If you are looking for a commercial mortgage for the first time, your first thought might be to go to the bank for advice.
That is always a possibility. But there’s one thing you can be sure of. The bank will try to sell you one of its own products – because that’s how the bank stays in business. And the selection of products you find at the bank will be just a tiny drop in the ocean of what’s actually available to you.
When you actually realise the vast array of products available, you will probably feel totally confused. Where do you start? Well, that’s where an independent commercial mortgage broker can help you.
A good independent commercial mortgage broker will be able to look carefully at your requirements and the nature of your business. He/she will then be able to advise you as to what kind of commercial mortgage you need and what kind of lender you should be approaching.
Unlike the bank, the commercial mortgage broker has access to the whole range of lenders right across the market. Once the broker has determined your specific requirements, he/she will know which lender to approach and will be able to present your case to the lender in the way most likely to get a favourable response. The broker will know what information the lender needs in order to make a decision quickly.
As well as understanding which lender and which commercial mortgage product will be right for you, the commercial mortgage broker will be able to help you out with a structured business package. Often a mortgage on its own won’t be enough, especially if you are setting up a new business venture. The broker will be able to take into account all aspects of your business funding requirements, including banking facilities and commercial credit.
A good commercial mortgage broker will also understand the importance of cash flow and will be able to advise you on such matters as invoice discounting ( a means of borrowing against outstanding invoices) and venture capital – a special type of funding for smaller businesses who find it difficult to obtain funding via normal channels.
Starting up in business is exciting but also stressful. You need someone who can advise you on the best ways to finance your various business requirements without trying to sell you anything! A commercial mortgage is the cornerstone of the financial package. Your commercial mortgage broker will understand what is best for you and how it fits in to your overall requirements.
Please note that the FSA do not regulate commercial loans or commercial mortgages