If you are in any sort of business, you are virtually certain to require a commercial mortgage or commercial loan at some stage. It could be to buy or expand premises for your business, purchase new equipment, increase your cash flow or expand your business in all sorts of other ways.
There are two main ways you can go about looking for a commercial mortgage. One is by going to your bank; the other is by finding a commercial mortgage broker.
Surprisingly, the vast majority of people looking for a commercial mortgage use their bank as their first port of call. Yet the bank has access to only a very few products and these are all its own. So the likelihood of your finding the product that is exactly suitable for your requirements is actually quite small. What’s more, since you are already their customer, the bank has no particular incentive to find you a competitive product.
On the other hand, the benefits of going to a commercial mortgage broker are considerable.
1. Unlike the bank, the commercial mortgage broker can scan all the lenders in the market. What’s more, the lenders are all competing for your custom, which gives you a very good chance of a competitive deal.
2. Using a commercial mortgage broker saves you a lot of time (and time is money!) The broker can find out your specific requirements and use a database to find all the lenders meeting your requirements. This can be done in minutes using special software. The broker will also identify the lenders most likely to accept you, and help you with your application, so time-wasting is kept to a minimum.
3. In the business world, a mortgage on its own usually isn’t enough. The commercial mortgage broker will be able to look at all aspects of your business funding requirements and come up with a full structured business package.
4. If you are new to business, you may not be clear initially what your financial needs are. The commercial mortgage broker will start off by talking through with you exactly what your aims and goals are and what you hope to achieve, and then work out a financial business plan as a context for your mortgage.
5. If you have credit problems, the commercial mortgage broker will identify what lenders are most likely to accept you. This helps you to avoid repeated rejections, which will make your credit rating worse. Don’t forget that there isn’t necessarily a stigma about having credit difficulties – it can happen for all sorts of reasons such as irregular income, difficulty in proving income, or simply being new.
6. When you have selected your product, the commercial mortgage broker won’t just hand it over and leave you to it. He/she will continue to advise you through to completion, and help you with any snags that might arise.
Remember that the commercial mortgage broker is also a business person and understands your business needs. Whatever stage of business you are at, the broker can find the right product for you, encourage you, and save you time and money by helping you avoid expensive mistakes.