business assets and other personal property as collateral. Due to the high leverage and unique characteristics of this financing, Financial Compound can facilitate large cash-out refinances and keep the borrower’s mortgage payments the same as before.
Normally, when a business needs additional capital to run, the business owner turns to its business lender for products such as accounts receivable, balance sheet, or inventory financing. However, a business owner can often borrow with far more attractive terms when the real property is considered. A long-term or short-term mortgage often fits well with a business owner’s capital requirements.
Commercial mortgage broker Financial Compound also sees many situations where a business owner has a long-term lease for their property, with an option to purchase. The purchase option is often at an attractive price, which further supports a mortgage product being an efficient financing type for the business owner.
We welcome business owners who qualify for these programs to work with us to consolidate much of their business debt into cutting-edge, fixed-rate first mortgage financing.
Business loan rates are also available with cutting-edge floating and fixed interest rates. A typical floating rate business finance loan might be at Libor plus 1.75%. This loan structure allows the borrower to reset its Libor index at increments of the borrower’s choosing between 30 days and six months.
Depending on the characteristics of the transaction, business finance loans can be the best financial product execution for the property owner. An experienced commercial mortgage broker can help the business owner research business loan requirements and provide the business owner with a recommendation.
These are some of the most popular options for small businesses. Loans can provide the capital that businesses need to invest in growth or expand their operations. Additionally, loans can be used to finance one-time expenses, such as new equipment or renovations. While loans can be a helpful way to finance a business, it is important to remember that they must be repaid. Interest rates on business loans are often higher than rates on other types of loans, so it is important to carefully consider the terms of a loan before taking one out. repayment schedule, as well as any fees or penalties associated with late payments. By taking the time to understand the terms of a loan before signing on the dotted line, businesses can ensure that they are making the best financial decision for their needs.
There are a variety of different loans available, each with its own terms and conditions. Depending on your business’s cash flow, you’ll want to choose a repayment schedule that you can comfortably manage. By carefully considering these factors, you can ensure that you choose the right loan for your business. A commercial mortgage broker such as Financial Compound can help you navigate this process. With the right loan in place, your business will be able to thrive and reach its full potential.