What’s A Commercial Mortgage and the Benefits It Brings to the Table?

 Are you planning to grow your business? Have you apprehended that the cost of renting has become too great? If yes, then you might find that a commercial mortgage can give your business the finance options you were not aware of.

 

Texas commercial mortgages are specially designed for purchasing or refinancing any land or property for business purposes. Identical to a conventional residential mortgage, cash is borrowed & secured against a property.

 

 

Also they can be used to grow an existing business and for commercial or residential property for development. Through securing a business to a property (e.g. guesthouses, restaurants, pubs) they are likely to be the main resources for financing any business development plan.

 

The commercial mortgage market depicts a smaller market share in comparison to residential mortgages – though their overall value is excessively high. Unlike a residential mortgage, a commercial mortgage extends finance in 4 different ways:

• Purchasing business premises
• Securing land development ventures
• Developing an owner-occupied business
• Adding to a buy-to-let portfolio

Texas commercial mortgages are designed to fit both the borrower and the lenders. The lender needs to see security on their loan and the borrower wishes to benefit through decreased repayments.

 

A commercial property mortgage is a generally a long-term loan (usually up to 30 years) that gives the money to buy a business property. The mortgage lender will usually lend up to seventy percent of the value of the property, leaving the business to pay its regular mortgage payments and using any working capital to fund the growth.

Because the majority of Texas commercial mortgages only give up to seventy percent of the total property value, the lender depends on the business to find the rest in order to finish the purchase. This is usually a significant amount of cash to come up with.

 

A commercial mortgage can do a lot more than just house your business. They’re widely viewed as a source of business funding. Owning your own business premises means you decrease the odds of being exposed to rising rental fees. Texas commercial mortgages can help in future-proofing your business by letting it access equity as the property cost increases over time.

 

There’re several advantages of selecting a commercial mortgage, including:

• Release capital for investment or growth
• Consolidate business debts
• Purchase new equipment
• Expand trading
• Affordable than renting
• Option for sub-letting or leasing parts of the property to create an ancillary income.

Call Texas Commercial Loans if you are looking for Texas commercial mortgages without a lot of hassles that usually involve with traditional banks. Call us on (888) 727-3057!