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Buy A Business - Funeral Home And Golf Course Business Loan |
By:
Stephen Bush |
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Buy a Business - Funeral Home and Golf Course Business Loan
by Stephen Bush
A commercial mortgage for buying a business involving a funeral home or golf course is usually a difficult business loan to arrange. Funeral home financing and golf course financing involve problems not found in most commercial loan situations. Refinancing for both of these business categories is likely to be more complicated than the original business financing for purchase.
Fewer Business Lenders - Funeral Home and Golf Course Financing
There has been a significant reduction in local and regional banks offering business loan programs for funeral home financing and golf course financing. This of course compounds the already difficult commercial loan environment for funeral homes and golf courses due to fewer commercial lenders which are willing to provide reasonable commercial mortgage terms.
Buy a Business - Business Opportunity Financing
A commercial loan variation in which commercial property is not purchased involves a business loan to buy a business opportunity. The commercial property in this situation is commonly leased instead of purchased. Like business financing to buy a funeral home or golf course, it is usually difficult to obtain dependable commercial financing to buy a business opportunity.
Business Loan Terms to Avoid - Funeral Home and Golf Course Loans
Some regional and local banks will probably offer short-term business financing instead of a long-term business loan for golf course financing and funeral home financing. Another key term that can vary significantly is the percentage of value for the business financing. When buying or refinancing a funeral home or golf course business, it is of critical importance to avoid undesirable commercial loan terms, especially commercial mortgage conditions involving length of loan and percentage of value.
Difficulties with Stated Income Commercial Mortgage Financing
Although a stated income commercial loan has a certain number of benefits in specific circumstances, the use of stated income business financing is not recommended for a funeral home loan or golf course loan. A major limitation of a stated income commercial mortgage is the maximum business loan possible. A further limitation is the low percentage of value for stated income commercial financing involving either golf course financing or funeral home financing.
When Commercial Real Estate Loan Value is Less Than Business Value
Some commercial lenders will offer a commercial loan that reflects only the commercial real estate value, and this will result in a reduced business loan. For golf course financing and funeral home financing, the business value is often more than the commercial property value. This will almost always occur with funeral home appraisals.
Excessive Commercial Mortgage Fees for Golf Course and Funeral Home Financing
Business owners should be prepared for reasonable business financing fees during the beginning of the business loan process for golf course financing and funeral home financing. There are a number of business lenders that have chosen to take advantage of the shortage of commercial loan choices for building, purchasing and refinancing a funeral home or golf course. A common tactic is to charge excessive fees of $25,000 and more even if the commercial financing is not finished.
Commercial Lender Options for Funeral Home Loans and Golf Course Loans
Successful business financing for either a funeral home loan or golf course loan will depend upon an appropriate choice involving the commercial lender. As noted above, the number of viable commercial lenders for this specialized type of commercial mortgage is rapidly shrinking.
The practical reality is that a commercial borrower should be prepared for the limited choices of truly qualified lenders for a business loan to buy a business involving funeral homes or golf courses. It becomes essential to choose a lender with the capability to successfully complete the required commercial loan process and simultaneously avoid the business financing problems described above.
Copyright 1995-2007 AEX Commercial Financing Group and Stephen Bush. All Rights Reserved.
About Stephen Bush: Steve will provide candid commercial mortgage - working capital loan advice. Free series of Business Loan - Working Capital reports This article is available as a unique content article with free reprint rights.
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Article Source: http://www.statssheet.com/articles/article54423.html |
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