unsworthblue
Well-Known Member
- Joined
- 27 Oct 2008
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commercial finance is much more expensive than your standard mortgage or a buy to let mortgage,surely not a monthly repayment of nearly 3 times as much,anyone an expert please inbox me
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Commercial mortgages
- Thread starter unsworthblue
- Start date
trotsky
Well-Known Member
It depends on the considered risk of your business. Unlike a normal mortgage where you have a secure job and/or health (age) to continue working, a business mortgage relies on the business to repay the loan. For example, a freehold pub is now a high risk because as we all know, pubs are failing at a very high rate.
Business mortgage rates vary greatly, so well worth shopping around. Your business plan will also have an enormous influence on the rate - so make sure it looks professional..
When I got a mortgage for my first pub, I put forward a business plan with a forecast of a 'worse case scenario' showing that I could still afford the mortgage on expected minimal trade. I did an expected income based on five punters on average in the pub spending £X per hour. The bank manager (it'll be a business manager now) told me that he was impressed but could not allow the loan. He suggested I came back and saw him in two days but to make the 'worse case' figures seven people spending £2X. I did and it got approved!
So the finance world is one big gamble for them and you. Good luck .... and dress smart with a decent haircut ;-)
Business mortgage rates vary greatly, so well worth shopping around. Your business plan will also have an enormous influence on the rate - so make sure it looks professional..
When I got a mortgage for my first pub, I put forward a business plan with a forecast of a 'worse case scenario' showing that I could still afford the mortgage on expected minimal trade. I did an expected income based on five punters on average in the pub spending £X per hour. The bank manager (it'll be a business manager now) told me that he was impressed but could not allow the loan. He suggested I came back and saw him in two days but to make the 'worse case' figures seven people spending £2X. I did and it got approved!
So the finance world is one big gamble for them and you. Good luck .... and dress smart with a decent haircut ;-)
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